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2022 Supreme(P&H) 2111

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Amol Rattan Singh, Lalit Batra, JJ.
M/s. International Land Developers Private Limited – Appellant
Versus
Aditi Chauhan & Ors. – Respondents
CWP No. 7738 of 2022 (O&M); CWP No. 7750 of 2022 (O&M) and CWP No. 9942 of 2022
Decided On : 17-08-2022

Advocates appeared:
Mr. Chetan Mittal, Senior Advocate with Mr. Akshat Mittal, Advocate, Mr. Sandeep Sharma, Advocate and Mr. Mayank Aggarwal, Advocate, Mr. Aashish Chopra, Senior Advocate, with Mr. Sugandha Kundu, Advocate, for the Appellant; Mr. Neeraj Gupta, Advocate, Mr. Ankur Mittal, Advocate with Ms. Kushaldeep Kaur, Advocate, Ms. Vasundhra Asija, Advocate, and Mr. Anmol Dutt Sharma, Advocate, for the Respondent

Headnote:(A) Haryana Real Estate (Regulation and Development) Act, 2016 - Sections 40(1), 40(2), and 43(5) - Writ petitions concerning enforcement of orders by the Haryana Real Estate Authority - Authority ordered refunds to complainants due to non-delivery of flats - Petitioner contended orders lacked jurisdiction, sought waiver of pre-deposit for appeal - Court held jurisdictional issues under the Act should be resolved in appeal, declining to interfere via writs. (Paras 49, 50, 102)

(B) Jurisdiction - Distribution of powers between Authority and Adjudicating Officer concerning refunds clarified - Supreme Court precedent underlined: refund power rests with Authority. (Paras 86, 90)

(C) Financial hardship - Concept of genuine hardship in the context of mandatory pre-deposit questioned - Court reiterated financial incapacity doesn't negate statutory obligations; intent of the Act is consumer protection. (Paras 47-53, 102)

(D) Legal Remedy - Court emphasized obligation to pursue statutory appeal first, dismissing direct writ approach as inappropriate when statutory remedies available. (Paras 41, 102)

Table of Content
1. legal context of the three petitions. (Para 1 , 2 , 4 , 5)
2. arguments regarding jurisdiction and remedies. (Para 6 , 7 , 8 , 10)
3. court's observations on applicability of laws. (Para 12 , 15 , 19 , 21)
4. final decision on petitions and implications. (Para 26 , 28 , 33 , 39)
5. conclusions drawn from the judgment. (Para 42 , 50 , 62)

JUDGMENT

Amol Rattan Singh, J. - Vide this judgment, we are disposing of three writ petitions, i.e. CWP nos.7738, 7750 and 9942 of 2022.

The first two petitions are wholly on the same issue and in fact challenging the same order, with the petitioner also being the same in both, the only reason for filing two separate petitions being that the impugned order disposes of complaints filed by different persons against the same petitioner (company) and consequently the said company in its wisdom chose to file two petitions qua the different complainants, even though the impugned order is common.

The 3rd petition, i.e. CWP no.9942 of 2022, in one of its aspects, i.e. waiver of the pre-deposit to be made in terms of Section 43 (5) of the Haryana Real Estate (Regulation and Development) Act, 2016, is the same as the first two petitions and as a matter of fact as would be seen from this judgment, eventually the merits of the cases of any of the petitioners are not being touched upon by this court in exercise of jurisdiction under Article 226 of the Constitution of India, there being an effective alternate remedy under the provisions of the aforesaid Act by way of appeals before the learned appellate tribunal constituted under Section 43 of the Act.

In view of the fact that one of the key issues raised in the 3rd petition is with regard to the manner of execution of the orders impugned in that petition, with reference to Section 40 of the aforesaid Act, they are both being dealt with separately, in Parts I and II of this judgment respectively.

Part I

CWP No. 7738 and 7750 of 2022

2. Vide these petitions, the same petitioner (company) has challenged the common order passed by the learned Adjudicating Officer, Haryana Real Estate Regulatory Authority, dated 31.03.2021, by which, essentially, the petitioner has been directed to refund a sum of Rs.48,49,864/- to respondent no.1 in CWP no. 7738 of 2022 and a sum of Rs.50,49,387/- to respondents no.1 and 2 in CWP no.7750 of 2022.

The aforesaid direction has been given while deciding separate complaints filed by the said respondents in each petition, before the Haryana Real Estate Regulatory Authority (hereinafter referred to as the Authority) with the said order also having disposed of a 3rd complaint filed by one Nitin Suri and Priyanka Suri, but with the petitioner company not having challenged the same order order as regards Nitin Suri and Priyanka Suri, (or at least no such challenge before this court having been brought to our notice).

3. The facts, for convenience, are being taken from CWP no.7738 of 2022, with the prayer in each petition as also the legal issues in each, being the same.

4. The admitted case even as per the petitioner in its petitions, is that it has been issued a licence by the respondent State of Haryana to develop a residential housing project in Sector-33, Sohna, Gurugram; and specifically that part of the project as affects the aforesaid respondents in these petitions, has been given the nomenclature of Project ARETE. Respondent no.1 in CWP no.7738 of 2022 was allotted Flat no.C-2002, 19th Floor, in the said project, with the area of the flat measuring 118.45 sq. mtrs. and with the total sale consideration settled between the petitioner and the said respondents being Rs.71,16,975/-, out of which the said respondent has already paid Rs.48,19,864/-.

A 'Builder Buyer Agreement' dated 20.06.2015 was also executed between the parties and possession of the flat was to be delivered to respondent no.1 by 20.12.2019.

5. It has also

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