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2022 Supreme(P&H) 1251

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Tejinder Singh Dhindsa, Vinod S. Bhardwaj, JJ.
Ramprastha Promoters And Developers Private Limited & Ors. – Appellants
Versus
Union Of India & Ors. – Respondents
CWP Nos. 6688, 13639, 13831, 13839, 13841, 13844, 13846, 13848, 13850, 13851, 13854, 13856, 13862, 13865, 13869, 13875, 13878, 13883, 13887, 13889, 14445, 14448, 14449, 14452, 14453, 14455, 14456, 14459, 18011, 18012, 18014, 18016, 18019, 18022, 18025, 18028, 18032, 18033, 18111, 18115, 18120,18123, 18130, 18135, 18141, 18144, 18151, 18157, 18159, 18162, 18164, 18165, 18175, 18181 of 2021; CWP Nos. 5776, 5780, 14466, 14470, 14477, 14480, 14485, 14844, 14851, 14901, 14903 of 2021; CWP Nos. 4273 and 4278 of 2021; CWP Nos. 15381, 16393, 19054, 19056, 17136, 17196 of 2021; CWP Nos. 2425, 2426, 2427, 2428, 2429, 2430, 2431, 2647 and 2648 of 2021 and CWP Nos. 21908, 21909, 21910, 21919, 21966, 22001 and of 2020.
Decided On : 13-01-2022

Mr. Arun Walia, Sr. Advocate with Mr. Marinal Sharma, Advocate, Mr. Ashish Chopra, Sr. Advocate with Ms. Swati Dayalan and Ms. Nitika Sharma, Advocates, Mr. Mukul Agarwal, Advocate, Mr. Ajiteshwar Singh, Advocate, Mr. Vineet Sehgal, Advocate, Mr. Sachin Mittal and Mr. Akshat Mittal, Advocates, for the Appellant; Mr. Satya Pal Jain, Additional Solicitor General of India with Mr. Sobit Phutela, Advocate and Ms. Tanvi Jain, Advocate for Union of India. Mr. Ankur Mittal, Additional AG Haryana with Mr. Saurabh Mago, Assistant Ag Haryana. Mr. Ankur Mittal, Advocate with Ms. Kushaldeep K. Manchanda, Mr. Shivam Garg, Advocate and Ms. Varsha Sharma, Advocate for Respondent-Rera. Mr. Sandeep Singh, Advocate, Mr. Neeraj Sheoran, Advocate, Mr. Himanshu Jain, Mr. Abhay Jain and Mr. Rishab Jain, Advocates, Mr. Anurag Jain and Ms. Preeti Taneja, Advocates, Mr. Narender Kumar Sharma and Ms. Suman Sharma, Advocates, Mr. Tanuj Aggarwal and Mr. Sunil Kumar Dhanda, Advocate, Mr. Govind Rishi and Mr. Saurabh Gulia, Advocates, Mr. Sanjeev Gupta, Advocate, Mr. Manish Shukla, Mr. Nilotpal Shyam and Ms. Shivali, Advocates, for the Respondent.

The court upheld that the High Court can only waive mandatory pre-deposit under extreme hardship; the Real Estate Authority retains jurisdiction for directing refunds and interest, separate from adjudicating injuries or compensation.

Headnote:(A) Real Estate (Regulation and Development) Act, 2016 - Sections 12, 14, 18, 19, and 43(5) - Jurisdiction of Authority to direct refund of amounts and the High Court's power to relax pre-deposit conditions under Article 226 - Writ petitions filed by developers against the orders of Haryana Real Estate Regulatory Authority regarding compulsory pre-deposit for appeals; developers claimed pre-deposit conditions are onerous - Court held that mere inconvenience does not warrant waiving statutory mandate - Affirmed that Authority has jurisdiction over refund and interest cases, not the Adjudicating Officer (Paras 16-23).

(B) Jurisdiction and Onerous Conditions - Court ruled that statutory provisions cannot be overridden by the Court's powers under Article 226 unless extreme hardship is shown; merely claiming hardship without evidence is insufficient; petitioners failed to demonstrate the onerous nature of pre-deposit (Paras 50-50).

Facts of the case:
A range of developers challenged the RERA orders on grounds of jurisdiction and claimed that pre-deposit before the appellate tribunal is excessively burdensome, especially given financial difficulties and pandemic impacts.

