Advocate Prerit Goyal

13/11/2021

*GOOD NEWS*

In a landmark judgement delivered yesterday, the Hon’ble Supreme Court has dismissed all writ petitions of builders challenging the jurisdiction of UPRERA on various points. The judgment is comprehensively in favour of the allottees. The Hon’ble Supreme Court has held:

1. *RERA applies even to ongoing projects which have not received a completion certificate*. (Builders’ argument that it should apply only to new projects was rejected.)

2. *RERA Authority has the jurisdiction to direct refund of monies*. (Builders’ argument that this power is with Adjudicating Officer was rejected.)

3. *RERA Authority can delegate power to decide to a single member*. (Builders’ argument that RERA Authority cannot exercise powers through a single member sitting alone was rejected.)

4. *Condition of pre-deposit under section 43(5) is valid*. (Builders’ argument that this pre-condition was harsh was rejected.)

5. *RERA Authority has the power to issue recovery certificate for recovery of principal amount also*. (Builders’ argument that recovery certificate cannot be issued for recovery of principal amount was rejected.)

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12/11/2021

17/10/2021

Constitution Bench of Supreme Court observed in the case of L. Chandra Kumar v. Union of India, (1997) 3 SCC 261, that the Tribunals created pursuant to Article 323-A or under Article 323-B of the Constitution of India are competent to hear matters entrusted to them and will continue to act as only Courts of ‘first instance’ in respect of the areas of law for which they have been constituted.

Insofar as the jurisdiction of the High Courts is concerned, Supreme Court further observed that the jurisdiction conferred upon the High Courts under Articles 226/227 and upon the Supreme Court under Article 32 of the Constitution of India, is a part of the inviolable basic structure of the Constitution.

While this jurisdiction cannot be ousted, other Courts and Tribunals may perform a supplemental role in discharging the powers conferred on the High Courts and the Supreme Court.

Thus, in view of the above stated Supreme Court decision, High Court cannot entertain the present petition and remedy of the petitioner lies only before the CAT. [Prabhat Ranjan Deo v. UPSC, 2020 SCC OnLine Del 738 , decided on 13-07-2020]