Case Note & Summary
The case involved an appeal under Section 58 of the Real Estate (Regulation and Development) Act, 2016 (RERA) challenging an order from the Maharashtra Real Estate Appellate Tribunal (REAT) that required the appellant to deposit Rs. 38.18 crores as a condition for granting interim relief regarding a flat in the Palais Royale project. The appellant, Sachin Bajla, had initially entered into a Letter of Allotment with Shree Ram Urban Infrastructure Limited (SRUIL) for a flat, but after SRUIL's winding up and subsequent auction of the property, Honest Shelters Pvt. Ltd. (Respondent No. 1) took over the project. The appellant disputed the termination of his allotment and sought relief from MahaRERA, which was dismissed, leading to the appeal before the REAT. The REAT granted conditional status quo but required the substantial deposit, which the appellant contested as excessive and contrary to RERA provisions. The court examined the powers of the REAT to impose such conditions and the implications of Section 13(1) of RERA, which limits advance payments to 10% without a formal agreement. The court concluded that the REAT's discretion to impose deposit conditions is valid, especially when the project is complete and the full amount is due, thus balancing the interests of both parties. The appeal was ultimately dismissed, affirming the REAT's order and the necessity of the deposit condition to prevent undue litigation and protect the promoter's interests.
Headnote
A) Real Estate Law - Interim Relief - Condition of Deposit - Real Estate (Regulation and Development) Act, 2016, Section 13(1) - The REAT's imposition of a deposit condition exceeding 10% of the flat's cost for interim relief was challenged. The court held that the REAT has discretion to impose such conditions to balance equities, especially when the project is nearly complete and full payment is due (Paras 21-30).
Issue of Consideration
Whether the condition of deposit imposed by the REAT exceeds the maximum quantum contemplated by Section 13(1) of the RERA Act and whether such conditions can defeat the prohibition stipulated by the same section.
Final Decision
The appeal was ultimately dismissed, affirming the REAT's order requiring the appellant to deposit Rs. 38.18 crores as a condition for interim relief, while validating the REAT's discretion to impose such conditions in light of the project's completion and the full amount due.
Law Points
- Interim relief
- deposit conditions
- Real Estate (Regulation and Development) Act
- 2016
- powers of REAT
- Section 13(1) RERA
- equity in interim orders
