IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
SUBODH ABHYANKAR, J.
G. S. Enterprises, Indore And Others – Appellants
Versus
Yogesh Agrawal – Respondent
S. A. No. 1053 of 2021
Decided on : 29-08-2023
| Table of Content |
|---|
| 1. jurisdiction of real estate appellate tribunal. (Para 2 , 3) |
| 2. factual basis of the appeal. (Para 6 , 7) |
| 3. arguments on the appellate tribunal's constitution. (Para 8 , 9 , 10 , 11) |
| 4. implications of tribunal's composition on judgments. (Para 24 , 25 , 31) |
| 5. outcome of the appeal and further proceedings. (Para 32 , 34) |
JUDGMENT :
Heard finally, with the consent of the parties.
2. This civil second appeal has been filed under section 58 of the Real Estate (Regulation and Development) Act, 2016 (in short ‘the Act of 2016’) and under section 100 of the Code of Civil Procedure, 1908 against the judgment dated 7-6-2021, passed by Member, Madhya Pradesh Real Estate Appellate Tribunal at Bhopal in Appeal No. A-135/2019, thereby reversing the order dated 10-6-2019, passed by the M.P. Real Estate Regulatory Authority (in short, RERA) in Case No. M-IND-17-0761 of 2017.
3. This appeal was admitted by this Court vide order dated 5-10-2021, on the following substantial question of law :—
4. Counsel for the appellants has filed an application I. A. No. 3758 of 2023 under proviso to section 100(5) of C.P.C. Raising additional substantial questions of law, which read as under :—
(3) Whether the impugned order passed by single member of the bench, be said to be an order passed by appellate tribunal under section 43(3) of the Real Estate (Regulation and Development) Act, 2016?”
5. The aforesaid application is allowed, and the aforesaid substantial questions of law are also hereby framed. Since a copy of this application was already served to the Sr. counsel for the respondent, who has also advanced his submissions on the said substantial questions of law as well.
6. In brief, the facts of the case are that the appellants are a registered partnership firm and are engaged in the business of construction and development of Real Estate Projects, whereas the respondent is the practicing Chartered Accountant in Indore, who had paid a sum of Rs. 3,70,000/- on 16-4-2016, to the appellants as a part payment towards its booking for unit No. 414 to the forthcoming project of the appellants, namely, “Sky Corporate Park” to be developed on plot No. 25, Scheme No. 78-II, A. B. Road, Indore.
7. The dispute between the parties was that according to the respondent, the cost of the unit was Rs. 37 lakhs, whereas according to the appellants, it was Rs. 42,65,000/-, and other charges. Thus, a complaint was filed by the respondent before the Madhya Pradesh Real Estate Regulatory Authority (hereinafter referred to as ‘RERA’) in which a reply was also filed by the appellants. The RERA has decided the complaint vide its order dated 16-4-2018, in favour of the respondent, and being aggrieved of the same, the Appeal No. 34/2018 was preferred by the appellants before the Madhya Pradesh Real Estate Appellate Tribunal at Bhopal (hereinafter referred to as ‘Appellate Tribunal’), who vide its judgment dated 23-1-2019, remanded the matter back to RERA to decide afresh on merits of the case. After it was remanded back, the RERA has passed the order on 10-6-2019, now, in favour of the appellants. The aforesaid order was again challenged by the respondent in an appeal before the Appellate Tribunal, which has been allowed by the Tribunal vide its impugned order dated 7-6-2021, and being aggrieved of the same, the present a
Judgments must be delivered by the Bench that conducted the hearing; failing this constitutes a nullity, violating fundamental principles of judicial procedure.
The Real Estate Appellate Tribunal's orders are invalid if not composed according to statutory requirements, necessitating both a Judicial Member and a Technical Member for valid adjudication.
The jurisdiction of the Real Estate Appellate Tribunal was affirmed, directing adjudication of compensation claims based on statutory authority under RERA.
An Appellate Tribunal has the authority to appoint a Commission for evidence gathering as per its powers under the Real Estate Act, beyond strict CPC adherence.
The remand order should be for the purpose of hearing alone based on the enquiry already done, and there was no need to start a fresh enquiry in the proceedings before the Regulatory Authority.
Point of law: constitution of the Authority as prescribed in Section 21 of the Act is for the establishment of an Authority as a body corporate under Section 20 of the Act for discharge of its variou....
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