Supreme Court Upholds Challenge to State Enactment on Housing Regulation Due to Repugnancy with Central Law. The West Bengal Housing Industry Regulation Act, 2017 was found unconstitutional for lacking Presidential assent and being inconsistent with the Real Estate (Regulation and Development) Act, 2016.

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Case Note & Summary

The Supreme Court addressed the constitutional validity of the West Bengal Housing Industry Regulation Act, 2017 (WB-HIRA) in a writ petition filed under Article 32. The petitioners contended that WB-HIRA was inconsistent with the Real Estate (Regulation and Development) Act, 2016 (RERA), which had been enacted by Parliament and received Presidential assent. They argued that both laws pertained to legislative subjects in the Concurrent List, and since WB-HIRA had not received Presidential assent, it was constitutionally impermissible for the State Legislature to enact parallel legislation. The court examined the legislative history, noting that prior to RERA, various state laws had been enacted to regulate real estate, including the West Bengal (Regulation of Promotion of Construction and Transfer by Promoters) Act, 1993, which had received Presidential assent. The court highlighted that RERA was enacted to address the unregulated growth of the real estate sector and to protect consumer interests, establishing a regulatory authority for oversight. The court found that WB-HIRA mirrored many provisions of RERA but lacked the necessary assent, leading to a conclusion of repugnancy. Ultimately, the court held that WB-HIRA could not coexist with RERA, thereby upholding the challenge against the state enactment and declaring it invalid.

Headnote

A) Constitutional Law - Legislative Competence - Challenge to State Enactment - West Bengal Housing Industry Regulation Act, 2017 - The petitioners challenged the constitutional validity of WB-HIRA on grounds of repugnancy with RERA and lack of Presidential assent. The court analyzed the legislative history and the provisions of both acts, concluding that the state enactment was inconsistent with the central law and lacked necessary assent, thus rendering it invalid. Held that WB-HIRA could not stand in light of RERA (Paras 1-12).

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Issue of Consideration

Whether the West Bengal Housing Industry Regulation Act, 2017 is constitutionally valid in light of the Real Estate (Regulation and Development) Act, 2016.

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Final Decision

The Supreme Court held that the West Bengal Housing Industry Regulation Act, 2017 was unconstitutional due to its inconsistency with the Real Estate (Regulation and Development) Act, 2016 and lack of Presidential assent, thereby invalidating the state enactment.

Law Points

  • Constitutional validity
  • Legislative competence
  • Repugnancy
  • Presidential assent
  • Concurrent List
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Case Details

2021 LawText (SC) (05) 45

Writ Petition (C) No. 116 of 2019

2019-11-20

Dr Justice Dhananjaya Y Chandrachud

Forum for People’s Collective Efforts, Anr.

The State of West Bengal, Anr.

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Nature of Litigation

Challenge to the constitutional validity of a state enactment.

Remedy Sought

Petitioners sought to declare WB-HIRA unconstitutional.

Filing Reason

Alleged inconsistency with RERA and lack of Presidential assent.

Issues

Whether WB-HIRA is constitutionally valid. Whether WB-HIRA is repugnant to RERA.

Submissions/Arguments

Petitioners argued that WB-HIRA lacked Presidential assent and was inconsistent with RERA. Respondents contended that WB-HIRA was a valid state enactment.

Ratio Decidendi

The court established that a state law cannot be enacted in a field covered by a central law without Presidential assent, particularly when both laws are related to subjects in the Concurrent List.

Judgment Excerpts

The constitutional validity of the West Bengal Housing Industry Regulation Act, 2017 is challenged in a petition under Article 32. WB-HIRA has neither been reserved for nor has it received Presidential assent under Article 254(2). The State enactment contains certain provisions which are either directly inconsistent with the corresponding provisions of the Central enactment.

Procedural History

The petition was filed under Article 32 challenging the constitutional validity of WB-HIRA, leading to examination of legislative history and provisions of both WB-HIRA and RERA.

Acts & Sections

  • Real Estate (Regulation and Development) Act, 2016: Section 1, Section 2, Section 88, Section 89
  • West Bengal Housing Industry Regulation Act, 2017:
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