Bombay High Court Allows Restoration of RERA Appeals Dismissed for Non-Filing of Hard Copies. Procedural Compliance Must Not Override Substantial Justice Under Section 58 of RERA Act.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The judgment arises from three second appeals filed under Section 58 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act) by Kailash Patil, a developer/promoter, against orders of the Maharashtra Real Estate Appellate Tribunal, Mumbai. The respondents are allottees of a residential project who had filed complaints before the Regulatory Authority, which passed an order against the appellant. Aggrieved, the appellant filed appeals online within the limitation period under Section 44(2) of the RERA Act, challenging the common order dated 28th February 2018 passed by the Maharashtra Real Estate Regulatory Authority. However, the appellant failed to file hard copies of the appeal memos along with attachments within the prescribed time. On 13th May 2019, the Appellate Tribunal observed that since hard copies were not submitted and the appellant did not attend any hearing, it was evident that the appellant was not interested in prosecuting the appeals, and consequently dismissed the appeals. The appellant filed restoration applications (M.A. Nos. 698-700 of 2022) seeking permission to file hard copies and restore the appeals, but the Appellate Tribunal dismissed those applications as well. The core legal issue was whether the Appellate Tribunal was justified in rejecting the appeals and the restoration applications on the ground of non-filing of hard copies. The appellant argued that the appeals were filed online within limitation and the failure to file hard copies was a procedural lapse that should be condoned in the interest of justice. The respondents contended that the Tribunal's order was correct as the appellant had not complied with procedural requirements. The High Court analyzed the provisions of the RERA Act and the Limitation Act, 1963, and held that the Tribunal ought to have considered the restoration application on merits rather than dismissing it solely on the ground of non-filing of hard copies. The Court emphasized that procedural compliance should not override substantial justice, especially when the appeals were filed within limitation. The High Court set aside the impugned order of the Appellate Tribunal and remanded the matter back to the Tribunal for fresh consideration of the restoration applications on merits, directing the Tribunal to decide the same expeditiously. The appeals were allowed accordingly.

Headnote

A) Real Estate Law - RERA Appeal - Filing of Hard Copies - Section 58, Real Estate (Regulation and Development) Act, 2016 - The issue was whether the Appellate Tribunal was justified in dismissing appeals for non-filing of hard copies after online filing within limitation. The High Court held that the Tribunal ought to have considered the restoration application on merits and not dismissed it solely on the ground of non-filing of hard copies, as the appeals were filed within time and the appellant had shown sufficient cause for the delay. (Paras 2-10)

B) Procedural Law - Restoration of Appeal - Condonation of Delay - Section 5, Limitation Act, 1963 - The Court held that the Tribunal should have condoned the delay in filing hard copies and restored the appeals, as the appellant had filed the appeals online within limitation and the failure to file hard copies was a procedural lapse that could be condoned in the interest of justice. (Paras 8-10)

C) Real Estate Law - Appellate Tribunal Powers - Restoration - Section 58, RERA Act - The High Court held that the Appellate Tribunal has the power to restore appeals dismissed for default, and the Tribunal's refusal to consider the restoration application on merits was erroneous. The matter was remanded back to the Tribunal for fresh consideration. (Paras 9-10)

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Issue of Consideration

Whether the Appellate Tribunal was justified in rejecting the appeal on the ground that the Appellant failed to file hard copies of the appeal memos and in dismissing the restoration application filed by the Appellant for seeking permission to file the hard copies and restore the appeals.

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Final Decision

The High Court allowed the appeals, set aside the impugned order of the Appellate Tribunal, and remanded the matter back to the Tribunal for fresh consideration of the restoration applications on merits, directing the Tribunal to decide the same expeditiously.

Law Points

  • Substantial compliance
  • procedural justice
  • restoration of appeal
  • condonation of delay
  • RERA Act Section 58
  • Appellate Tribunal powers
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Case Details

2023 LawText (BOM) (08) 112

Second Appeal No.301 of 2023 with Interim Application No.4105 of 2023, Second Appeal No.303 of 2023 with Interim Application No.4107 of 2023, Second Appeal No.311 of 2023 with Interim Application No.4131 of 2023

2023-08-31

Jitendra Jain, J.

2023:BHC-AS:25005

Mr. Dilip Satle, a/w. Ms. Nikita Mandoniyan, i/b. Mr. Anwar Landge, for the Appellant/Applicant; Mr. Tejas Deshmukh, a/w. Mr. Anshuman Deshmukh and Mrs. K. Mahuli, for the Respondent in SA/301/2023 and SA/311/2023; Mr. Aditya R. Deolekar, i/b. Trsna Legal, for the Respondent in SA/303/2023

Kailash Patil

Vasant S. Jadhav, Ashish Gurav, Naresh Patil

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Nature of Litigation

Civil appeals under Section 58 of the Real Estate (Regulation and Development) Act, 2016 challenging the order of the Maharashtra Real Estate Appellate Tribunal dismissing appeals for non-filing of hard copies.

Remedy Sought

The appellant sought restoration of the appeals dismissed for non-filing of hard copies and permission to file hard copies.

Filing Reason

The appellant filed appeals online within limitation against the order of the Regulatory Authority but failed to file hard copies, leading to dismissal of the appeals.

Previous Decisions

The Regulatory Authority passed an order against the appellant on 28th February 2018. The Appellate Tribunal dismissed the appeals on 13th May 2019 for non-filing of hard copies and non-appearance. The restoration applications were also dismissed.

Issues

Whether the Appellate Tribunal was justified in rejecting the appeal on the ground that the Appellant failed to file hard copies of the appeal memos. Whether the Appellate Tribunal was justified in dismissing the restoration application filed by the Appellant for seeking permission to file the hard copies and restore the appeals.

Submissions/Arguments

The appellant argued that the appeals were filed online within limitation and the failure to file hard copies was a procedural lapse that should be condoned in the interest of justice. The respondents contended that the Tribunal's order was correct as the appellant had not complied with procedural requirements and showed lack of interest.

Ratio Decidendi

The Appellate Tribunal ought to have considered the restoration application on merits rather than dismissing it solely on the ground of non-filing of hard copies, as the appeals were filed within limitation and procedural compliance should not override substantial justice.

Judgment Excerpts

Whether the Appellate Tribunal was justified in rejecting the appeal on the ground that the Appellant has failed to file the hard copies of the appeal memos and further the Appellate Tribunal was justified in dismissing the restoration application filed by the Appellant for seeking permission to file the hard copies and restore the appeals ? The appeals are admitted on following reframed question of law:

Procedural History

The Regulatory Authority passed an order against the appellant on 28th February 2018. The appellant filed appeals online within limitation. On 13th May 2019, the Appellate Tribunal dismissed the appeals for non-filing of hard copies and non-appearance. The appellant filed restoration applications (M.A. Nos. 698-700 of 2022) which were also dismissed. The appellant then filed the present second appeals under Section 58 of the RERA Act.

Acts & Sections

  • Real Estate (Regulation and Development) Act, 2016: Section 58, Section 44(2)
  • Limitation Act, 1963: Section 5
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High Court Bombay High Court Allows Restoration of RERA Appeals Dismissed for Non-Filing of Hard Copies. Procedural Compliance Must Not Override Substantial Justice Under Section 58 of RERA Act.
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