Supreme Court Disposes of Contempt Petitions in Real Estate Dispute After Developer Undertakes to Pay Dues. Court Directs Joint Working of Payment Modalities for Specific Flat Buyer and Ensures Compliance with Earlier Order Dated 21 January 2022.

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Case Note & Summary

The Supreme Court of India heard contempt petitions filed by flat buyers against a developer regarding non-payment of dues. The petitioners were flat buyers who had initiated contempt proceedings against the developer for alleged non-compliance with earlier court orders. The factual background involved ongoing litigation where flat buyers sought payment of dues from the developer, with previous orders having been passed by the court on 21 January 2022 in Contempt Petition (Civil) No. 923 of 2021. The core legal issue before the court was whether the contempt petitions should be disposed of given the developer's undertaking to pay the computed dues. During the hearing, Mr. Gaurav Agarwal, acting as Amicus Curiae, placed on record a computation of dues payable to the flat buyers. Mr. Rishabh Parikh, counsel for the developer, stated that this computation had been worked out in consultation with representatives of the flat buyers and that the amount would be paid on or before 28 February 2022, in accordance with the earlier order dated 21 January 2022. The court's analysis focused on ensuring compliance with its previous orders and securing payment to the aggrieved flat buyers. The court directed that specific modalities for payment of dues to Mr. Sandeep Jain, following the earlier order, should be worked out jointly by the Amicus Curiae, the representative of the developer, and the flat buyer. The court ultimately disposed of the contempt petitions based on the developer's undertaking to make payment by the specified date, with all pending applications also being disposed of.

Headnote

A) Civil Procedure - Contempt Jurisdiction - Enforcement of Court Orders - Contempt of Courts Act, 1971 - Contempt petitions were filed regarding non-compliance with earlier court orders concerning payment of dues to flat buyers - The court disposed of the contempt petitions after the developer's counsel stated that computed dues would be paid by 28 February 2022 as per earlier order - Held that the contempt petitions are disposed of in terms of the signed order (Paras 1-5).

B) Civil Law - Real Estate Disputes - Payment of Dues - Real Estate (Regulation and Development) Act, 2016 - Flat buyers sought payment of dues from the developer in contempt proceedings - The Amicus Curiae placed computation of dues payable to petitioners (flat buyers) on record - The court directed that modalities for payment of dues to one specific flat buyer (Mr. Sandeep Jain) be worked out jointly by Amicus Curiae, developer representative, and flat buyer (Paras 1-3).

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Issue of Consideration

Whether the contempt petitions should be disposed of based on the developer's undertaking to pay computed dues to flat buyers by a specified date

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Final Decision

The contempt petitions are disposed of in terms of the signed order. The court directed that modalities for payment of dues to Mr. Sandeep Jain shall be worked out jointly by the Amicus Curiae, the representative of the developer, and the flat buyer. All pending applications stand disposed of.

Law Points

  • Contempt of court jurisdiction
  • enforcement of court orders
  • computation of dues
  • payment modalities
  • disposal of contempt petitions
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Case Details

2022 Lawtext (SC) (1) 72

CONMT.PET.(C) No.16/2022 in C.A. No.5041/2021, CONMT.PET.(C) No.17/2022 in C.A. No.5041/2021, CONMT.PET.(C) No.18/2022 in C.A. No.5041/2021

2022-01-27

Dr. Justice D.Y. Chandrachud, Mr. Justice Sanjiv Khanna

Mr. Gaurav Agrawal, Mr. Prashant Katara, Mr. Soin Khan, Mr. Gopal Balwant Sathe, Ms. Prachi Mishra, Mr. Chaitanya Bansal, Mr. Arjun Garg, Mr. Atul Kumar, Mr. Abhimanyu Sharma, Ms. Deepali, Pulak Bagchi, Mr. S.K. Verma, Mr. Rishabh Parikh, Mr. Mahesh Agarwal, Mr. S. Sahil Reddy

Raj Kapoor & Ors.

Ram Kishor Arora & Ors.

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Nature of Litigation

Contempt petitions filed by flat buyers against developer for non-payment of dues

Remedy Sought

Flat buyers seeking enforcement of earlier court orders regarding payment of dues

Filing Reason

Alleged non-compliance by developer with earlier court orders concerning payment to flat buyers

Previous Decisions

Earlier order passed by the Supreme Court on 21 January 2022 in Contempt Petition (Civil) No. 923 of 2021

Issues

Whether the contempt petitions should be disposed of based on the developer's undertaking to pay computed dues by specified date

Submissions/Arguments

Amicus Curiae placed computation of dues payable to flat buyers on record Developer's counsel stated computation was worked out with flat buyers' representatives and amount would be paid by 28 February 2022 as per earlier order

Ratio Decidendi

Contempt petitions can be disposed of when the contemnor undertakes to comply with court orders by a specified date, and payment modalities for specific claimants should be worked out jointly by relevant parties.

Judgment Excerpts

Mr Gaurav Agarwal, Amicus Curiae has placed on the record a computation of the dues which are payable to the petitioners, who are flat buyers Mr Rishabh Parikh, counsel appears on behalf of the developer and states that the computation was worked out in consultation with the representatives of the flat buyers and the amount would be paid on or before 28 February 2022 The modalities for the payment of the dues owing to Mr Sandeep Jain, following the earlier order of this Court, shall be worked out jointly by (i) the Amicus Curiae; (ii) the representative of the developer; and (iii) the flat buyer The contempt petitions are disposed of

Procedural History

Earlier order passed by Supreme Court on 21 January 2022 in Contempt Petition (Civil) No. 923 of 2021; Contempt petitions CONMT.PET.(C) Nos. 16/2022, 17/2022, and 18/2022 in C.A. No.5041/2021 heard on 27 January 2022; Court disposed of contempt petitions based on developer's undertaking to pay dues by 28 February 2022

Acts & Sections

  • Contempt of Courts Act, 1971:
  • Real Estate (Regulation and Development) Act, 2016:
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