Haryana Real Estate Appellate Tribunal Sets Precedent on Refunds in Satya Pal Malik vs. Ocus Skyscrapers Realty Limited Case

In a significant development for the real estate sector, the Haryana Real Estate Appellate Tribunal recently delivered a judgment in Appeal No. 585 of 2022. The case involved Satya Pal Malik, son of late Shri Rai Singh Malik, as the appellant, and Ocus Skyscrapers Realty Limited as the respondent. The appeal challenged the order passed by the Adjudicating Officer of the Haryana Real Estate Regulatory Authority, which dismissed the complaint filed by the appellant for a refund. This landmark judgment sheds light on the jurisdiction of the Adjudicating Officer and the Authority in matters related to refunds in the real estate sector.

Background:

Satya Pal Malik, the appellant, had filed a complaint seeking a refund of the amount deposited with Ocus Skyscrapers Realty Limited, the respondent. The appellant claimed that the respondent had failed to honor the terms and conditions of the 'Builder Buyer's Agreement' entered into between them on February 17, 2021. However, the Adjudicating Officer dismissed the complaint, stating that the appellant had given consent for the change of unit and leasing out of the same, and instead of taking possession of the unit, he approached the forum for a refund.

Legal Arguments:

In the appeal before the Haryana Real Estate Appellate Tribunal, the appellant's counsel, Shri Prateek Singh, argued that the Adjudicating Officer had no jurisdiction to entertain and adjudicate upon the complaint for a refund. Citing the judgment of the Hon'ble Apex Court in the case of Newtech Promoters & Developers Pvt. Ltd. vs. State of UP & Ors., the counsel contended that the regulatory authority, rather than the Adjudicating Officer, had the power to determine the outcome of a complaint for a refund.

The respondent's counsel, Shri Anuj Dewan, could not counter the appellant's contentions, given the authoritative pronouncement of the Hon'ble Apex Court in the Newtech Promoters' case. Therefore, it became evident that the impugned order passed by the Adjudicating Officer was beyond jurisdiction and null and void.

The Tribunal's Decision:

After careful consideration of the arguments, the Haryana Real Estate Appellate Tribunal rendered its judgment. The Tribunal relied on the Newtech Promoters' case and emphasized that the Adjudicating Officer's jurisdiction is limited to adjudicating compensation and interest under specific sections of the Real Estate (Regulation and Development) Act, 2016. The power to examine and determine complaints for refunds, interest on refund amounts, delayed possession, penalty, and interest rests with the regulatory authority.

Consequently, the Tribunal allowed the appeal, set aside the impugned order, and remanded the complaint to the Haryana Real Estate Regulatory Authority for a fresh decision in accordance with the law. The Authority was directed to dispose of the complaint expeditiously, preferably within two months, after providing an opportunity of hearing to the parties.

Conclusion:

The judgment in the case of Satya Pal Malik vs. Ocus Skyscrapers Realty Limited has provided much-needed clarity on the jurisdiction of the Adjudicating Officer and the regulatory authority in matters related to refunds in the real estate sector. The Tribunal's reliance on the Newtech Promoters' case has established a precedent for future cases involving refund claims. This landmark judgment ensures that aggrieved buyers have the appropriate forum for seeking redressal and reinforces the protection of their rights in real estate transactions.

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 the Appeal No.585 of 2022 before the Haryana Real Estate Regulatory Authority

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