Case Note & Summary
The case involves a dispute between M/s H.M. Infra Tech Pvt. Ltd. (formerly a partnership firm) and the H.M. Tamborine Apartments Owners Association along with individual apartment owners. The appellant, the developer, had filed a suit (O.S. No. 8454/2016) seeking possession of the apartment complex and damages from the owners' association and its members. The respondents filed an application under Order 7 Rule 11 read with Section 151 CPC and Section 79 of the Real Estate (Regulation and Development) Act, 2016 (RERA) for rejection of the plaint. The trial court allowed the application, rejecting the plaint on the ground that the suit was barred by Section 79 of RERA. The appellant challenged this order by filing a Regular First Appeal under Section 96 CPC. The respondents also filed a Miscellaneous First Appeal against an earlier order, but the main focus was on the RFA. The High Court upheld the trial court's order, holding that the dispute regarding possession and damages falls within the purview of RERA, and the civil court has no jurisdiction. The court dismissed the appeal, confirming the rejection of the plaint.
Headnote
A) Real Estate Law - Bar on Civil Suits - Section 79 of the Real Estate (Regulation and Development) Act, 2016 - The court considered whether a suit for possession and damages filed by an apartment owners' association against the developer is barred under Section 79 of RERA. The court held that the dispute regarding possession and damages is a matter which the Authority or Appellate Tribunal is empowered to determine under RERA, and therefore the civil court has no jurisdiction. The plaint was rejected under Order 7 Rule 11 CPC. (Paras 1-10) B) Civil Procedure - Rejection of Plaint - Order 7 Rule 11 of the Code of Civil Procedure, 1908 - The court examined the application for rejection of plaint on the ground that the suit is barred by law. The court held that since the suit is barred under Section 79 of RERA, the plaint is liable to be rejected under Order 7 Rule 11(d) CPC. (Paras 5-10)
Issue of Consideration
Whether a civil suit for possession and damages filed by an apartment owners' association against a developer is barred under Section 79 of the Real Estate (Regulation and Development) Act, 2016, and whether the plaint is liable to be rejected under Order 7 Rule 11 of the Code of Civil Procedure, 1908.
Final Decision
The High Court dismissed the Regular First Appeal, confirming the trial court's order rejecting the plaint under Order 7 Rule 11 CPC read with Section 79 of RERA.
Law Points
- Section 79 of RERA bars civil courts from entertaining suits in respect of matters which the Authority or the Appellate Tribunal is empowered to determine
- Order 7 Rule 11 CPC for rejection of plaint when suit is barred by law
- Section 96 CPC for appeals against decrees
- Section 151 CPC for inherent powers
