MARVEL LANDMARKS PVT. LTD. vs THE STATE OF MAHARASHTRA AND ORS

Court
Bombay High Court
Case type
Writ Petition
Decided on
07-04-2026
<div> <b>2026:BHC-AS:16466</b><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> IN THE HIGH COURT OF JUDICATURE AT BOMBAY<br /> CIVIL APPELLATE JURISDICTION<br /> WRIT PETITION NO. 12121 OF 2024 <br /> Marvel Landmarks Pvt. Ltd. …Petitioner <br /> Versus<br /> The State of Maharashtra &amp; Ors …Respondents<br /> Mr. Amit Gharat, for Petitioner.<br /> Mr. Abhishek Kothari a/w Monish Jain &amp; Gaurav Nashikkar, i/b<br /> M J Partners, for Respondent No.5.<br /> Mr. R.S. Pawar, AGP for the Respondent-State. <br /> CORAM : SOMASEKHAR SUNDARESAN, J.<br /> RESERVED ON : January 22, 2026<br /> PRONOUNCED ON : April 7, 2026<br /> Judgement:<br /> 1. Rule. Rule is made returnable forthwith. By consent of the<br /> parties, heard finally. <br /> Context and Factual Background:<br /> 2. The Writ Petition raises an interesting question as to whether<br /> an order dated December 17, 2019 (“ Impugned Order ”) passed by the<br /> Learned Adjudicating Officer of the Real Estate Regulatory Authority<br /> Digitally<br /> signed by<br /> ASHWINI<br /> JANARDAN<br /> VALLAKATI<br /> Date:<br /> 2026.04.07<br /> 15:56:37<br /> +0530<br /> (“ Authority ”), is rendered non est by reason of the law declared by the<br /> ASHWINI<br /> JANARDAN<br /> VALLAKATI<br /> Supreme Court in 2021, interpreting the provisions of the Real Estate<br /> Page 1 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> (Regulation and Development) Act, 2016 (“ RERA Act ”). The prayer in<br /> this Writ Petition is to quash and set aside the Impugned Order and<br /> another order dated October 8, 2021 (“ Recovery Order ”) passed in<br /> recovery proceedings, on the premise that they are in conflict with the<br /> law subsequently declared by the Supreme Court. <br /> 3. The relevant facts for purpose of adjudicating this Petition<br /> fall in a rather narrow compass and are summarized below:-<br /> A] A Learned Adjudicating Officer of the Authority passed the<br /> Impugned Order directing refund of the amount of<br /> Rs.1,35,99,246/- along with interest @10.20% per annum paid to<br /> the Petitioner, Marvel Landmarks Pvt. Ltd. (“ Marvel ”) by<br /> Respondent No.5, Mr. Siddharth Mohan Palesha, (“ Flat<br /> Purchaser ”) until realisation;<br /> B] The Impugned Order was not challenged within the<br /> statutory period available for an Appeal under Section 44 of the<br /> RERA Act;<br /> C] On October 8, 2021, on account of non-compliance with the<br /> Impugned Order, an order was passed for issuance of recovery<br /> warrant (“ Recovery Order ”). Execution of RERA’s order for<br /> Page 2 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> refund of monies is to be effected as if the penalties were arrears<br /> of land revenue under the Maharashtra Land Revenue Code,<br /> 1966;<br /> D] On November 11, 2021, the Supreme Court passed a<br /> 1<br /> judgment in the case of Newtech which, according to Marvel,<br /> renders the Impugned Order and the Recovery Order non est ; and<br /> E] According to Marvel, an Adjudicating Officer can only pass<br /> orders relating to compensation while an order of refund cannot<br /> be passed by the Adjudicating Officer, and towards this end, the<br /> law declared in Newtech is sought to be pressed into service.<br /> Core Issue:<br /> 4. The short question to be considered for adjudicating in this<br /> Petition is whether pursuant to the law declared in Newtech , Marvel<br /> would be entitled to immunity from compliance with the Impugned<br /> Order on the premise that the law as declared in Newtech , has rendered<br /> the Impugned Order non est in the eyes of law. Put differently, the case<br /> of Marvel is that Newtech has rendered the Impugned Order, although<br /> passed in the past and having attained finality in the absence of a<br /> <i>1</i> <i>Newtech Promoters and Developers Pvt. Ltd. v. State of UP – (2021) 18 SCC</i><br /> <i>1</i><br /> Page 3 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> challenge under a statutory appeal, even now the Impugned Order can<br /> be quashed as being a product of exercise of power by an authority<br /> without jurisdiction. <br /> Contentions of the Parties:<br /> 5. Against this backdrop, I have heard at length Mr. Amit<br /> Gharte, Learned Advocate for Marvel and Mr. Abhishek Kothari,<br /> Learned Advocate for the Flat Purchasers, and, with their assistance,<br /> examined the materials relied upon by them in furtherance of their<br /> submissions. <br /> 6. Mr. Gharte would submit that in view of the law declared in<br /> Newtech , this Court should declare that the Learned Adjudicating<br /> Officer who passed the Impugned Order was wholly without<br /> jurisdiction. The jurisdiction to order a refund along with interest is<br /> unavailable under Section 71 of the RERA Act, he would submit,<br /> contending therefore, that any attempt to execute the Impugned Order<br /> would be illegal. Mr. Gharte would also rely upon a decision of a<br /> 2<br /> Learned Division Bench of this Court in the case of Marveledge . He<br /> would also draw my attention to other decisions of the same Learned<br /> <i>2</i> <i> Marveledge Realtors Pvt. Ltd. v. State of Maharashtra – judgement dated </i><br /> <i>September 13, 2024 in Writ Petition No.10912 of 2022</i><br /> Page 4 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> Division Bench following the ruling in Marveledge , and to a decision of a<br /> 3<br /> Learned Single Judge in a Petition filed by this very Petitioner , wherein<br /> a stay was granted on an order directing refund as also an order of<br /> proclamation issued in recovery proceedings. A final ruling the aforesaid<br /> Writ Petition regard did <i> </i> not transpire, since the parties settled the<br /> dispute and the Petition was withdrawn. <br /> 7. Mr. Gharte would further rely on a decision of the Supreme<br /> 4<br /> Court in Kiran Singh and in particular, Paragraph 6 thereof, which<br /> reads thus:-<br /> <i>“6. </i> <i>The answer to these contentions must depend on what the position in</i><br /> <i>law is when a court entertains a suit or an appeal over which it has no</i><br /> <i>jurisdiction, and what the effect of Section 11 of the Suits Valuation Act is on</i><br /> <i>that position. It is a fundamental principle well established that a decree</i><br /> <i>passed by a court without jurisdiction is a nullity, and that its invalidity</i><br /> <i>could be set up whenever and wherever it is sought to be enforced or relied</i><br /> <i>upon, even at the stage of execution and even in collateral proceedings. A</i><br /> <i>defect of jurisdiction, whether it is pecuniary or territorial, or whether it is in</i><br /> <i>respect of the subject-matter of the action, strikes at the very authority of the</i><br /> <i>court to pass any decree, and such a defect cannot be cured even by consent</i><br /> <i>of parties. If the question now under consideration fell to be determined only</i><br /> <i>on the application of general principles governing the matter, there can be</i><br /> <i>no doubt that the District Court of Monghyr was coram non judice, and that</i><br /> <i>3</i> <i> Marvel Landmarks Pvt. Ltd. v. State of Maharashtra and Ors. – judgement </i><br /> <i>dated July 24, 2024 in Writ Petition No.10088 of 2024</i><br /> <i>4</i> <i>Kiran Singh &amp; Ors v. Chaman Paswan &amp; Ors. – (1954) 1 SCC 710 </i> <i> </i> <i> </i><br /> Page 5 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>its judgment and decree would be nullities. The question is what is the effect</i><br /> <i>of Section 11 of the Suits Valuation Act on this position.</i><br /> <i>[Emphasis Supplied] </i><br /> 8. Based on the aforesaid reasoning, Mr. Gharte would also<br /> submit that, after the declaration of the law in Newtech , there are<br /> instances where RERA itself has not been enforcing its refund orders on<br /> the premise that they are a nullity. Therefore, he desires that the Writ<br /> Court must endorse such a position and positively declare the Impugned<br /> Order and the Recovery Order are a nullity. <br /> 9. In sharp contrast, Mr. Abhishek Kothari, Learned Advocate<br /> on behalf of the Flat Purchaser, would submit that when the Impugned<br /> Order was passed, the Learned Adjudicating Officer was validly<br /> discharging the functions assigned to him by the Authority, and that he<br /> declared the refund to be due in exercise of such valid authority. Mr.