Appellate Tribunal Rules in Favor of Bright Buildtech in Appeal Against Mr. Paramveer Singh and Ms. Shashi Raghav's Refund Request

In a recent decision, the Haryana Real Estate Appellate Tribunal addressed Appeal No. 203 of 2022 filed by Bright Buildtech Private Limited against an order issued by the Haryana Real Estate Regulatory Authority. The order, dated 22.09.2021, allowed Complaint No. 6681 of 2019 filed by Mr. Paramveer Singh and Ms. Shashi Raghav, seeking a refund of the amount they paid to the appellant. The tribunal, chaired by Justice Rajan Gupta, set aside the order and remitted the case back to the regulatory authority for reconsideration.

Background

Bright Buildtech Private Limited, a registered company under the Companies Act, 2013, appealed against the order issued by the Adjudicating Officer of the Haryana Real Estate Regulatory Authority. The complainants, Mr. Paramveer Singh and Ms. Shashi Raghav, residents of Gurugram, Haryana, had sought a refund of Rs. 25,40,966/- along with interest and litigation expenses. The Adjudicating Officer allowed the complaint and directed the appellant to refund the amount within 90 days, along with interest at 9.3% per annum, and imposed a cost of Rs. 1,00,000/- on the appellant.

Appellant's Contentions

The counsel for Bright Buildtech Private Limited argued that the Adjudicating Officer had exceeded their jurisdiction by entertaining and adjudicating upon the complaint. The appellant's counsel relied on the Supreme Court's decision in the case of Newtech Promoters & Developers Pvt. Ltd. vs. State of UP & Ors. Etc. 2022(1) R.C.R. (Civil) 357 to support their contention that the Adjudicating Officer lacked the authority to address the complaint for a refund.

Supreme Court Precedent

The tribunal examined the Supreme Court's ruling in the Newtech Promoters' case, which clarified the jurisdiction of the Adjudicating Officer and the Regulatory Authority under the Real Estate (Regulation and Development) Act, 2016. The Supreme Court held that the Adjudicating Officer is responsible for adjudicating compensation claims and interest, while the Regulatory Authority has the authority to handle complaints related to refunds, interest on refund amounts, delayed delivery of possession, penalties, and associated interests.

Tribunal's Decision

Based on the Supreme Court's precedent, the Haryana Real Estate Appellate Tribunal concluded that the Adjudicating Officer had exceeded their jurisdiction by addressing the complaint for a refund. Therefore, the tribunal allowed the appeal, setting aside the order issued by the Adjudicating Officer on 22.09.2021. The case was remitted back to the Haryana Real Estate Regulatory Authority for reconsideration, providing an opportunity for both parties to be heard. The tribunal directed the authority to dispose of the complaint within two months.

Conclusion

In Appeal No. 203 of 2022, the Haryana Real Estate Appellate Tribunal overturned the order for a refund issued by the Adjudicating Officer. Relying on the Supreme Court's decision in the Newtech Promoters' case, the tribunal concluded that the Adjudicating Officer lacked the jurisdiction to adjudicate complaints for a refund. The case was remitted back to the Haryana Real Estate Regulatory Authority for reconsideration, ensuring an opportunity for both parties to present their arguments. The tribunal's decision highlights the importance of adhering to the jurisdictional boundaries established by law in real estate dispute resolutions.

Note: The information provided in this article about Haryana Real Estate Regulatory Authority (HRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on Appeal No.203 of 2022 before the Haryana Real Estate Regulatory Authority

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