Supreme Court Dismisses Promoter's Appeals in Consumer Disputes Under RERA Due to Binding Precedent on Remedies for Delayed Possession. The National Commission's Reliance on Imperia Structures Ltd. v. Anil Patni & Another Was Upheld, as Section 18 of the Real Estate (Regulation and Development) Act, 2016 Provides Allottees Unqualified Rights to Refund or Interest for Delay.

  • 11
Judgement Image
Font size:
Print

Case Note & Summary

The appeal arose from a judgment and order dated 11.10.2021 passed by the National Consumer Disputes Redressal Commission in Consumer Case No.1043 of 2018 and other related cases. The National Commission had relied on the Supreme Court's decision in Imperia Structures Ltd. v. Anil Patni & Another, which interpreted Section 18 of the Real Estate (Regulation and Development) Act, 2016. The legal issue centered on whether the National Commission correctly applied this precedent in dismissing the consumer cases. The appellant, a promoter, challenged the dismissal, while the respondents, allottees, likely supported the National Commission's reliance on the precedent. The Supreme Court analyzed the precedent, noting that Section 18 of the RERA Act provides allottees with an unqualified right to either withdraw from the project and claim a refund with interest or claim interest for delay until possession, without prejudice to other remedies. The court reasoned that since the National Commission had followed this binding decision, there was no error warranting interference. Consequently, the Supreme Court dismissed the civil appeals, upholding the National Commission's judgment and order.

Headnote

A) Consumer Law - Real Estate Regulation - Remedies for Delayed Possession - Real Estate (Regulation and Development) Act, 2016, Section 18 - The National Commission relied on the Supreme Court's decision in Imperia Structures Ltd. v. Anil Patni & Another, which interpreted Section 18 of the RERA Act as providing allottees an unqualified right to either withdraw from the project and claim refund with interest or claim interest for delay till possession, without prejudice to other remedies - Held that since the National Commission followed this binding precedent, there was no reason to entertain the appeals, and they were dismissed (Paras 1-2).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the National Consumer Disputes Redressal Commission correctly applied the law in dismissing consumer cases based on the precedent set in Imperia Structures Ltd. v. Anil Patni & Another regarding remedies under Section 18 of the Real Estate (Regulation and Development) Act, 2016

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Civil Appeals are dismissed, upholding the judgment and order of the National Consumer Disputes Redressal Commission dated 11.10.2021, with no costs

Law Points

  • Section 18 of the Real Estate (Regulation and Development) Act
  • 2016 provides unqualified right to allottees for refund with interest or interest for delay
  • as per choice
  • without prejudice to other remedies
  • and lower tribunal decisions following binding precedent are not interfered with
Subscribe to unlock Law Points Subscribe Now

Case Details

2022 Lawtext (SC) (3) 101

Civil Appeal Nos.1899-1906 of 2022, Civil Appeal No.1816/2022

2022-03-28

Uday Umesh Lalit, S. Ravindra Bhat, Pamidighantam Sri Narasimha

Ms. Pinaki Misra, Sr. Adv., Mr. Pravin Bahadur, Adv., Mr. Amit Agarwal, Adv., Ms. Kanika Gomber, Adv., Mr. Saurabh Kumar, Adv., Mr. S. Anjani Kumar, Adv., Mr. Navin Kumar Sehrawat, Adv., Mr. Vishnu Kant, AOR, Mr. Rahul Sharma, Adv., Mr. S. Santanam Swaminadhan, Adv., Ms. Abhilasha Shrawat, Adv., Mr. Kartik Malhotra, Adv., Mr. Prabhash Malik, Adv., Ms. Aarthi Rajan, Adv., Ms. Aarthi Rajan, AOR

M/s. Imperia Structure Ltd.

Baljor Singh Jakhar etc., Brig. Harit Pant

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Consumer disputes regarding delayed possession of apartments under real estate projects

Remedy Sought

Appellant sought to challenge the dismissal of consumer cases by the National Commission, while respondents likely sought enforcement of remedies under RERA

Filing Reason

Appeal against the judgment and order of the National Consumer Disputes Redressal Commission dated 11.10.2021

Previous Decisions

National Commission dismissed consumer cases relying on Imperia Structures Ltd. v. Anil Patni & Another

Issues

Whether the National Commission correctly applied the law in dismissing consumer cases based on the precedent set in Imperia Structures Ltd. v. Anil Patni & Another regarding remedies under Section 18 of the Real Estate (Regulation and Development) Act, 2016

Ratio Decidendi

When a lower tribunal follows a binding precedent of the Supreme Court interpreting statutory provisions, such as Section 18 of the Real Estate (Regulation and Development) Act, 2016, which grants allottees unqualified rights to remedies for delayed possession, the Supreme Court will not interfere with the tribunal's decision, leading to dismissal of appeals

Judgment Excerpts

In terms of Section 18 of the RERA Act, if a promoter fails to complete or is unable to give possession of an apartment duly completed by the date specified in the agreement, the promoter would be liable, on demand, to return the amount received by him in respect of that apartment if the allottee wishes to withdraw from the Project. The right so given to the allottee is unqualified and if availed, the money deposited by the allottee has to be refunded with interest at such rate as may be prescribed. Since the National Commission has followed the decision of this Court in Imperia Structures Ltd. (supra), we see no reason to entertain this appeal.

Procedural History

Appeal filed against judgment and order dated 11.10.2021 of the National Consumer Disputes Redressal Commission; Supreme Court heard appeals on 28-03-2022 and dismissed them

Acts & Sections

  • Real Estate (Regulation and Development) Act, 2016: Section 18
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Dismisses Promoter's Appeals in Consumer Disputes Under RERA Due to Binding Precedent on Remedies for Delayed Possession. The National Commission's Reliance on Imperia Structures Ltd. v. Anil Patni & Another Was Upheld, as Section 18 of...
Related Judgement
High Court Deemed Conveyance Order Under MOFA. Petitioner seeks to quash the deemed conveyance granted to housing society, citing violation of a 2009 Consent Decree on land development and ownership.