Bombay High Court Allows Second Appeals in RERA Execution Case, Holding Order XXI Rule 32(5) CPC Applicable. The court set aside the Appellate Tribunal's order disallowing amendment to execution applications seeking construction by decree holders at promoter's cost.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The case involves five second appeals filed by allottees (Rajan Chandiramani, Jagruti Parikh and Anr., Priyanka Waghela, Srichand Makhija, and Jayesh Jagdish Thakkar) against a common order dated 10 July 2025 passed by the Maharashtra Real Estate Appellate Tribunal. The Tribunal had disallowed the amendment sought by the appellants in their execution applications to the extent that they sought a direction that the construction of the real estate project 'Shri Vallabh Residency' be done by the decree holders or such other persons appointed by the Tribunal at the cost of the judgment debtor (Swadhinta Builders LLP), and the expenses thereof be ascertained and recovered from the judgment debtor as if it were included in the decree, so as to execute the decree in the manner provided under Order XXI Rule 32(5) of the Code of Civil Procedure, 1908. The background facts are that the appellants were allotted apartments in the project, but the promoter failed to complete construction and deliver possession. The appellants filed complaints before the Maharashtra Real Estate Regulatory Authority, which passed orders directing the promoter to complete construction and execute agreements. The promoter failed to comply, and the appellants obtained decrees from the Authority under Section 37 read with Section 40 of the Real Estate (Regulation and Development) Act, 2016 (RERA). The decrees directed the promoter to complete construction and hand over possession. The promoter did not comply, and the appellants filed execution applications before the Appellate Tribunal. During execution, the appellants sought to amend the execution applications to include a prayer for execution under Order XXI Rule 32(5) CPC, which allows the decree holder to have the work done at the cost of the judgment debtor. The Tribunal disallowed the amendment, holding that the provisions of Order XXI Rule 32(5) CPC are not applicable to RERA execution proceedings. The High Court framed substantial questions of law regarding the applicability of Order XXI Rule 32(5) CPC to RERA execution proceedings and the power of the Tribunal to allow such execution. The court held that the provisions of Order XXI Rule 32(5) CPC are applicable to execution of RERA decrees, as RERA does not provide a complete code for execution and the Code of Civil Procedure applies by virtue of Section 88 and 89 of RERA. The court also held that the Tribunal has inherent powers under Section 151 CPC to allow the amendment. The court allowed the appeals, set aside the impugned order, and directed the Tribunal to consider the execution applications afresh, including the prayer for execution under Order XXI Rule 32(5) CPC.

Headnote

A) Real Estate Law - Execution of Decree - Order XXI Rule 32(5) CPC - Section 37, 38, 40, 71 RERA - The issue was whether the decree holders could seek execution of a decree for specific performance of construction by having the construction done by themselves or by a person appointed by the Tribunal at the cost of the judgment debtor. The High Court held that the provisions of Order XXI Rule 32(5) CPC are applicable to execution of RERA decrees, and the Tribunal has the power to allow such execution. The court allowed the amendment and directed the Tribunal to consider the execution applications afresh. (Paras 1-37)

B) Real Estate Law - Maintainability of Second Appeal - Section 100 CPC - The court held that the second appeals are maintainable as they involve substantial questions of law regarding the applicability of Order XXI Rule 32(5) CPC to RERA execution proceedings and the power of the Tribunal to allow execution by the decree holder at the cost of the judgment debtor. (Paras 1-37)

C) Real Estate Law - Amendment of Execution Application - Section 151 CPC - The court held that the Tribunal has inherent powers to allow amendment of execution applications to include a prayer for execution under Order XXI Rule 32(5) CPC, as such amendment is necessary for the effective enforcement of the decree. (Paras 1-37)

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Issue of Consideration

Whether the Appellate Tribunal erred in disallowing the amendment sought by the decree holders to execute the decree by having the construction done by themselves or by a person appointed by the Tribunal at the cost of the judgment debtor, in the manner provided under Order XXI Rule 32(5) of the Code of Civil Procedure, 1908.

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Final Decision

The High Court allowed the second appeals, set aside the impugned order dated 10 July 2025 passed by the Maharashtra Real Estate Appellate Tribunal, and directed the Tribunal to consider the execution applications afresh, including the prayer for execution under Order XXI Rule 32(5) CPC. The court held that the provisions of Order XXI Rule 32(5) CPC are applicable to execution of RERA decrees, and the Tribunal has the power to allow such execution. The court also held that the amendment sought by the appellants was necessary for the effective enforcement of the decree and should have been allowed.

