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2022 Supreme(P&H) 1627

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Amol Rattan Singh, Lalit Batra, JJ.
Ishan Singh – Appellant
Versus
State Of Haryana & Ors. – Respondents
CWP-12704-2022 (O&M)
Decided On : 11-07-2022

Advocates appeared:
Amol Rattan Singh, for the Appellant; Lalit Batra, for the Respondent

The Act of 2016 has an overriding effect over all other laws, and RERA proceedings should not be stalled due to a dispute between collaborators.

Headnote:

RERA Act - Dispute between collaborators - Sections 5, 8, 89 - The court dismissed the petition seeking adjournment of RERA proceedings till the Arbitral Tribunal's Award. The court held that the RERA proceedings should not be stalled due to the dispute between the collaborators, as the Act of 2016 has an overriding effect over all other laws. The construction of the project was allowed to continue, subject to legal approvals, and the sale of units was subject to the decision of the Real Estate Regulatory Authority.

Fact of the Case:

The petitioner sought adjournment of RERA proceedings till the Arbitral Tribunal's Award. The respondent sought vacation of the interim order passed by the court.

Finding of the Court:

The court dismissed the petition, vacated the interim order, and allowed the construction of the project to continue, subject to legal approvals. The sale of units was subject to the decision of the Real Estate Regulatory Authority.

Issues: Dispute over RERA proceedings adjournment, collaboration between collaborators, jurisdiction of RERA and Arbitral Tribunal

Ratio Decidendi: The Act of 2016 has an overriding effect over all other laws. RERA proceedings should not be stalled due to the dispute between the collaborators.

Final Decision: The petition was dismissed, the interim order was vacated, and the construction of the project was allowed to continue, subject to legal approvals. The sale of units was subject to the decision of the Real Estate Regulatory Authority.

JUDGMENT

Amol Rattan Singh, J. (Oral) - On 01.06.2022 the following order had been passed by this court:-

    'By this petition, the petitioner seeks issuance of a direction to respondents No.2 and 3 to adjourn the pending proceedings under the provisions of the 'RERA Act' (in respect of the petitioner and respondent No.4), sine-die, till the culmination of the ongoing arbitration proceedings with passing of an Award by the Arbitral Tribuanl; and further restraining respondent No.4 from violating the status quo order dated 02.12.2019 (Annexure P/26), passed by the Arbitral Tribunal. The petitioner further seeks to restrain the respondent-developer from acting in furtherance of the order dated 09.02.2022 (Annexure P/33), and the order dated 11.05.2022 (Annexure P/38), passed by the Real Estate Regulatory Authority, Gurugram, and the Real Estate Appellate Tribunal respectively.

    Mr. Sharma, learned senior counsel appearing for the petitioner, points to the order passed by the learned Arbitral Tribunal in the matter of arbitration between M/s Spaze Towers Private Limited (respondent No.4 herein) and the petitioner herein (Ishan Singh), with the operative part of that order (copy Annexure P/26), reading as follows:

    'After hearing learned counsel for the parties, it is directed that they will maintain status quo as on today till the next date of hearing. It is made clear that the Claimant will not act upon the irrevocable power of attorney till the next date of hearing and the Respondent will also not precipitate matters in any manner whatsoever.

    It is stated by learned counsel for the Claimant that an order for de-sealing the property is likely to be passed in a day or so. If such an order is passed, the Claimant may receive the order but not act on it till the next date of hearing.

    The parties will not institute any fresh proceedings against each other and will request the concerned authorities, courts and Tribunals for an adjournment in any pending proceedings so that the status quo is not disturbed till the next date of hearing.' On the other hand, he points to the order passed by learned Appellate Tribunal under the RERA Act, the operative part of which reads as follows:

    'Taking into consideration the aforesaid pleas raised by ld. counsel for the parties and in the facts and circumstances of the case as an interim measure, it is ordered that the construction of the project will only be carried out if there is a legal approval of the competent authority under the relevant laws. It is further clarified that there will be no bar in construction if the necessary approvals, as required under relevant laws, are in place. To grant or not to grant the requisite approval will be entirely within the discretion of the competent authority.'

    Notice of motion.

    Dasti also.

    Mr. Bahri accepts notice at the asking of the court on behalf of the respondent No.1.

    The remaining respondents be served by normal and dasti process.

    Adjourned to 11.07.2022.

    To be shown in the urgent motion list.

    In view of the specific directions given by the Arbitral Tribunal on 02.12.2019, to the effect that the said order would be brought to the notice of all Courts and Tribunals seized of any proceedings between the parties, which is obviously seen to have been brought the notice of the learned Appellate Authority, it is directed that status quo be maintained as ordered by Arbitral Tribunal vide the aforesaid order, till the next date of hearing before this Court.

    On a specific query to learned senior counsel he has submitted that the Arbitral Tribunal has not announced the Award, though arguments have been heard and the order has been reserved.

    However, it needs to be observed that whether or not there is any collusion between any of the parties to try and defeat any complaint filed under the Real Estate Regulatory Act, 2016, (by any home buyer), would also need to be examined by this court.

    If there is found to be any such collusion towards that end, this petition would need to be dism

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