IN THE HIGH COURT OF KERALA AT ERNAKULAM
EASWARAN S., J.
Sanroyal Builders And Contractors Pvt Limited, Represented By Its Managing Director Mr. Sanjudas N.S. – Appellant
Versus
Divya Balu – Respondent
MSA No. 121 of 2025
Decided On : 08-04-2026
| Table of Content |
|---|
| 1. execution of rera orders through revenue recovery. (Para 1 , 2) |
| 2. subordinate legislation cannot control main statutes. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12) |
| 3. rera has inherent powers for recovery; notification not required. (Para 13 , 14 , 15) |
| 4. appeal dismissed; execution deemed appropriate. (Para 16) |
JUDGMENT :
EASWARAN S., J.
This appeal arises out of the order in REFA No. 104 of 2025 of the Kerala Real Estate Appellate Tribunal, Ernakulam, which affirmed the order dated 25.07.2025 in E.P. No. 28 of 2025 of the Kerala Real Estate Regulatory Authority, Thiruvananthapuram.
2. The short point which falls for consideration in this appeal is; whether for execution of an order passed by the RERA, revenue recovery proceedings can be initiated? The appellants contend that there is no power to recover the amounts ordered by the RERA through revenue recovery proceedings under Section 40 (1) of the Real Estate (Regulation & Development) Act, 2016 (hereinafter referred to as the ‘Act of 2016’ for short). Reliance is placed on Rule 27 of the Kerala Real Estate (Regulation & Development) Rules, 2018 (hereinafter referred to as the ‘Rules of 2018’ for short) provides that the Order of the RERA shall be executed as though it is a decree passed by the Civil Court. Learned Counsel further asserts before this Court that the Order passed by the RERA cannot be put in execution through revenue recovery proceedings because there is no amount liable to be recovered for and on behalf of the institution namely, the RERA. He further points out that for enabling the initiation of the revenue recovery proceedings, the notification under Section 71 of the Kerala Revenue Recovery Act, 1968 (hereinafter referred to as the ‘Act of 1968’ for short) is required and that by Notification dated 28.12.2020, the State Government had declared that the provisions of the Act of 1968 shall be applicable for the recovery of amounts due from any persons or class of persons to the K- RERA. Therefore, the contention now raised is that if an amount is due from a promoter to an allottee, and that amount portrays the character of penalty, interest or compensation, the provisions of the Revenue Recovery Act cannot be put into motion and the only possible method for execution is to file an execution petition before the Civil Court and execute the order as though it is a decree passed by the Court of competent jurisdiction.
3. Heard Sri. Legith T. Kottakkal, the learned Counsel for the appellants.
4. Before proceeding further, this court must consider whether any substantial question of law arises for consideration or not, warranting issuance of notice to the respondents. What is contended in this appeal is that despite the enabling provision under Section 40 (1) of the Act of 2016, there should be a notification under Section 71 of the Act of 1968 for enabling the RERA to recover the amounts due from a promoter.
5. Section 40 (1) of the Real Estate (Regulation & Development) Act, 2016 reads as under;
“40. Recovery of interest or penalty or compensation and enforcement of order, etc. —(1) If a promoter or an allottee or a real estate agent, as the case may be, fails to pay any interest or penalty or compensation imposed on him, by the adjudicating officer or the Regulatory Authority or the Appellate Authority, as the case may be, under this Act or the rules and regulations made thereunder, it shall be recoverable from such promoter or allottee or real estate agent, in such manner as may be prescribed as an arrears of land revenue.”
6. Rule 27 of the Rules of 2018, provides for manner of implementation of order or direction or decisions of the adjudicating authority. Rule 27 of the Kerala Real Estate (Regulation & Development) Rules, 2018 reads as under;
"Rule - 27. Manner of implementation of order, direction or decisions of the adjudicating officer, the Authority or the Appellate Tribunal.
For the purpose of sub-section (2) of Section 40 , every order passed by th
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