Law Points

  • Execution of decree for specific performance of construction
  • Order XXI Rule 32(5) CPC
  • Section 37 RERA
  • Section 38 RERA
  • Section 40 RERA
  • Section 71 RERA
  • Section 88 RERA
  • Section 89 RERA
  • Maharashtra Real Estate Appellate Tribunal Rules
  • 2018 Rule 26
  • Code of Civil Procedure
  • 1908 Section 151
  • inherent powers of court
  • amendment of execution application
  • maintainability of second appeal under Section 100 CPC
  • substantial question of law
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Case Details

2026 LawText (BOM) (06) 96

Second Appeal No.559 of 2025 with Interim Application No.12226 of 2025, Second Appeal No.600 of 2025 with Interim Application No.12904 of 2025, Second Appeal No.598 of 2025 with Interim Application No.12897 of 2025, Second Appeal No.599 of 2025 with Interim Application No.12899 of 2025, Second Appeal No.597 of 2025 with Interim Application No.12896 of 2025

2026-06-24

N.J. Jamadar, J.

Mr. Jay Chhabria with Ms. Tvishi Pant, Mr. Aditya Shete i/by Keystone Partners for Appellants; Mr. Rubin Vakil with Mr. Abir P. (through VC), Mr. Kartik Joshi i/by Wadia Ghandy and Co. for Respondent

Rajan Chandiramani, Jagruti Parikh and Anr., Priyanka Waghela, Srichand Makhija, Jayesh Jagdish Thakkar

Swadhinta Builders LLP

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Nature of Litigation

Second appeals against order of Maharashtra Real Estate Appellate Tribunal disallowing amendment in execution applications under RERA.

Remedy Sought

Appellants sought to amend execution applications to include a prayer for execution under Order XXI Rule 32(5) CPC, i.e., to have the construction done by themselves or by a person appointed by the Tribunal at the cost of the judgment debtor.

Filing Reason

The Appellate Tribunal disallowed the amendment, holding that Order XXI Rule 32(5) CPC is not applicable to RERA execution proceedings.

Previous Decisions

The Authority passed orders dated 28 March 2020 directing the promoter to complete construction and execute agreements. The promoter failed to comply, and the Authority passed decrees under Section 37 read with Section 40 RERA. The decrees were affirmed by the Appellate Tribunal. Execution applications were filed, and the appellants sought amendment to include execution under Order XXI Rule 32(5) CPC, which was disallowed by the Tribunal on 10 July 2025.

Issues

Whether the provisions of Order XXI Rule 32(5) of the Code of Civil Procedure, 1908 are applicable to execution of decrees passed under the Real Estate (Regulation and Development) Act, 2016? Whether the Maharashtra Real Estate Appellate Tribunal has the power to allow execution of a decree by having the construction done by the decree holder or by a person appointed by the Tribunal at the cost of the judgment debtor? Whether the amendment sought by the appellants to include such a prayer in the execution applications was rightly disallowed by the Tribunal?

Submissions/Arguments

Appellants argued that Order XXI Rule 32(5) CPC is applicable to RERA execution proceedings as RERA does not provide a complete code for execution, and the Code applies by virtue of Sections 88 and 89 of RERA. They contended that the Tribunal has inherent powers under Section 151 CPC to allow the amendment. Respondent argued that RERA is a self-contained code and the provisions of CPC are not applicable. They contended that the Tribunal has no power to order execution under Order XXI Rule 32(5) CPC, and the amendment would change the nature of the decree.

Ratio Decidendi

The provisions of Order XXI Rule 32(5) of the Code of Civil Procedure, 1908 are applicable to execution of decrees passed under the Real Estate (Regulation and Development) Act, 2016, as RERA does not provide a complete code for execution and the Code applies by virtue of Sections 88 and 89 of RERA. The Maharashtra Real Estate Appellate Tribunal has the power to allow execution of a decree by having the construction done by the decree holder or by a person appointed by the Tribunal at the cost of the judgment debtor, and such a prayer can be included by way of amendment in the execution application.

Judgment Excerpts

These Second Appeals are directed against a common order dated 10 July 2025 passed by the Maharashtra Real Estate Appellate Tribunal (the Appellate Tribunal), whereby the applications preferred by the respective Appellants ... for amendment in Execution Application ... came to be disallowed to the extent the Appellants sought direction that the construction of the real estate project in question be done by the decree holders or such other persons appointed by the Tribunal at the cost of the judgment debtor and the expenses thereof be ascertained and recovered from the judgment debtor as if it were included in the decree, so as to execute the decree in the manner provided under Order XXI Rule 32(5) of the Code of Civil Procedure, 1908 (the Code).

Procedural History

The appellants filed complaints before the Maharashtra Real Estate Regulatory Authority, which passed orders on 28 March 2020. The Authority later passed decrees under Section 37 read with Section 40 RERA. The decrees were affirmed by the Appellate Tribunal. The appellants filed execution applications before the Appellate Tribunal. On 10 July 2025, the Tribunal disallowed the amendment sought by the appellants to include a prayer for execution under Order XXI Rule 32(5) CPC. The appellants filed second appeals before the Bombay High Court, which were heard together and decided on 24 June 2026.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXI Rule 32(5), Section 151
  • Real Estate (Regulation and Development) Act, 2016: Section 37, Section 38, Section 40, Section 71, Section 88, Section 89
  • Maharashtra Real Estate Appellate Tribunal Rules, 2018: Rule 26
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