2020 Supreme(Ori) 80

IN THE HIGH COURT OF ORISSA, CUTTACK
Dr. B.R. Sarangi, J.
Bimalendu Pradhan - Appellant
Versus
State Of Odisha & Anr. - Respondents
W.P.(C) No. 8158 of 2019, W.P.(C) No. 11863 of 2019 And W.P.(C) No. 3029 of 2020
Decided On : 01-07-2020

The state government is obligated to provide financial autonomy to the Real Estate Appellate Tribunal (REAT) by allocating funds from the Real Estate Regulatory Fund, with separate heads of account for its management.

Headnote:

REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 - SECTION 43(1), 44(1), 45, 51, 75(1), 75(2), 76(2) - ODISHA REAL ESTATE (REGULATION AND DEVELOPMENT) RULES, 2017 - RULE 32, 35 - WRIT PETITION - DIRECTIONS - FINANCIAL AUTONOMY - REAL ESTATE APPELLATE TRIBUNAL - FUND ALLOCATION - BUDGETARY PROVISION - STAFF ABSORPTION - PERMANENT AND TEMPORARY OFFICE - RENOVATION - INTERIM ORDERS - CONTINUANCE. The Real Estate Appellate Tribunal (REAT) was established under the Real Estate (Regulation and Development) Act, 2016, with the objective of providing a forum for resolving disputes related to real estate projects. However, the tribunal faced challenges in becoming fully functional due to various issues, including a lack of financial autonomy and inadequate staffing. In response to writ petitions filed by aggrieved parties, the Orissa High Court issued directions to the state government to address these issues and ensure the smooth functioning of REAT. The court directed the government to provide financial autonomy to REAT by allocating funds from the Real Estate Regulatory Fund, with separate heads of account for its management. The court also ordered the absorption of nineteen employees from the erstwhile Odisha Administrative Tribunal into REAT and directed the government to create permanent posts in the tribunal as per an agreed restructuring plan. The court further directed the government to make the temporary site allotted to REAT ready for use and expedite the renovation work at the permanent site. The court also allowed the interim orders passed in the writ petitions to continue until REAT starts functioning and takes up appeals. However, the court clarified that REAT should not be influenced by these interim orders while considering appeals. The court's directions were aimed at addressing the systemic issues that were hindering the effective functioning of REAT and ensuring that the tribunal could fulfill its mandate of resolving disputes and protecting the interests of consumers in the real estate sector.

Fact of the Case:

The petitioners, who were aggrieved by the non-functioning of the Real Estate Appellate Tribunal (REAT), filed writ petitions seeking directions to the state government to make REAT functional and address various issues affecting its operations. The main issues raised in the writ petitions were the lack of financial autonomy for REAT, the absence of a permanent office, the non-absorption of staff from the erstwhile Odisha Administrative Tribunal, and the delay in completing the renovation work at the permanent site.

Finding of the Court:

The Orissa High Court found that the state government had not taken adequate steps to ensure the smooth functioning of REAT, despite the statutory mandate to establish and maintain the tribunal. The court observed that the lack of financial autonomy, inadequate staffing, and the absence of a permanent office were major impediments to the effective functioning of REAT. The court also noted that the government had not complied with the directions issued by the court in earlier orders, which had resulted in further delays in making REAT operational.

Issues: 1. Whether the state government had provided financial autonomy to the Real Estate Appellate Tribunal (REAT) as required under the Real Estate (Regulation and Development) Act, 2016. 2. Whether the government had taken steps to absorb staff from the erstwhile Odisha Administrative Tribunal into REAT, as agreed upon in a high-level committee meeting. 3. Whether the government had made arrangements for a permanent office for REAT and expedited the renovation work at the permanent site. 4. Whether the interim orders passed by the court in earlier writ petitions should continue until REAT starts functioning and takes up appeals.

Ratio Decidendi: The Orissa High Court held that the state government was obligated to provide financial autonomy to REAT by allocating funds from the Real Estate Regulatory Fund, with separate heads of account for its management. The court also directed the government to absorb nineteen employees from the erstwhile Odisha Administrative Tribunal into REAT and create permanent posts in the tribunal as per an agreed restructuring plan. The court further directed the government to make the temporary site allotted to REAT ready for use and expedite the renovation work at the permanent site. The court also allowed the interim orders passed in the writ petitions to continue until REAT starts functioning and takes up appeals, but clarified that REAT should not be influenced by these interim orders while considering appeals.

Final Decision: The Orissa High Court allowed the writ petitions and issued directions to the state government to address the issues affecting the functioning of the Real Estate Appellate Tribunal (REAT). The court directed the government to provide financial autonomy to REAT, absorb staff from the erstwhile Odisha Administrative Tribunal, make arrangements for a permanent office, and expedite the renovation work at the permanent site. The court also allowed the interim orders passed in earlier writ petitions to continue until REAT starts functioning and takes up appeals.