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2022 Supreme(P&H) 1730

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Vinod S. Bhardwaj, J.
Association Of Property Professionals & Ors. – Appellants
Versus
State Of Haryana & Ors. & Ors. – Respondents
CWP-19796-2018
Decided On : 12-12-2022

Advocates appeared:
Mr. Vaibhav Jain, Advocate, and Mr. Amar Jeet, Advocate, and Mr. Aashish Chopra, Sr. Advocate with Mr. Yash Pal Sharma, Advocate, for the Appellant; Mr. Lokesh Sinhal, Sr. Addl. A.G. Haryana., for the Respondent.

A sole proprietorship concern and the proprietor are one and the same and cannot be treated as separate juristic entities under the RERA Act, 2016.

Headnote:

Real Estate Agents - Jurisdiction of RERA Act - Section 9, 3, 4, 9(1), 9(2), 9(3), 9(4), 9(5), 9(6), 9(7), 10, 11 - The court held that a sole proprietorship concern and the proprietor are one and the same and cannot be treated as separate juristic entities. The demand raised for charges applicable to the category 'other than individuals' from the petitioners, who are sole proprietors, was deemed unsustainable. The petitioners were held liable to pay the registration charges/renewal charges applicable to individuals instead of the category 'other than individual'.

Fact of the Case:

The petitioners, engaged in the business of Real Estate as sole proprietors, applied for registration as Real Estate Agents under the RERA Act, 2016. They were issued Registration Certificates as individuals but were later asked to pay charges applicable to the category 'other than individuals' by the Real Estate Regulatory Authority.

Finding of the Court:

The court found that a sole proprietorship concern and the proprietor are one and the same and cannot be treated as separate juristic entities. The demand raised for charges applicable to the category 'other than individuals' from the petitioners, who are sole proprietors, was deemed unsustainable.

Issues: The main issue was whether a sole proprietorship concern is a separate juristic entity from the proprietor and thus liable to pay charges applicable to the category 'other than individuals' under the RERA Act and the rules framed thereunder.

Ratio Decidendi: The court held that a sole proprietorship concern and the proprietor are one and the same and cannot be treated as separate juristic entities. The demand raised for charges applicable to the category 'other than individuals' from the petitioners, who are sole proprietors, was deemed unsustainable.

Final Decision: The petitions were allowed, and the petitioners were held liable to pay the registration charges/renewal charges applicable to individuals instead of the category 'other than individual'.

JUDGMENT

Vinod S. Bhardwaj, J. - Two writ petitions are being disposed of as parties agree that the dispute involved in the present set of petitions is identical and can be decided by a common judgment.

2. The question that arises for consideration in the present petition is as to whether the proprietorship concern is a juristic entity separate and distinct from the proprietor himself and thus liable to pay the charges applicable to the category 'other than individuals' instead of the category of 'individuals' under the RERA Act and the rules framed thereunder.

3.. For the facility of reference, facts have been drawn from CWP-20382-2018 titled 'Kumar Raunak and others versus State of Haryana and another'.

4. Briefly summarized, the facts of the case are that the petitioners are individuals engaged in the business of Real Estate i.e. introducing prospective buyers and sellers to each other for negotiation in relations to sale and purchase of Real Estate property. The petitioners, called as Real Estate Agents, are sole proprietors carrying on their work as individuals under the name of their respective sole proprietorship concerns. The petitioners have collectively formed an association of certified Realtors of India to enable its members to conduct their business with professional competence and to provide ethical Real Estate services. The Real Estate (Regulation & Development) Act, 2016 received the assent of the President of India and was published in the Gazette of India on 26.03.2016, hereinafter referred to as 'RERA Act, 2016'. The object of the Act was to regulate and promote the Real Estate sector; to ensure that all the transactions in the Real Estate Sector take place in an efficient and transparent manner alongwith protecting the interest of the consumers while also providing the mechanism for speedy adjudication of disputes. Section 9 of the aforesaid Act makes it obligatory for the Real Estate Agents to register themselves with the Haryana Real Estate Regulatory Authority. The term 'Real Estate Agent' is defined in the said Act. The relevant provisions of the said Act reads thus:

    2(zm) "Real Estate Agent" means any person, who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment or building, as the case may be, in a real estate project, by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services whether as commission or otherwise and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be, and includes property dealers, brokers, middlemen by whatever name called.

    Xx xx xx xx xx xx xx xx

    9. (1) No Real Estate Agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project registered under section 3, being sold by the promoter in any planning area, without obtaining registration under this section.

    (2) Every Real Estate Agent shall make an application to the Authority for registration in such form, manner, within such time and accompanied by such fee and documents as may be prescribed.

    (3) The Authority shall, within such period, in such manner and upon satisfying itself of the fulfillment of such conditions, as may be prescribed-

    (a) grant a single registration to the Real Estate Agent for the entire State of Union territory, as the case may be;

    (b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of the Act or the rules or regulations made thereunder:

    Provided that no

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