IN THE HIGH COURT OF ALLAHABAD
SAUMITRA DAYAL SINGH, J.
Air Force Naval Housing Board Air Force Station - Appellant
Versus
U.P. Real Estate Regulatory Authority And Another - Respondents
Rera Appeal Defective No. 6 of 2021
Decided On : 16-03-2021
Real Estate (Regulation & Development) Act, 2016 - Section 44(2) - Demand of penalty - Appellant is a zero-profit organization, registered as a society of retired personnel of Indian Air Force and Indian Navy. It exists and operates only for the purpose of providing affordable housing to members of Indian Air Force and Indian Navy and widows of such personnel - Appellant's appeal before Tribunal had been dismissed at preliminary stage, it was not entertained due to lack of payment of higher amount of pre-deposit directed by Tribunal - Whether deposit of entire disputed demand of penalty is a condition precedent to maintain appeal against penalty, under Section 44(2) of Act, 2016.
Finding of the court: Application under section 43(5) of the Act, afresh, however, since it has already been observed, that no special circumstance had been recorded or noted by the Tribunal and the appellant had already deposited 30% of the disputed demand of penalty, in the facts of the present case, since the status of the appellant is also claimed to be that of a zero-profit society existing solely for the object of providing affordable housing to the personnel of the Indian Air Force and Indian Navy and the widows of such personnel, it appears just that the appeal be heard and decided by the Tribunal on its own merits, against the deposit of 30% of the disputed demand of penalty - Tribunal has clearly misconstrued, both the statutory provision as well as the decisions of this Court passed in Second Appeal.
Result: Appeal is allowed.
JUDGMENT :
1. Heard Sri Ashish Kumar Singh, learned counsel for the appellant and Sri Wasim Masood, learned counsel for the Uttar Pradesh Real Estate Regulatory Authority (RERA in short).
2. The present appeal has been filed against the order passed by the Real Estate Appellate Tribunal (Tribunal in short) in Appeal/Misc. Case No.360 of 2019 dated 28.02.2020 whereby the Tribunal has dismissed that appeal filed by the appellant, under Section 44(2) of the Real Estate (Regulation & Development) Act, 2016 (hereinafter referred to as the 'Act'). Since the appellant's appeal before the Tribunal had been dismissed at the preliminary stage, it was not entertained due to lack of payment of higher amount of pre-deposit directed by the Tribunal. Principally, that issue appears to be an issue between the appellant and the Tribunal, affecting the right of appeal of the appellant without examination on merits. Hence, the present appeal has been heard and decided at the fresh stage itself, without notice to the claimant respondent.
3. Undisputedly, the above-described appeal came to be filed by the appellant against the order of the RERA, dated 10.04.2019 whereby penalty @ MCLR + 1% w.e.f. 01.07.2012 was imposed on the appellant. It may also not be disputed that, at the time of filing the aforesaid appeal, the appellant furnished a demand draft for an amount of Rs.6,33,000/-towards 30% of the penalty amount awarded by the RERA. Further, it appears that there is no dispute to the computation of 30% of the disputed demand of penalty. By an order dated 28.01.2020, the Tribunal required the appellant to deposit the balance amount i.e. the entire amount of penalty awarded by the RERA as a pre-condition to maintain the appeal. For convenience, the relevant part of the order dated 28.01.2020 is quoted below:
Applicant is directed to deposit the balance amount, if any, towards Section 43(5) of the Act, in the light of observation laid down by Hon'ble High court Lucknow Bench, "in Second Appeal No. 364 & 367 of 2018 (Radicon Infrastructure & Housing Private Limited vs. Karan Dhyani), decided on 26.7.2019." by the date fixed.
Put up on 28.02.2020 for compliance of Section 43(5) of the Act."
4. Thereafter the matter was listed before the Tribunal on 28.02.2020 whereupon the Tribunal passed the below quoted order:
From the perusal of order sheet, it also transpires that cost amount Rs. 1,000/- has been imposed on 03.01.2020 and the same has not been deposited so far in the Tribunal's fund.
Applicant's counsel assured that he will deposit the cost amount during the course of day. After deposit the cost amount the file shall be put up before me today at 4:00 p.m."
5. The Tribunal has relied on the observations made by the Lucknow Bench of this Court in Second Appeal No.364 of 2018 (Radicon Infrastructure And Housing Private Limited Vs. Karan Dhyani) and Second Appeal No. 367 of 2018 (Radicon Infrastructure And Housing Private Limited Vs. Dhaneshwari Devi Dhyani), decided on 26.07.2019, to require the appellant to deposit the entire amount of disputed penalty as a condition to maintain the appeal.
6. The present appeal has been pressed on the following question of law:
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