IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
MUNISHWAR NATH BHANDARI, ROHIT RANJAN AGARWAL, JJ.
La Residentia Developers Pvt. Ltd. – Appellant
Versus
State Of U.P. And 5 Others – Respondents
Writ - C No. 26462 of 2020
Decided on : 29-01-2021
RERA - Real Estate Regulatory Authority - U.P. Real Estate Regulatory Authority (General) Regulation, 2019 - Section 24(a), Section 21, Section 85 of the RERA Act - The court discussed the composition of the Authority, the meeting of the Authority, and the recovery of interest, penalty, or compensation under Section 40 of the Act of 2016. The court interpreted the provisions to determine the competence of one member to pass the order, the validity of the recovery certificate, and the method of execution of the order. The court emphasized the object of the Act to protect the interest of consumers and provide a speedy dispute redressal mechanism.
Fact of the Case:
The petitioner challenged the orders passed by Real Estate Regulatory Authority (RERA) for refund of the principal amount along with interest. The petitioner alleged that the order was passed by one member alone, going against the mandate of Section 21 of the Act of 2016. The petitioner also challenged the award of interest and the execution of the recovery certificate.
Finding of the Court:
The court found that the order by one member was legal, as per the Act of 2016. The court held that the petitioner's challenge to the rate of interest was not maintainable as the petitioner had the remedy of appeal. The court also ruled that the recovery of the amount as arrears of land revenue was in line with the Act's objective of protecting consumer interests and providing a speedy dispute redressal mechanism.
Issues: The issues included the competence of one member to pass the order, the validity of the recovery certificate, and the method of execution of the order.
Ratio Decidendi: The court interpreted the provisions of the Act of 2016 to determine the competence of one member to pass the order, the validity of the recovery certificate, and the method of execution of the order. The court emphasized the object of the Act to protect the interest of consumers and provide a speedy dispute redressal mechanism.
Final Decision: The writ petition was dismissed, with the liberty to avail the remedy of appeal if other than the issue decided by the court remains.
JUDGMENT :
1. Heard Sri Manish Singh with Sri Pratik Chandra and Sri Azhar Ikram, learned counsel for the petitioner. Sri Wasim Masood has put in appearance on behalf of respondents.
2. The writ petition has been filed with the following prayers:
(ii) Issue a writ, order or direction in the nature of Certiorari quashing order dated 8.5.2019 passed Regulatory Authority/Bench No. I, U.P. RERA Regional Office, Gautam Budh Nagar, in Complaint No. 6201811573 (Maninder Singh Vs. La Residentia Developers Pvt. Ltd.).
(iii) Issue a writ, order or direction in the nature of Certiorari quashing order dated 15.9.2020 passed Regulatory Authority/Bench No. I, U.P. RERA Regional Office, Gautam Budh Nagar, in Complaint No. 6201811573 (Maninder Singh Vs. La Residentia Developers Pvt. Ltd.).
(iv) Issue a writ, order or direction in the nature certiorari quashing the impugned Recovery Certificate dated 27.10.2020 issued by opposite party no. 4.
(v) Issue a writ, order or direction in the nature of mandamus not to give effect the impugned recovery certificate dated 27.10.2020 issued by opposite party no. 4.
(vi) Issue a writ, order or direction in the nature of mandamus directing the state respondents not to initiate coercive measures pursuant to the impugned recovery certificate issued by opposite party no. 4."
3. The petitioner has challenged the orders passed by Real Estate Regulatory Authority (in short "RERA") dated 8.5.2019 and 15.9.2020 though an appeal against the said order lies under Section 43(5) of Real Estate (Regulation and Development) Act, 2016 (in short "Act of 2016").
4. It is a case where a complaint was filed by the non-petitioner alleging that despite payment towards unit No. T 38/2004 in the scheme introduced by the petitioner, the possession of a unit has not been given. The unit (flat) which was booked and was to be delivered in the year 2018. The prayer was made for refund of the amount of Rs.28,74,964/- with interest. The Authority found that as per the agreement entered between the parties, possession of the flat in question should have been delivered by 2018. The petitioner-Company failed to show delivery of possession of the flat in question. Thus, taking into consideration the default of the Promoter (petitioner herein) and referring to the judgment of Apex Court, an order was passed by RERA on 8.5.2019 and 15.9.2020 for refund of the principal amount alongwith interest. In pursuance thereof, order dated 8.5.2019 and 15.9.2020 were issued for its execution. The amount of Rs.28,74,964/- was shown towards the principal amount while component of interest was Rs.9,24,323.66/-. The petitioner has filed this writ petition to challenge not only the order dated 8.5.2019 and 15.9.2020 passed by RERA but the recovery certificate dated 27.10.2020 on the execution application.
5. Learned counsel for the petitioner submits that an appeal against the order passed by RERA is maintainable but this case has exceptional circumstances thus even a writ petition would be maintainable. One member of RERA has passed the order going against the Act of 2016. Section 21 provides for formation of Authority consist of Chairperson alongwith two whole time Members. The impugned order is by one Member alone going against the mandate of Section 21 of the Act of 2016. In view of the above, there is no need to prefer an appeal as the order dated 8.5.2019 and 15.9.2020 is without jurisdiction.
6. It is also stated that the order to award interest by the Authority is again going contrary to the provisions. Rules for award of interest was introduced in the year 2018. The amount deposited with the Promotor has been ordered to be returned with interest. The interest has been allowed even for the period prior to introduction of U.P. Real Estate (Regu
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