Lawstreet Journal

Consumer Complaint by Allottees Against Builder Not Barred by RERA Act, 2016: Supreme Court

Lawstreet Journal 3 Nov 2020 10:49pm

Image courtesy: Lawstreet Journal Judiciary Consumer Complaint by Allottees Against Builder Not Barred by RERA Act, 2016: Supreme Court

The Supreme Court has held that a complaint filed before Consumer Forum by allottees against builders is not barred by the Real Estate Regulation Act, 2016. 

The present complainants had booked apartments by executing Builder Buyer Agreements in 2013. They had approached the Consumer Commission which allowed their complaint and ordered refund of the amounts deposited by each of them with simple interest @ 9% p.a. from the respective dates of deposits along with Rs 50, 000/- towards costs. 

The Builders had raised two issues, whether the bar specified under Section 79 of the RERA Act would apply to proceedings initiated under the proceedings of the CP Act and whether there is anything inconsistent in the provisions of the CP Act with that of the RERA Act. 

The court observed that Section 79 of the RERA Act bars the jurisdiction of a Civil Court to entertain any suit or proceedings in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered under the RERA Act would be in addition to and not in derogation of the provisions of any other law, while in terms of Section 89, the provisions of the RERA Act shall have effect notwithstanding anything inconsistent contained in any other law for the time being in force. 

A bench of Justice UU Lalit and Vineet Saran took notice of the proviso to Section 71(1) of the RERA Act which entitles a complainant who had initiated proceedings under the CP Act before the RERA Act… Continue Reading...

Tagged: Consumer Protection Act   Consumer  
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