Bombay High Court Allows Writ Petition Seeking Enforcement of RERA Order and Grants Interim Relief of Deposit and Injunction Against Developer. RERA Order Directing Refund of Investment with Interest Must Be Complied With by Revenue Authorities and Developer.

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

The petitioner, Rustam Phiroze Mehta, filed a writ petition seeking enforcement of an order dated 15th April 2019 passed by the Maharashtra Real Estate Regulatory Authority (RERA) directing the Collector and Tahsildar to comply with its directions. The petitioner had invested in a real estate project of Respondent No.4, Marvel Sigma Homes Private Limited, and sought refund of the amount paid. RERA ordered refund with interest. The petitioner amended the petition to seek interim reliefs against Respondent No.4, including deposit of the admitted sum of Rs.11,36,33,625/- and restraint on alienation of properties. The court admitted the petition and considered interim reliefs. It held that the writ petition is maintainable for enforcement of a RERA order. On merits, the court found that Respondent No.4 admitted the liability and had not deposited the amount. The court directed Respondent No.4 to deposit the admitted amount within four weeks and restrained it from selling, transferring or creating third party rights in its movable or immovable properties pending disposal of the petition. The court found a prima facie case, balance of convenience in favor of the petitioner, and irreparable loss if interim relief was not granted.

Headnote

A) Real Estate Law - Enforcement of RERA Order - Writ Jurisdiction - Petitioner sought mandamus against revenue authorities to comply with RERA order directing refund of amount with interest - Court held that writ petition is maintainable for enforcement of RERA order and granted interim relief in aid of final relief - Held that RERA order is binding and revenue authorities must comply (Paras 1-10).

B) Real Estate Law - Interim Relief - Deposit of Admitted Amount - Respondent No.4 admitted liability of Rs.11,36,33,625/- - Court directed deposit of said amount within four weeks - Held that admitted amount must be deposited to protect petitioner's interests (Paras 3, 11-15).

C) Real Estate Law - Interim Relief - Restraint on Alienation - Prima facie case and balance of convenience in favor of petitioner - Court restrained Respondent No.4 from selling, transferring or creating third party rights in its properties - Held that interim injunction is necessary to prevent dissipation of assets (Paras 3, 16-20).

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Issue of Consideration

Whether the petitioner is entitled to interim reliefs of deposit of admitted amount and restraint on alienation of properties pending enforcement of a RERA order.

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Final Decision

The court directed Respondent No.4 to deposit the admitted sum of Rs.11,36,33,625/- within four weeks and restrained Respondent No.4 and its group companies from selling, transferring or creating third party rights in any of their movable or immovable properties pending disposal of the petition.

Law Points

  • RERA order is binding on revenue authorities
  • writ maintainable for enforcement of RERA order
  • interim relief in aid of final relief
  • balance of convenience
  • prima facie case
  • irreparable loss
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Case Details

2021 LawText (BOM) (07) 28

WRIT PETITION (ST) NO. 3221 OF 2020

2021-07-15

S.J. Kathawalla, Milind Jadhav

Mr. Sharan Jagtiani, Senior Advocate with Ms. Shradha Achliya, Ms. Vinsha Acharya, Mr. Ranjit Agashe i/b Ms. Namrata Agashe for the Petitioner; Mr. Kalel AGP for Respondent Nos. 1 to 3; Mr. Amit Gharte for Respondent No. 4

Rustam Phiroze Mehta

State of Maharashtra, The Collector Pune District, The Tahsildar Pune City, Marvel Sigma Homes Private Limited

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Nature of Litigation

Writ petition seeking enforcement of RERA order and interim reliefs against developer.

Remedy Sought

Mandamus against revenue authorities to comply with RERA order; interim relief of deposit of admitted amount and restraint on alienation of properties.

Filing Reason

Non-compliance of RERA order dated 15th April 2019 directing refund of amount with interest.

Previous Decisions

RERA order dated 15th April 2019; amendment allowed on 20th January 2021 to seek interim reliefs.

Issues

Whether the writ petition is maintainable for enforcement of a RERA order. Whether the petitioner is entitled to interim relief of deposit of admitted amount and restraint on alienation.

Submissions/Arguments

Petitioner argued that RERA order is binding and revenue authorities must comply; developer admitted liability of Rs.11,36,33,625/- but failed to deposit; interim relief necessary to prevent dissipation of assets. Respondent No.4 opposed interim relief, but admitted the amount payable.

Ratio Decidendi

A RERA order is enforceable through writ jurisdiction; when a developer admits liability, the court can direct deposit of the admitted amount and grant injunction to prevent alienation of assets to protect the petitioner's interests pending final relief.

Judgment Excerpts

By this Order, we will consider whether the Petitioner is entitled to the following interim reliefs as sought in the present Writ Petition... Respondent No.4 admitted liability of Rs.11,36,33,625/-.

Procedural History

Petition filed in 2020; amendment allowed on 20th January 2021 to add interim reliefs; admitted on 15th July 2021; interim relief granted on same day.

Acts & Sections

  • Real Estate (Regulation and Development) Act, 2016:
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