The Real Estate Regulation Act mandates clear procedures for the recovery of amounts due from builders, allowing simultaneous actions against movable and immovable properties.

ORDER :

D.Bharatha Chakravarthy, J.

The Writ Petition is for Mandamus directing the first and second respondents to take action on the Recovery Warrant dated 25.04.2024 issued in E.P.No.9 of 2024 passed under Section 40(1) of the Real Estate Regulation Act 2016(in short “RERA Act, 2016). By taking action with reference to the specific properties, that are mentioned by the petitioner.

2.When the matter came up for admission, Dr.S.Suriya, learned Additional Government Pleader appearing on behalf of the respondents 1 and 2 would submit that already a demand notice in Form-1 is issued directing the concerned builders to pay the amount and only on expiry of the notice period, further action can be taken.

3.It can be seen that under the RERA Act, 2016, the authority passes the award indicating the compensation/return of the price money, that is to be returned/paid by the builders concerned to the purchasers or the affected persons. The matter does not stop there. The affected persons have to file the execution petition. Once again, after enquiry in the execution petition, the recovery warrant is issued. Once the recovery warrant is issued under Section 41 of the Act, the amount becomes recoverable as the arrears of land revenue. Once the recovery warrant is forwarded to the District Collector, the District Collector has to follow the provisions of the Tamil Nadu Revenue Recovery Act, 1864, to realise the said amount. The declaration as if it is the arrears of land revenue in terms of Section 4 is done by the RERA Act, 2016 itself and as such, it becomes an amount to be recovered as per Section 5 of the Act. Therefore, there are more than one ways of recovering the said amount. The Act provides to proceed both against the movable property and against the immovable property. There is no any bar to proceed against both simultaneously.

4.In all cases of recovery, the District Collector shall endeavour to proceed in both manner. Firstly, after ascertaining the address of the concerned person, and the kind of movables that are there, the Collector, through the concerned Tahsildar and the Revenue Inspector/ Village Administrative Officer, endeavour to ascertain the address of the defaulting concern and ascertain the movables that are present in their address. Whatever the moveables that are present, for example in case of in an office, sofa set, television, air conditioner, fans, chairs, almirahs, telephones etc., can be ascertained and immediately thereof, the procedure under Section 8 can be followed for passing the distraint order. The distraint procedure envisages the issue of a demand in writing, that is also termed as a distraint notice, wherein an opportunity is given to the concerned person to pay the amount, failing which the movable is mentioned therein, will be distrained. Thereafter, it has to be followed by the second notice of distraint. If the amount is paid, the same can be recorded as per Section 10. The amount is not paid, then the procedure under Section 9 onwards have to be followed. The distraint warrant has to be transmitted and the movable properties have to be taken away and sold as per the Provisions of the Act, specifically Sections 20 to 24 of the Act. This apart, if the aggrieved party provides the particulars of the immovable properties, or in the absence thereof, the District Collector either personally or through the Tahsildar or the Subordinate Officials, may take steps to identify the immovable properties, that are owned by the defaulting concern. Once the immovable properties are ascertained, the notice of demand as per Section 25 has to be issued thereof. If the amount is not paid, thereafter, the authorities have to sell the properties by following the procedure of attachment under Section 27 and sale under Section 36.

5.In this case, though it is clear that the demand is issued under Section 25, the authorities will proceed further with the attachment and the sale. The petitioner himself has furnished the RS