Madhya Pradesh HC Directs Homebuyer to RERA Tribunal for Delayed Flat Possession

Jabalpur, Feb 14 (IANS) In a significant ruling that clarifies procedural pathways under the Real Estate (Regulation and Development) Act, 2016, the Madhya Pradesh High Court at Jabalpur has directed an aggrieved homebuyer to approach the appropriate forum for executing a delayed possession order against a builder.

A bench of Justice Vishal Mishra, presiding over the Writ Petition, disposed of the case on Thursday, emphasizing the doctrine of merger in appellate orders. The dispute originated from a homebuyer, GP Gupta, who had filed a complaint with the Madhya Pradesh Real Estate Regulatory Authority (RERA) against a builder. The builder neither completed the flat on time nor paid the contractual interest as agreed.

Initially, RERA ordered the builder to deliver possession within three months and referred the compensation matter to an adjudicating officer, who ruled in favor of the complainant. However, the builder appealed, and the Appellate Tribunal, on November 19, 2020, directed the builder to deliver possession within two months and to pay interest at the rate of 9% on Rs 40 lakh until possession was handed over.

Despite execution proceedings at RERA, the builder failed to comply, leading the complainant to file a High Court plea for a mandamus to enforce the Tribunal’s order dated November 19, 2020, and a subsequent RERA member order from July 10, 2024, or alternatively, a reasoned decision on his representations.

The respondents, including RERA and the builder, contested the maintainability of the petition. They cited Section 57 of the RERA Act, which states, “Every order made by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of a civil court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court.”

The court concurred with the respondents, noting that Gupta had approached the wrong forum, i.e., RERA, for execution. Justice Mishra observed, “The fact remains that the original order has merged into the appellate order. It is for the Appellate Tribunal to consider the application filed by the petitioner for execution of the order passed by the Appellate Tribunal.”

He further added, “Under these circumstances, no direction can be issued to the RERA authority to expedite the proceedings of the execution of the order passed by the Appellate Tribunal.” However, the court granted liberty to the petitioner, stating, “The petitioner is at liberty to approach the MP Real Estate Appellate Tribunal seeking execution of the order passed by the Appellate Tribunal in accordance with the law.”

Gupta, appearing in person, committed to filing the application within 15 days and requested a time-bound decision. With no objections from the respondents, the court directed, “If such an application is filed, the Appellate Tribunal is directed to consider and decide the same in accordance with the law within a period of 90 days thereafter.”

This judgment may serve as a guiding precedent for similar cases, reinforcing that appellate orders supersede originals under RERA, potentially streamlining the enforcement process for homebuyers facing builder non-compliance.