T.CHITTY BABU Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, who is a Promoter of real estate, has come up questioning the validity of Sub-section (5) of Section 43 of the Real Estate (Regulation and Development) Act, 2016, whereunder a right of appeal to a Promoter is pre-conditioned by the deposit of total amount to be paid to an allottee of an apartment as may have been determined by the Authority/Adjudicating Officer under the Act, before entertaining the appeal and it being heard by the Appellate Tribunal.

(2.) The challenge to the validity of the provision has been occasioned on account of an order passed by the Adjudicating Officer on 17.09.2019. The second respondent had paid a booking advance under a Memorandum of Agreement dated 06.06.2012 for purchase of a flat being constructed by the petitioner in a project named as 'January'. The total sale consideration settled between the parties was Rs.48,47,400/- towards which the second respondent complainant advanced a sum of Rs.28,33,440/-. The flat was to be delivered within thirty months with a grace period of 90 days. The complaint was filed claiming that the flat is not complete and the complainant was put to heavy losses on account of such delay of the project, therefore, a relief was prayed for, alleging violation of Section 18 of the Act by moving an application before the Competent Authority under Section 71 read with Section 72 of the said Act.

(3.) The Competent Authority is the Adjudicating Officer as defined under Section 2 (a) of the Act, appointed by the Real Estates Regulatory Authority established under Sub-section (1) of Section 20, in consultation with the appropriate Government, who is or has been a District Judge as provided for in Section 71 (1) of the 2016 Act.