Sanju Daulatraj Desai v. Realgem Buildtech Pvt. Ltd. & Ors.
Forum: MREAT
Facts:
The allottee had paid more than 10% of the total consideration, but the promoter had not executed and registered the AFS. The promoter later terminated the allotment for alleged non-payment. MahaRERA had dismissed the complaint and referred the parties to arbitration because the allotment letter contained an arbitration clause.
Issue:
Whether an arbitration clause excludes RERA jurisdiction and whether the promoter could demand more than 10% before execution and registration of the AFS.
Held:
MREAT held that the arbitration clause did not oust RERA jurisdiction. It also found that the promoter's subsequent demands and termination were prima facie unsustainable because the promoter could not demand amounts beyond the statutory threshold without first executing and registering the AFS.
Ratio:
The existence of an arbitration agreement does not automatically displace a statutory remedy under RERA. Section 13 places restrictions on collection of amounts beyond the prescribed threshold without execution and registration of the Agreement for Sale.
Practical Impact:
Promoters should execute and register the AFS before collecting amounts exceeding the statutory threshold. Allottees should not assume that an arbitration clause prevents them from invoking RERA.
Relevant RERA Sections:
Section 13 — no more than 10% without Agreement for Sale; Section 18 — allottee remedies; Section 79 — jurisdictional framework.
