Unveiling the Legal Complexities: Hi Craze Fashions Pvt. Ltd. vs. Gupta Developers Case in Focus

In a recent decision by the Haryana Real Estate Appellate Tribunal, a case involving M/s Hi Craze Fashions Pvt. Ltd. and Gupta Developers has drawn significant attention. The case, numbered Appeal No. 194 of 2022, revolved around the complainant seeking possession of a unit allotted to them along with delay possession interest. The tribunal's decision, dated 10.05.2023, provided crucial insights into the legal complexities surrounding the matter. Let's delve into the details of this case.

The Parties Involved

The appellant, M/s Hi Craze Fashions Pvt. Ltd., is a registered company with its office located at 401, Kalika, Plot No. 12-A, Greater Bombay CHS Ltd., Gulmohar Cross Road No. 4, J.V.P.D, Mumbai-400049. On the other hand, the respondents include M/s Gupta Developers, situated at 2nd Floor, Suncity Business Tower Sector-54, Golf Course Road, Gurugram-122002, Haryana, and M/s Suncity Projects Pvt. Ltd., located at LGF-10, Vasant Square Mall, Plot-A, Sector-B, Pocket-V, Community Centre, Vasant Kunj, New Delhi-110070.

Background and Previous Orders

The appellant had initially filed a complaint (CR/2429/2019) before the Authority at Gurugram, seeking possession of an allotted unit in Trade Tower no. 118-A, along with delay possession interest. However, the complaint was dismissed based on the appellant's counsel's statement that possession had already been taken on 31.12.2011. The order, dated 03.11.2020, indicated that the complaint was not maintainable.

Unsatisfied with their counsel's statement, the appellant filed a complaint against their counsel under the Advocates Act, 1961, alleging professional misconduct. This led to an application for rectification/review of the order dated 03.11.2020 and the revival of the complaint. However, the application for rectification was rejected, as the authority had no power to review its order. The order, dated 05.01.2022, upheld the dismissal of the complaint.

Key Arguments

The appellant's counsel contended that they had never authorized their counsel to make the statement regarding possession on 31.12.2011. They argued that the Authority should have considered their application for rectification. Conversely, the respondent's counsel asserted that the provisions of the Real Estate (Regulation and Development) Act, 2016, were not applicable, as the completion certificate was granted to the respondent/promoter on 21.04.2014.

Tribunal's Decision

Upon careful consideration of the matter, the Tribunal concluded that none of the issues raised had been addressed by the lower authority. The question of the Act's applicability to the case remained unresolved, pending adjudication on whether the completion certificate was indeed granted to the respondent/promoter on 21.04.2014.

Furthermore, the Tribunal observed that the order dated 05.01.2022, which was under challenge, had been initially passed by a legal officer and later rectified by the Authority. The delegation of judicial powers to a legal officer raised concerns, as there was no clear procedure known to law for such delegation. Consequently, the Tribunal set aside the order in question, remitting the matter to the Authority for a fresh decision in accordance with the law.

Conclusion

The Hi Craze Fashions Pvt. Ltd. vs. Gupta Developers case has shed light on crucial legal considerations within the real estate sector. With the Tribunal setting aside previous orders and calling for a fresh decision, the case's outcome is yet to be determined. It emphasizes the importance of accurate and authorized statements made by counsels and the proper exercise of judicial powers by authorities. As the proceedings continue, stakeholders and legal experts eagerly await the final resolution of this case.

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. 194 of 2022 before the Haryana Real Estate Regulatory Authority

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