Introduction

When special legislations like Real Estate (Regulation & Development) Act 2016 (RERA Act) for regulating a specific sector is enacted a tribunal is set up under such acts for dispute resolutions at appellate stage. In case any party to the dispute is not satisfied with the decision of the original adjudicating authority, an appeal can be taken to the Appellate Tribunal. An Appellate Tribunal is also constituted under that particular act to hear appeals against the orders of adjudicating authority set up by that act. Where any party to the case is aggrieved by the decisions of the Appellate Tribunal, it may file an appeal to the jurisdictional High Court.

What is Real Estate Appellate Tribunal?

Real Estate Appellate Tribunal popularly known as REAT as any other tribunal is established to hear appeals from the decisions, directions or orders of the RERA Authority as well as the adjudicating officer established under the RERA act. It is the body dedicated for hearing the first appeals. Any person unsatisfied with the decision, directions or orders of the adjudicating body can file an appeal with REAT.

Let us consider some Illustrations where parties can approach the Appellate Tribunal

• ‘A’ bought a flat in a property developed by a promoter named ‘X’. X promised A that it will deliver the flat in 2016. But X was not able to deliver the possession in time and was not even able to complete the project. A filed a complaint before RERA in 2020 and prayed before the authority to direct the Promoter X to give refund the entire investment amount along with interest to A. But A feels aggrieved to see that in the orders passed in June 2022 by RERA it is ordered that the Promoter X will give the possession of the flat to A before December 2022. A who spent a huge amount from his life savings in the project was sincerely hoping to get the possession of the flat in 2016. A does not want to take the possession of the flat anymore. Aggrieved by the orders of the RERA Authority, A files a complaint before the Real Estate Appellate Tribunal (REAT).

• In the illustration mentioned above if the Promoter X is aggrieved by the decisions passed by RERA authority it can also approach REAT.

• X is a Promoter and and RERA authority being a regulatory authority imposes some fine on the project or the Promoter due to violation of any of the provision of the RERA. In such a case aggrieved by such a decision of RERA, Promoter can approach REAT.

In case of illustration 1, while filing the appeal Mr. A has to deposit just the standard court fee. But in case of illustrations 2 and 3 where Mr. X the promoter will be filing the appeal. When a promoter files an appeal with REAT it has to deposit the total amount that is to be paid to the allottee along with the total interest or compensation imposed on him by the adjudicating authority or the adjudicating officer at RERA. The amount can also vary from 30% of the penalty imposed on the promoter by the RERA Authority to any higher percentage as may be determined by the Appellate Tribunal in case of Illustration 3. And in some cases Promoter can be asked to deposit both the amounts as are mentioned in case of Illustration 2 and Illustration 3.

While deciding on the appeal filed by the Promoter UP REAT in G.S. Promoters Pvt. Ltd. Vs. Mayank Jain and Another dismissed the appeal on the grounds that the appeal filed by the promoter is defective as it did not comply with the provisions laid in Section 43(5) of the RERA Act. While passing the judgement the Hon’ble Appellate Tribunal also noted that t is well recognized that the Act of 2016 is a special legislation enacted with a social objective of safeguarding primarily interests of allottees who have invested their lifetime savings in buying a home of their dreams. No exemption from complete pre-deposit or the discretion to waive off the same is provided in the provisions of the Act. Therefore, as per literal rule of interpretation also, the Tribunal is needed to go by the wording of provisions mandating full pre-deposit, if the Appeal is to be entertained.

Limitation Period

There is a fixed period specified in the act in which any person can file an appeal in the REAT. The person has a time of 60 days from the date he receives any direction, order or decision from the adjudicating body. The Appellate Tribunal has the power that it may entertain the appeal even after this limitation period of 60 days, in case it is satisfied that there is a sufficient cause for not filling the appeal.

In Arpit Khosla And Another vs M/S Gardenia Aims Developers Hon’ble Allahabad High Court set aside the orders passed under two appeals passed by the UPREAT, and ruled that the applications moved by both the appellants before the Real Estate Appellate Tribunal seeking condonation of delay in filing their respective appeals against the orders dated 25.01.2018 and 22.02.2018 are allowed and delay is condoned. The matters are remitted to the Real Estate Appellate Tribunal for deciding the appeals on merit. The Hon’ble High Court also noted that The primary function of a court is to adjudicate the dispute between the parties and to advance substantial justice. Time limit fixed for approaching the court in different situations in not because on the expiry of such time a bad cause would transform into a good cause and the Rules of limitation are not meant to destroy the right of parties. They are meant to see that parties do not resort to dilatory tactics but seek their remedy promptly.

Powers of Appellate Tribunal:

For discharging its functions, the REAT is vested with the same powers as are vested in a Civil Court under Code of Civil Procedure (CPC), 1908. Though it is pertinent to mention that Appellate Tribunal is not bound with the procedures laid down by CPC and is guided by the principles of natural justice. Following is the list of powers enjoyed by the Appellate Tribunal under CPC:

1. It can summon and enforce the attendance of a person before it.
2. It can examine any person under oath
3. It can require the discovery and production of documents
4. It can receive evidence on affidavits
5. It has the powers to review its own decisions.
6. It can dismiss an application for nay default etc.
7. It has the powers to execute decisions passed by it in a similar manner as of a Civil court and such decisions shall be executable as a decree of Civil Court.
8. It may also send any order made it to a civil Court for its effective execution.

Second Appeal before the Hon’ble High Court:

If in case the person is aggrieved by the decisions passed by the Appellate Tribunal while hearing the appeal, he can file a second appeal before the Hon’ble High Court in whose jurisdiction the matter lies.

The appeal can lie before the High Court, in the following cases:

1. If it is satisfied that the case involves a substantial question of law, and the substantial question of law is precisely stated in the memorandum of the second appeal so filed. Upon satisfaction of the High Court that a substantial question of law is involved in any case, then before issuing notice it formulates that question.
2. If the decision was passed by the Appellate Tribunal without the appearance of appellant.
3. If while second hearing the respondent is allowed to argue on the question so formulated.

The limitation period to file the appeal before the High Court is sixty days from the date of communication or decision or order of the Appellate Tribunal. The High Court may also entertain the appeal in case of delay if it is satisfied that there is sufficient cause which prevented the appellant from filing the appeal in designated time. It is also pertinent to mention that no appeal can lie before the High court in case the decision passed by the appellate tribunal is made with the consent of both the parties. If in case the parties are still not satisfied with the orders passed by the High Court, then as a matter of constitutional right they can approach the Hon’ble Supreme Courtof India through Special Leave Petition.

Conclusion:

RERA Act, 2016 was passed with the objective of establishing the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure the sale in a real estate project is happening in an efficient and transparent manner. One other intent of the act was to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal. In furtherance of this objective only, a statutory provision in the Act has been made for the establishment of the Appellate Tribunal to hear appeals from the decisions, directions or orders of the RERA Authority. It has been openly welcomed by the general public as REAT can effectively examine the legality of orders passed by the RERA and decide whether to uphold or overturn them.