IN THE HIGH COURT OF ALLAHABAD
DEVENDRA KUMAR UPADHYAYA, SUBHASH VIDYARTHI, JJ.
Emaar India Ltd. Thru. Authorized Representative Mr. Ashish Singh, Lko. - Petitioner
Versus
State Of U.P. Deptt. Of Housing And Urban Planning Devlp. Thru. Addl.Chief Secy. Lko. And Others - Respondents
Writ C. No. 2071 Of 2022
Decided On : 30-09-2022
Force Majeure - Real Estate Development - Act 2016, Section 6, Rule 7 - The court considered the extension of registration under the Act 2016 due to force majeure and reasonable circumstances without default on the part of the promoter. The court found that the delay in completion of the project was not attributable to the Lucknow Development Authority or the State Government as the petitioner-company already possessed more land than the registered project area. The court held that the alleged non-fulfillment of contractual obligations did not constitute force majeure as per the Act 2016. The court concluded that further extension of registration may not be permissible. The court also clarified that the action under section 8 of the Act 2016 shall finally precipitate only in consultation with the State Government and that no final action had yet been taken.
Fact of the Case:
The petitioner-company sought writs directing the resolution of land-related issues and extension of project registration. The State Government promulgated a policy for land acquisition for residential projects, and the petitioner-company was granted a license for a housing scheme. The Real Estate (Regulation and Development) Act, 2016 was passed, and the project was registered with U.P. Real Estate Regulatory Authority. The registration was extended multiple times due to force majeure, but eventually lapsed. The Authority issued a notice to the petitioner-company under section 8 of the Act 2016.
Finding of the Court:
The court found that the delay in completion of the project was not attributable to the Lucknow Development Authority or the State Government. The court concluded that further extension of registration may not be permissible. The court clarified that the action under section 8 of the Act 2016 shall finally precipitate only in consultation with the State Government and that no final action had yet been taken. The court directed the petitioner-company to furnish an additional reply to the Authority for consideration in determining appropriate action for completion of the remaining development work.
Issues: The issues involved the extension of project registration, the attribution of delay in completion of the project, and the action under section 8 of the Act 2016.
Ratio Decidendi: The court held that the delay in completion of the project was not attributable to the Lucknow Development Authority or the State Government. The court concluded that further extension of registration may not be permissible. The court clarified that the action under section 8 of the Act 2016 shall finally precipitate only in consultation with the State Government and that no final action had yet been taken.
Final Decision: The court directed the petitioner-company to furnish an additional reply to the Authority for consideration in determining appropriate action for completion of the remaining development work. The court also directed the petitioner-company to approach the competent authority in Lucknow Development Authority and the State Government for resolution of any dispute in terms of the provisions contained in the Development Agreement.
JUDGMENT :
1. Heard Shri Satish Chandra Misra, learned Senior Advocate, assisted by Shri Sunil Kumar Singh and Shri Kapil Misra, learned counsel representing the petitioner-company, learned State Counsel representing the State of Uttar Pradesh, Shri Anil Kumar Tiwari, learned Senior Advocate, assisted by Shri Shobhit Mohan Shukla, learned counsel representing Uttar Pradesh Real Estate Regulatory Authority and Shri Ratnesh Chandra, learned counsel representing the Lucknow Development Authority.
2. These proceedings under Article 226 of the Constitution of India have been instituted by the petitioner-company with the following prayers;
(b) Issue a writ of mandamus or any other appropriate writ directing the Respondent No.2/UP RERA to consider the duration of non-action/inaction of/ on the part of the Respondent No.3/LDA in providing and making available the land to the petitioner from 2012 to 2022 as 'Zero Period' with respect to completion and handover of the land for timely completion of the Project.
(c) Issue a writ of mandamus or any other appropriate writ directing the Respondent No.2/UP RERA to consider the period from March, 2020February, 2022 as 'Zero Period' with respect to completion and handover of the land for timely completion of the Project.
(d) Issue a writ of mandamus or any other appropriate writ order directing the Respondent No.2/UP RERA to consider the representation dated 27th January, 2022 in its letter and spirit and extend the Registration of the Project of the petitioner-Company in view of the land and legal issues and other issues and concerns elaborated by the Petitioner-Company in the said representation and also as otherwise submitted to Respondent No.2/UP RERA and the same shall be valid in prospective.
(e). Issue a writ of certiorari or any other appropriate writ order or direction to the Respondent No.2/UP RERA directing and declaring that there is no requirement of approval of allottees in case of lapse/revocation of Registration and the procedure followed by Respondent No.2/UP RERA is in violation of RERA Act and the Rules made thereunder as there is no provision under the said Act and the Rules requiring such requirement."
3. The facts of the case, as submitted by the learned counsel representing the respective parties and culled out from the pleadings available on record, are as follows.
4. The State Government promulgated a policy for acquisition of land for residential projects and its development in the urban areas of the State of Uttar Pradesh through investment by the private sector. The said policy is embodied in the Government Order dated 21.05.2005.
5. The aforesaid policy by the State Government was issued considering the ever increasing pressure on housing and infrastructure facilities in the urban areas of the State of U.P. on account of accelerated urbanization. The said policy envisages the role of the State Government as a facilitator rather than a developer. The policy further lays emphasis on solving the problems and stumbling blocks being felt in the development and construction work by private sector and also for simplification of the processes. The object of the policy contained in the Government Order dated 21.05.2005 is also to invite and encourage investment of capital by the private sector.
The main legal point established in the judgment is that the delay in completion of the project was not attributable to the Lucknow Development Authority or the State Government, and further extensio....
The main legal principle established in the judgment is the interpretation and application of the definition of 'ongoing project' under Rule 2(h) of the Uttar Pradesh Real Estate (Regulation and Deve....
The RERA Act applies to ongoing real estate projects, and the Act's provisions protect the rights of stakeholders, including home buyers and promoters.
The main legal point established in the judgment is the retrospective or retroactive operation of RERA, 2016, and the mandatory registration requirement for ongoing projects with completion certifica....
The definition of 'promoter' under RERA allows for developers without land ownership to register projects, and failure by UPRERA to act within statutory timeframes results in deemed registration.
The Act, 2016 is retroactive in operation, and the court clarified the requirements for project registration, the validity of completion certificates, and the procedure for imposing penalties.
The Real Estate (Regulation and Development) Act mandates registration for ongoing projects, where completion certificates are absent, emphasizing consumer protection in real estate transactions.
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