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2025 Supreme(All) 3241

HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
PANKAJ BHATIA, J.
Ratan Buildtech Private Limited - Appellant 
Versus 
Anil Kumar – Respondent
RERA Appeal No. 72 of 2025 CONNECTED WITH RERA APPEAL DEFECTIVE No.18 of 2025 AND RERA APPEAL DEFECTIVE No.19 of 2025, RERA APPEAL DEFECTIVE No.20 of 2025, RERA APPEAL DEFECTIVE No.25 of 2025, RERA APPEAL No. 41 of 2025, RERA APPEAL No. 42 of 2025, RERA APPEAL No.43 of 2025, RERA APPEAL No.44 of 2025, RERA APPEAL No. 45 of 2025 (Old RERA Appeal Defective No.21 of 2025), RERA APPEAL No. 70 of 2025, RERA APPEAL No.73 of 2025, RERA APPEAL No.74 of 2025, RERA APPEAL No.75 of 2025, RERA APPEAL No.76 of 2025, RERA APPEAL No.77 of 2025, RERA APPEAL No.78 of 2025, RERA APPEAL No.79 of 2025, RERA APPEAL No.80 of 2025, RERA APPEAL No.81 of 2025, RERA APPEAL No.82 of 2025, RERA APPEAL No.83 of 2025, RERA APPEAL No.84 of 2025, RERA APPEAL No.87 of 2025.
Decided On : 04-09-2025

Advocates Appeared:
For the Appellant : Prashant Kumar Singh.
For the Respondents: Awadhesh Kumar Misra, Piyush Tripathi.

The Tribunal has jurisdiction under RERA to grant interest and compensation for delays in property possession, emphasizing adherence to statutory provisions and the protection of allottee interests.

Headnote:(A) Real Estate (Regulation and Development) Act, 2016 - Sections 18 and 43 - Appeal against compensation awarded for delay in possession of property - Compensation was awarded to allottee for delay in possession, Appellant claimed jurisdictional error in granting compensation - The Appellate Tribunal determined interest due to allottee from 01.01.2020 to 13.10.2022 at MCLR + 1% and directed pre-deposit to be released upon verification - The Tribunal's powers to grant delay interest examined with respect to statutory provisions in RERA. (Paras 7, 20, 25, 32)

(B) Jurisdiction and Powers of the Regulatory Authority - Appellant argued the Adjudicating Authority had no jurisdiction to grant interest, which is vested solely with the Regulatory Authority - The Tribunal held it had the power to adjudicate on interest based on evidence presented. (Paras 6, 12, 39)

Facts of the case:
The appellant and respondent entered into a builder-buyer agreement; the respondent alleged delays and sought compensation, which the Adjudicating Authority initially granted. The Appellant contested the authority's decision citing jurisdiction questions and procedural errors.

Findings of Court:
The appeals against the Tribunal's decisions were dismissed, allowing the interest awarded by the Tribunal as reasonable per statutory mandates, affirming the order based on the specifics of the agreement and subsequent delays acknowledged.

Issues: Legal questions centered around the Tribunal's jurisdiction to grant interest, the nature of delay compensation, and whether compensation could be claimed directly from the Adjudicating Authority.

Ratio Decidendi: The Tribunal's authority under RERA to determine compensation based on evidentiary presentations is affirmed, underscoring statutory guidelines and the purpose behind RERA for protecting allottee rights in real estate transactions.

Result: All appeals dismissed.

Table of Content
1. arguments presented by the parties regarding interest and compensation. (Para 1 , 10 , 11 , 12)
2. nature of the complaint filed by allottee. (Para 4 , 9 , 19)
3. interpretation and implications of the rera act. (Para 21 , 22 , 25 , 26)
4. validity of interest claims under rera. (Para 39 , 42)
5. conclusion and final order of the court. (Para 43 , 44)

JUDGMENT :

PANKAJ BHATIA, J.

1. Heard Sri Sudeep Kumar along with Mahima Pahwa and Sri Prashant Kumar Singh, learned Counsels appearing on behalf of the appellants and Sri Azhar Ikram along with Sri Manish Singh, learned Counsels appearing on behalf of the respondents-allottee. Sri Azhar Ikram also appears on behalf of the appellant-allottee in RERA Appeal No.70 of 2025.

2. The RERA Appeal Defective No.18; RERA Appeal Defective No.19 of 2025; RERA Appeal Defective No.20 of 2025 and RERA Appeal Defective No.25 of 2025 have been filed along with an application for condonation of delay. The cause shown are sufficient. The applications for condonation of delay are allowed. The delay in filing the appeals are condoned.

3. All the abovesaid appeals arise out of the same judgment passed by the U.P. Real Estate Appellate Tribunal, as such, are being decided by means of this common judgment.

4. For the brevity, the facts as emerge from the RERA Appeal No.72 of 2025 are that the respondent was allotted an apartment by the appellant at NOIDA under a builder buyer agreement on 22.01.2019. It is stated that on 16.09.2022, completion certificate was issued by the Greater Noida Industrial Development Authority in favour of the promoter. It is further stated that on 11.10.2022, the respondent filed a complaint for grant of interest and compensation under Form-N prescribed under The Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as “the RERA Act”) before the Adjudicating Officer, Uttar Pradesh Real Estate Regulatory Authority at Gautam Budhnagar. In the said complaint, the allegations of incorrect and false information; delay in possession and failure to discharge duties as per the Act, Rules and Regulations were made. In the said complaint, it is also stated that the possession was not provided as per the agreement and the allegation of mental harassment was also made and on these grounds, the respondent sought compensation of Rs.6,00,000/-. The said complaint/ application was resisted by the appellant by filing an objection and the objections were raised with regard to the jurisdiction to grant delay interest or compensation, which according to the appellant could be done only by the Regulatory Authority. After considering the complaint and objections filed, the compensation was awarded by the Adjudicating Authority vide order dated 10.02.2023. The said order of the Adjudicating Authority was challenged by the appellant in Appeal No.438 of 2023 before the Real Estate Appellant Tribunal (hereinafter referred to as “the Tribunal”) seeking quashing of the judgment dated 10.02.2023 on various grounds. It is stated that the requirement of pre-deposit under Section 43 of the RERA Act was also fulfilled at the time of filing of the appeal.

5. From the perusal of the appeal memo filed before the Tribunal, a copy whereof is on record as Annexure-5 to the RERA Appeal No.72 of 2025, what transpires is that while filing the appeal, one of the main grounds taken before the Tribunal was that the interest and compensation has been awarded by the Adjudicating Authority, whereas, the power to grant compensation for delay is vested only with the Regulatory Authority in terms of the judgment of the Hon’ble Supreme Court in the case of Newtech Promoters and Developers Pvt. Ltd. vs State of U.P. (Civil Appeal No.6745-6749 of 2021). In paragraph 3 of the appeal filed before the Tribunal, it was stated that the grant of compensation was not justified as the same was without jurisdiction and was liable to be dismissed. In paragraph 6, it was specifically stated that the allottee ha

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