High Court of Karnataka Dismisses Appeal Against Rejection of Plaint in Real Estate Dispute — RERA Bar Under Section 79 Applies to Civil Suits for Possession and Damages. The court held that a civil suit for possession and damages against a developer is barred by Section 79 of the Real Estate (Regulation and Development) Act, 2016, as the dispute falls within the purview of the Real Estate Regulatory Authority.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution

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2026-05-18 13:06:14

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Case Note & Summary

The case involves a dispute between M/s H.M. Infra Tech Pvt. Ltd. (formerly a partnership firm) and the H.M. Tamborine Apartments Owners Association along with individual apartment owners. The appellant, the developer, had filed a suit (O.S. No. 8454/2016) seeking possession of the apartment complex and damages from the owners' association and its members. The respondents filed an application under Order 7 Rule 11 read with Section 151 CPC and Section 79 of the Real Estate (Regulation and Development) Act, 2016 (RERA) for rejection of the plaint. The trial court allowed the application, rejecting the plaint on the ground that the suit was barred by Section 79 of RERA. The appellant challenged this order by filing a Regular First Appeal under Section 96 CPC. The respondents also filed a Miscellaneous First Appeal against an earlier order, but the main focus was on the RFA. The High Court upheld the trial court's order, holding that the dispute regarding possession and damages falls within the purview of RERA, and the civil court has no jurisdiction. The court dismissed the appeal, confirming the rejection of the plaint.

Headnote

A) Real Estate Law - Bar on Civil Suits - Section 79 of the Real Estate (Regulation and Development) Act, 2016 - The court considered whether a suit for possession and damages filed by an apartment owners' association against the developer is barred under Section 79 of RERA. The court held that the dispute regarding possession and damages is a matter which the Authority or Appellate Tribunal is empowered to determine under RERA, and therefore the civil court has no jurisdiction. The plaint was rejected under Order 7 Rule 11 CPC. (Paras 1-10)

B) Civil Procedure - Rejection of Plaint - Order 7 Rule 11 of the Code of Civil Procedure, 1908 - The court examined the application for rejection of plaint on the ground that the suit is barred by law. The court held that since the suit is barred under Section 79 of RERA, the plaint is liable to be rejected under Order 7 Rule 11(d) CPC. (Paras 5-10)

Issue of Consideration

Whether a civil suit for possession and damages filed by an apartment owners' association against a developer is barred under Section 79 of the Real Estate (Regulation and Development) Act, 2016, and whether the plaint is liable to be rejected under Order 7 Rule 11 of the Code of Civil Procedure, 1908.

Final Decision

The High Court dismissed the Regular First Appeal, confirming the trial court's order rejecting the plaint under Order 7 Rule 11 CPC read with Section 79 of RERA.

Law Points

Section 79 of RERA bars civil courts from entertaining suits in respect of matters which the Authority or the Appellate Tribunal is empowered to determine
Order 7 Rule 11 CPC for rejection of plaint when suit is barred by law
Section 96 CPC for appeals against decrees
Section 151 CPC for inherent powers

Case Details

2024 LawText (KAR) (12) 61

REGULAR FIRST APPEAL NO.2457/2024 (INJ) C/W MISCELLANEOUS FIRST APPEAL NO.5580/2017 (CPC)

2024-12-20

H.P. SANDESH

SRI UDAYA HOLLA, SENIOR COUNSEL FOR SRI VIVEK HOLLA, ADVOCATE; SRI D.R.RAVISHANKAR, SENIOR COUNSEL FOR SRI RAMA RAMACHANDRA IYER & SRI. P.V.MIRANDRA KUMAR, ADVOCATES FOR C/R1

M/S. H.M. INFRA TECH PVT. LTD.

H.M.TAMBORINE APARTMENTS OWNERS ASSOCIATION & ORS.

Nature of Litigation

Civil suit for possession and damages filed by developer against apartment owners' association and individual owners.

Remedy Sought

Appellant sought possession of the apartment complex and damages from the respondents.

Filing Reason

Dispute over possession of the apartment complex and alleged damages.

Previous Decisions

Trial court allowed I.A. No. 10 under Order 7 Rule 11 CPC and Section 79 RERA, rejecting the plaint.

Issues

Whether the civil suit is barred under Section 79 of the Real Estate (Regulation and Development) Act, 2016. Whether the plaint is liable to be rejected under Order 7 Rule 11 of the Code of Civil Procedure, 1908.

Submissions/Arguments

Appellant argued that the suit is maintainable and not barred by RERA. Respondents contended that the suit is barred under Section 79 of RERA as the dispute falls within the jurisdiction of the Real Estate Regulatory Authority.

Ratio Decidendi

A civil suit for possession and damages against a developer is barred under Section 79 of the Real Estate (Regulation and Development) Act, 2016, as the dispute is within the purview of the Real Estate Regulatory Authority. The plaint is liable to be rejected under Order 7 Rule 11(d) CPC.

Judgment Excerpts

The suit is barred under Section 79 of the Real Estate (Regulation and Development) Act, 2016. The plaint is liable to be rejected under Order 7 Rule 11 CPC.

Procedural History

The appellant filed O.S. No. 8454/2016 for possession and damages. The respondents filed I.A. No. 10 under Order 7 Rule 11 CPC and Section 79 RERA for rejection of plaint. The trial court allowed the application on 19.10.2024. The appellant filed RFA No. 2457/2024 under Section 96 CPC against that order. The respondents also filed MFA No. 5580/2017 against an earlier order. The High Court heard both appeals together and dismissed the RFA, disposing of the MFA as infructuous.