HC sides with RERA Appellate Tribunal awarding compensation of Rs.5 Crore in Real Estate Dispute [Read Judgment]

The Bombay high court upheld the order of the RERA appellate tribunal in a real estate dispute sustaining the order to pay Rs. 5 Crore in compensation, granting time of four weeks to the appellant for the payment of the aforementioned compensation.

The appeal was brought before the high court by Renaissance infrastructure Ltd. challenging the order of the RERA appellate tribunal. The issue arose when the Renaissance (the respondent promoter in the tribunal complaint) failed to hand over the possession of the premises sold to the purchaser. The handing over of the possession was due since 2010 which resulted in the purchaser moving to the appellate tribunal. The tribunal awarded Rs. 5 crores as compensation of loss of rent incurred by the complainant till 2018 and payment of Rs.6.3 lakh per month further ordering the Renaissance to hand over the possession of premises.

The appellant objected to the order of the tribunal on the grounds that the agreement between the parties was not an agreement of sale but agreement in lieu of the respondent’s share in the partnership, which does not make the appellant a promoter in this case. The respondent further argued that the respondent’s claim was premature and the tribunal had no jurisdiction to grant such compensation for liquidated damages.

The single-judge bench of justice S.C. Gupte, dismissed the appeal stating that the agreement was prima facie an agreement of sale and the respondent being a partner does not make the agreement any less the agreement of sale, thus satisfying the ingredients of the appellant being a promoter.

The court upheld the order of the tribunal stating “no infirmity in the impugned orders passed by the Appellate Tribunal. The orders do not give rise to any substantial question of law for the consideration of this court.” The court dismissed the appeal, giving the appellant time of four weeks to pay the amount as ordered by the tribunal and also alerted for the consequences of non-payment saying “if the amount is not paid within four weeks, the Tehsildar may proceed with the sale of the attached property.” The court also refused to grant any order of stay which was requested by the appellant.

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