Sana Hospitality Services Pvt. Ltd. v. Madan Kishan Gurow & Ors.
Forum: Bombay High Court
Facts:
A flat was first sold by Mount Mary Builders to Sana Hospitality Services Pvt. Ltd. through a sale deed. The same flat was subsequently covered by another AFS in favour of Madan Kishan Gurow and others, who were put into possession. RERA proceedings resulted in orders concerning possession. The later purchasers instituted a civil suit seeking declarations that their agreement was valid and that they were bona fide purchasers without notice.
Issue:
Whether Section 79 of RERA barred the civil suit involving competing claims of title and bona fide purchase.
Held:
The Bombay High Court upheld the trial court's refusal to reject the plaint. The central dispute concerned title and whether the plaintiffs were bona fide purchasers for value without notice. RERA authorities could not grant the declaratory and injunctive relief sought.
Ratio:
Section 79 does not transform RERA into a forum for adjudication of every dispute connected with real estate. Where the dispute fundamentally concerns title and competing proprietary claims requiring declaratory relief, civil-court jurisdiction remains relevant.
Practical Impact:
Practitioners should distinguish between statutory allottee/promoter disputes and disputes requiring declarations of title or bona fide purchaser status.
Relevant RERA Sections:
Section 79 — bar of jurisdiction; Section 17 — transfer of title; Section 34 — functions of Authority.
