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IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR.JUSTICE V.G.ARUN, J
Confident Projects India (P) Ltd – Appellant
Versus
The Kerala Real Estate Appellate Tribunal – Respondent
JUDGMENT :
The 1st petitioner is a company engaged in the construction of apartments and non-residential buildings. The 2nd petitioner is the Managing Director of the 1st petitioner company. The 2nd respondent is the allottee of an apartment in one of the projects. The 2nd respondent had filed a complaint before the Kerala Real Estate Regulatory Authority (K-RERA), seeking compensation of Rs.5 lakhs for the loss and mental agony suffered by him due to the failure on the part of the petitioners to provide the promised facilities and amenities. The K-RERA partly allowed the complaint vide Ext.P1 order and directed the petitioners to pay Rs.4,28,368/- to the 2nd respondent as compensation, with 14.85% interest from the date of complaint till realisation, along with litigation cost of Rs.5000/-. While filing the appeal against the order, petitioners deposited the entire amount of compensation along with interest and produced the Fixed Deposit receipts, as mandated by Section 43(5) of the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as 'the Act'). Further, the fee of Rs.1000/- stipulated in Rule 28 of the Kerala Real Estate (Regulation and Development) Rule
Pre-deposit under Section 43(5) of the Real Estate Act must be refunded post-appeal resolution, safeguarding allottee interests.
The pre-deposit requirement under Section 43(5) of the Real Estate Act is obligatory, and cannot be replaced with security measures like a Bank Guarantee.
The mandatory pre-deposit under Section 43(5) of the Real Estate Regulation and Development Act cannot be substituted with a bank guarantee, as the ordered amount is compensation.
The requirement of a pre-deposit under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016 is mandatory for promoters appealing against orders, with no discretion to waive this re....
Mandatory pre-deposit under the Real Estate (Regulation and Development) Act applies only to appeals filed by promoters, not by other parties.
(1) Parliament has power to legislate even retrospectively to take into its fold pre-existing contract and rights executed between parties in larger public interest.(2) Real Estate (Regulation and De....
In compensation claims under the Real Estate (Regulation and Development) Act, a promoter must deposit only 30% to entertain an appeal, contrary to 100% for return of amounts, as clarified by the Sup....
The main legal point established in the judgment is the court's authority to reduce the pre-deposit condition for hearing an appeal under Section 43(5) of the RERA Act based on genuine hardships, as ....
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