Case Note & Summary
The matter concerned multiple second appeals filed by M/s Man Global Ltd. Mumbai, a real estate promoter, before the High Court of Judicature at Bombay, challenging orders of the Maharashtra Real Estate Appellate Tribunal under the Real Estate (Regulation and Development) Act, 2016. The appeals fell into two groups. The first group of 18 second appeals challenged orders dated 10 June 2022 in sixteen appeals and 10 December 2022 in two appeals, by which the Appellate Tribunal had awarded interest to the respondent allottees for delay in handing over possession of apartments. The second group of 22 second appeals challenged an order dated 7 July 2021 by which the Appellate Tribunal dismissed appeals filed by the promoter for non-compliance with the pre-deposit requirement under Section 43(5) of the Act. The High Court heard the matters together on 10 July 2023. The appellant promoter was represented by senior counsel and other advocates, while the respondent allottees were represented by multiple counsel, with one respondent appearing in person. The appellant raised three substantial questions of law in the first group: whether delay caused by delays in obtaining No Objection Certificate and Occupation Certificate from the Municipal Corporation could be attributed to the promoter; whether allottees who approved extension of the date for handing over possession continued to be entitled to interest; and whether, for an ongoing project, the period of interest awarded could be retrospective to the date of registration and the new date of completion as per the declaration under Section 4(2)(c) read with Rule 4 of the RERA Act. In support, the appellant submitted that the project was a Rental Housing Scheme requiring permissions from two planning authorities, Mumbai Metropolitan Region Development Authority and Mira Bhaindar Municipal Corporation, and that delay occurred due to reasons beyond the promoter's reasonable control. The court recorded these submissions and the procedural background, but the provided judgment excerpt ends before the final analysis and operative decision. Therefore, the final ruling on the substantial questions of law and the validity of the impugned tribunal orders is not available in the text.
Headnote
A) Real Estate Law - Delay in Delivery of Possession - Attribution of Delay for No Objection Certificate and Occupation Certificate - Real Estate (Regulation and Development) Act, 2016, Section 4(2)(c) and Rule 4 - The appellant promoter raised a substantial question whether delay in handing over possession due to delays in receiving No Objection Certificate and Occupation Certificate from the Municipal Corporation could be attributed to it, given settled law that absence of Occupation Certificate makes handing over possession impermissible; the court heard submissions on this issue but the provided judgment excerpt does not contain final determination (Paras 5-6). B) Real Estate Law - Interest on Delayed Possession - Effect of Allottee's Approval of Extension - Real Estate (Regulation and Development) Act, 2016 - The appellant questioned whether allottees who approved extension of the date for handing over possession continue to remain entitled to claim interest; this substantial question of law was raised and argued before the High Court, but no final decision appears in the excerpt (Paras 5-6). C) Real Estate Law - Retrospective Interest on Ongoing Projects - Date of Registration and Completion under Statutory Declaration - Real Estate (Regulation and Development) Act, 2016, Section 4(2)(c) read with Rule 4 - The court considered whether, in respect of an ongoing project, the period of interest awarded could be retrospective to the date of registration and the new date of completion of the project as per declaration required to be made under section 4(2)(c) read with Rule 4 of RERA; the issue was raised as a substantial question of law and argued, but no final ruling is available in the provided text (Paras 5-6). D) Real Estate Law - Appellate Pre-Deposit Requirement - Dismissal for Non-Compliance - Real Estate (Regulation and Development) Act, 2016, Section 43(5) - In a separate group of 22 second appeals, the appellant challenged orders of the Maharashtra Real Estate Appellate Tribunal dated 7 July 2021 dismissing appeals for non-compliance with the pre-deposit requirement under Section 43(5) of RERA; the High Court heard submissions from both sides on this issue, but the final decision is not included in the excerpt (Paras 2, 4).
Issue of Consideration
Whether delay in handing over possession due to delays in receiving No Objection Certificate and Occupation Certificate from the Municipal Corporation can be attributed to the promoter; whether allottees who approved extension of the date for handing over possession continue to be entitled to interest; whether interest for an ongoing project can be awarded retrospectively to the date of registration and the new date of completion under Section 4(2)(c) read with Rule 4 of RERA; and whether dismissal of appeals by the Appellate Tribunal for non-compliance of Section 43(5) RERA is valid.