Findings of Court:
Reinforced statutory provisions regarding the authority's jurisdiction, clarified that absolute pre-deposit is required before appeals, and established pre-deposit as a necessary step for preserving consumer interests.

Issues: Whether the RERA Authority can mandate a refund or interest on it, and whether the High Court can waive pre-deposit conditions.

Ratio Decidendi: The Court reaffirmed that the legislature intended the pre-deposit as a safeguard for allottee interests and upheld the statutory requirement as non-negotiable barring extreme hardship.

Result: Petitions dismissed; developers granted four weeks to comply with pre-deposit requirements.

Table of Content
1. details of specific prayers by developers in their complaints. (Para 4 , 5 , 6)
2. arguments against the jurisdiction of rera authority. (Para 10 , 11)
3. court's analysis on powers of rera authority versus adjudicating officer. (Para 17 , 20)
4. emphasis on statutory nature of pre-deposit. (Para 19 , 40)
5. court reiterates the independence of its jurisdiction under article 226. (Para 22 , 26)
6. final conclusions on petitions and conditions for pre-deposit. (Para 52 , 54)

JUDGMENT

Vinod S. Bhardwaj, J. - The two questions that arise for consideration in the present batch of petitions relates to the jurisdiction of Authority to direct refund of the amount with/without of interest and the power of High Court under Article 226 of the Constitution of India to relax the condition of pre-deposit under Section 43(5) of RERA Act, 2016.

2. By this common order, we intend to dispose of a batch of writ petitions involving common questions of law. To demonstrate the similarity of issues, reference to the prayers from lead case of each batch have been extracted. The said writ petitions have been filed by respective Companies against the orders passed by the Haryana Real Estate Regulatory Authority. Learned counsel appearing on behalf of the respective developers have submitted that the averments contained in the various writ petitions filed on behalf of the respective developers are identical to their lead cases and stands corroborated by learned counsel appearing for respondent-HSIIDC. The counsel appearing for the petitioners in all the matters also submitted that they have not raised any challenge to the vires of statutory provision under Section 43(5) of the Real Estate (Regulatory and Development) Act 2016 (hereinafter referred to as the Act of 2016) and instead seek to invoke the indulgence of the Writ Court since the condition of pre-deposit is onerous. The extra ordinary jurisdiction is being invoked to obviate the hardship faced by the petitioners.

FACTS

    1st Batch (Ramprastha Promoters and Developers Pvt. Ltd.)

    3) Reference to the facts of the case is made from CWP No.6688 of 2021.

    The petitioner herein has made the following prayers:-

    a) issue a writ in the nature of MANDAMUS directing the Real Estate Regulatory Authority to not proceed with Execution Proceedings dated 01.12.2020 (Annexure P-9) as the same are being carried out in respect of an order dated 20.02.2020 (Annexure P-6), which itself had been passed illegally and without jurisdiction, more particularly in view of the orders dated 05.11.2020 (Annexure P-15) passed by the Honble Supreme Court.

    b) Issue a writ in the nature of MANDAMUS directing the Ld. Haryana Real Estate Appellate Tribunal, respondent No.3, to entertain the Appeal of the petitioner against order dated 20.02.2020 (Annexure P-6) passed by respondent No.4, without requiring the petitioner to first deposit with the Appellate Tribunal the amount to be paid to the Allottee, as per the aforementioned order of the Real Estate Regulatory Authority, Respondent No.4, thereby waiving the condition of pre-deposit as mandated by Section 43(5) of the Real Estate (Regulation and Development) Act 2016;

    c) issue a writ in the nature of CERTIORARI, seeking quashing of order dated 20.02.2020 (Annexure P-6) passed by Real Estate Regulatory Authority, Respondent No.4, in Complaint No.2785; titled as Geeta versus Ramprastha Developers and Promoter Pvt. Ltd., the same besides being, inter alia, illegal and arbitrary, is also without jurisdiction inasmuch as respondent No.4 has misdirected itself in entertaining and deciding the Complaint filed on behalf of Respondent Nos.5, especially when the same had been filed in such form/manner and/or seeking such relief, which as per the scheme of Real Estate (Regulation and Development) Act, 2016 could only be said to be maintainable before the Adjudicating Officer and not before the Real Estate Regulatory Authority;

    d) issue a writ in the nature of CERTIORARI, seeking quashin

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