RERA Review Powers Are Limited; Review Cannot Be Used to Rehear a Matter on Merits: MP REAT

RERA Review Powers Are Limited; Review Cannot Be Used to Rehear a Matter on Merits: MP REAT

Title: Madhya Pradesh Real Estate Regulatory Authority v. Aarti Soni & Anr.

The Madhya Pradesh Real Estate Appellate Tribunal (MP REAT) recently dismissed a review petition filed by the Madhya Pradesh Real Estate Regulatory Authority, reiterating that the power of review is limited and cannot be used as a substitute for an appeal.

The Tribunal held that review is maintainable only where there is an error apparent on the face of the record, discovery of new material/evidence, or another sufficient reason. A party cannot seek a rehearing of the matter merely because it is dissatisfied with the earlier appellate decision.

The Authority contended that subsequent action taken under Section 59 of RERA, including imposition of a ₹1 lakh fine, demonstrated compliance with the earlier directions. The Tribunal, however, found that the subsequent penalty did not establish effective compliance with the earlier order and that the requirements arising under Sections 7 and 8 of RERA continued to remain unfulfilled.

Accordingly, the Tribunal found no ground for review, dismissed the review petition and directed the Authority to proceed with compliance after affording the concerned parties an opportunity of hearing.

Key takeaway: A review petition under RERA cannot be used to reopen the merits of a reasoned appellate order. Subsequent regulatory action will not, by itself, establish an error in the original decision or cure continuing non-compliance with statutory directions. 

Allahabad High Court - Every court/tribunal has an inherent power of procedural review and the same can not be denied to the petitioner merely for the reason that there is no provision to that effect in the Act/Statute.

 In the Matter of M/S T.G.B. Realty Pvt. Ltd. Complaint no. WRIT - C No. - 32301 of 2019 decided on 17.10.2019  before Allahabad High Court

Fact of the Case.

• The petitioner is a builder and its project Neel Gagan, Siddhartha Vihar, Ghaziabad is registered under the Real Estate Regulatory Authority

• The petitioner by means of this writ petition has made a prayer for quashing of the orders dated 10.4.2018 dated 27.4.2019 passed by the RERA in complaint case no. 1120173596 Prakash Chandra Agrawal Vs.M/s. TGB Reality Private Limited and for quashing of the recovery certificate dated 17.8.1999 and the recovery citation dated 12.9.2019 issued in pursuance to the aforesaid orders.

Argument by the Applicant

• both the above orders have been passed without any notice and opportunity of hearing to the petitioner.

• The complainant has given the wrong address of the petitioner in the complaint and the notice was sent on the wrong address which was never served upon the petitioner. 

• it was denied opportunity of hearing

• If the petitioner has not been served with any notice or given opportunity of hearing, the remedy is by way of an application for recall of the impugned orders before the RERA.

Argument by the Defendant

• RERA is not entertaining the recall application for the reason that there is no provision under the Act for the said purpose.

Final Order

• It is well recognized that every court/tribunal has an inherent power of procedural review and the same can not be denied to the petitioner merely for the reason that there is no provision to that effect in the Act/Statute.

• we dispose of the writ petition with liberty to the petitioner to apply for recall of the two orders impugned in this writ petition passed by the RERA. In case any such recall application/(s) are filed, the RERA would entertain the same and dispose them of in accordance with law most expeditiously, if possible, within a period of one month from the date of the filing of such application (s).