Agreement for Sale was executed in MOFA hence no jurisdiction of RERA?

By Dr. Sanjay Chaturvedi LLB, Ph.D.

Avinash Saraf, Neha Duggar Saraf V/s. Runwal Homes Pvt. Ltd (CC006000000000032) Order dated 13th Oct 2017

The Complainants contend that they have paid 97% of total consideration of the said flat. The respondent has specified in the agreement of sale that the possession of the flat shall be handed over to the complainants on or before August 20A16bst it has failed to hand it over till the date of the complaint. They further contend that under subvention scheme promoted by the respondent, respondent paid interest up to August 2016 under tripartite agreement. Respondent contends that the agreement of sale has been executed on1, A.11..2014 whereas RERA has come into effect from 01 May 2017. Hence, Maha RERA has no jurisdiction to entertain this complaint.

Maha RERA Observed: I find, the cause of action for claiming possession after the lapse of the agreed date of possession becomes a recurring cause of action. The claimants’ right to claim their money back or to claim possession continues from August 201,6 till the date of filing of this complaint. If the cause of action survives after coming into force of RERA, Maha RERA gets jurisdiction over all the disputes pertaining to the eligible real estate projects requiring registration u/s. 3.

The on-going projects bring with them the legacy of rights and liabilities created under the statutes of the land in general and The Indian Contract Act and MOFA in particular. Section 79 of RERA bars the jurisdiction of the civil court from entertaining any suit or proceeding in respect of any matter which the Authority, Adjudicating Officer or Appellate Tribunal is empowered by or under RERA to determine. Hence, the Authority gets the jurisdiction over such matters which the civil court had.

Credits: Landmark Judgements of RERA (Book)

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