Understanding the Haryana Tribunal's Ruling in the Parsvnath Developers Ltd. Case

In a recent case before the Haryana Real Estate Appellate Tribunal, Parsvnath Developers Limited, a prominent real estate company, appealed against an order issued by the Haryana Real Estate Regulatory Authority. The case, numbered 479 of 2021, involved two residents, Kiran Khyalia and Yudhbir Singh, who filed a complaint against Parsvnath Developers Ltd. The order, dated 25.08.2021, directed the appellant to comply with certain obligations under the Real Estate (Regulation and Development) Act, 2016. This article provides an in-depth analysis of the case and the Tribunal's decision.

Background:

Complaint No. 526 of 2020 was previously filed by Kiran Khyalia and Anr. against Parsvnath Developers Ltd. In its order dated 31.03.2021, the Haryana Real Estate Regulatory Authority ruled in favor of the respondents, directing the appellant to pay an interest amount of Rs. 33,36,525/- within 45 days. Additionally, the appellant was instructed to pay monthly interest until the possession of the flat was handed over, amounting to Rs. 41,040/- per month as per Rule 15 of Haryana Real Estate (Regulation and Development) Rules, 2017.

Appeal and Arguments:

Feeling aggrieved by the order, Parsvnath Developers Ltd. chose to file an appeal before the Haryana Real Estate Appellate Tribunal. The appellant argued that since the order could be executed using the procedure outlined in Section 40 of the Real Estate Act, the provisions of Section 63 should not be invoked to recover the payable amount.

On the other hand, the respondents' counsel argued that Section 63 of the Act does not limit its application to specific types of orders. They contended that the Authority has the power to impose penalties under Section 63, even if proceedings under Section 40 were initiated.

Tribunal's Decision:

After careful consideration of the arguments and examination of the relevant provisions, the Haryana Real Estate Appellate Tribunal reached the following conclusions:

1. Section 40 and Section 63 of the Real Estate Act serve different purposes. Section 40 outlines the procedure for recovering the amount payable as per the Authority's order, while Section 63 empowers the Authority to impose penalties on non-compliant promoters.
2. Section 63 does not restrict its application to specific types of orders. The use of the term "any order" indicates that the Authority has the jurisdiction to impose penalties for non-compliance with its orders, regardless of the procedure initiated under Section 40.

The appellant's counsel referred to a judgment by the Punjab and Haryana High Court, but the Tribunal found no mention of Section 63 in that case, nor any indication that it limited the application of the section in question.

Based on the analysis, the Tribunal dismissed the appeal filed by Parsvnath Developers Ltd., ruling that it lacked merit.

Conclusion:

The Haryana Real Estate Appellate Tribunal's decision in the case of Parsvnath Developers Ltd. vs. Kiran Khyalia and Yudhbir Singh reaffirmed the Authority's power to impose penalties under Section 63 of the Real Estate Act. The Tribunal's ruling clarified that Section 63 can be invoked for non-compliance with any of the Authority's orders, irrespective of the procedure initiated under Section 40. This case serves as an important precedent for future real estate disputes, emphasizing the accountability of promoters in adhering to the Authority's orders.

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. 479 of 2021 before the Haryana Real Estate Regulatory Authority

We hope you found our blog insightful and engaging! We appreciate your time and interest. If you enjoyed reading it, don't forget to subscribe to our newsletter to receive regular updates on our latest content. Visit our website www.reunionhq.in to know more.