<br /> Kothari would submit that under the provisions of the RERA Act, the<br /> Authority is to consist of a Chairperson and not less than two full-time<br /> members. Likewise, for the purposes of exercising jurisdiction under<br /> Section 71 of the Act, Adjudicating Officers are to be appointed by<br /> RERA. Regardless of whether it is an Adjudicating Officer or a Whole<br /> Page 6 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> Time Member (“ WTM ”) discharging the functions, it would be the<br /> Authority that is discharging the functions when they so act. <br /> 10. Mr. Kothari would point to Section 30(c) of the RERA Act, to<br /> indicate that no act or proceeding of the Authority shall become invalid,<br /> merely by a reason of any irregularity in the procedure of the Authority,<br /> not affecting the merits of the case. He would further submit that the<br /> Impugned Order was amenable to an Appeal in terms of Section 43(5) of<br /> the RERA Act. Any person aggrieved by any direction, decision or order<br /> made by RERA or by an Adjudicating Officer is entitled to file an Appeal<br /> before the Appellate Tribunal. Such Appeal is required to be filed within<br /> a period of 60 days with a further extension of 60 days, during which a<br /> delay in filing an Appeal may be condoned by the Appellate Tribunal.<br /> Since Marvel did not challenge the Impugned Order at all, the<br /> Impugned Order became final and is executable as if it were arrears of<br /> land revenue, and therefore, such crystallised rights cannot be undone<br /> by Marvel by a subsequent judgement. In any case, Marvel has come to<br /> Court with significant delay from date of the Impugned Order and the<br /> writ jurisdiction cannot be used to re-open closed matters that have<br /> attained finality. Once the Impugned Order became executable as a<br /> decree on the expiry of 120 days from when it was passed, having<br /> attained finality, it would follow that even if the law declared in Newtech<br /> Page 7 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> were to be somehow adopted by Marvel, it cannot disturb positions that<br /> have already been crystallised and have attained finality. <br /> 11. Even while Newtech was decided on November 11, 2021, this<br /> Petition has been filed only on August 26, 2024. Therefore, Mr. Kothari<br /> would submit that there are two layers of delay and laches that visit this<br /> Petition – the first is the delay from the passing of the Impugned Order<br /> in December 2019, by which count the delay is of nearly five years; and<br /> second, even after the law was declared in Newtech , Marvel has come<br /> nearly three years late. Therefore, Mr. Kothari would submit that this<br /> Court, in exercise of its discretionary extraordinary jurisdiction, ought<br /> not to entertain this Petition or grant any relief to a party that is taking a<br /> chance at disturbing crystallised rights that have already partaken the<br /> character of a decree. <br /> 12. Mr. Kothari would further submit that even in the execution<br /> proceedings, not once did Marvel raise any issue about purportedly<br /> benefiting from the law declared in Newtech . In fact, it is when the<br /> Collector (Respondent No.3 and 4, the District Collector Pune and the<br /> Tehsildar <i>,</i> Taluka Haveli) abdicated their duties that the Flat Purchaser<br /> was constrained to file Writ Petition No.2271 of 2024 (“ WP 2271 ”)<br /> seeking a mandamus and a direction to the Collector to deal with the<br /> Page 8 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> matter. It is in that petition that the contention of Newtech having<br /> denuded the Impugned Order of enforceability has been taken by this<br /> Petitioner. As a backlash to the filing of WP 2271, the present Petition<br /> has been filed in August 2024. <br /> 13. Mr. Kothari would also point to Marvel having been admitted<br /> to a Corporate Insolvency Resolution Process (“ CIRP ”) under the<br /> Insolvency and Bankruptcy Code, 2016 (“ IBC ”) on June 13, 2025 which<br /> came to be withdrawn in view of a settlement being arrived at in those<br /> proceedings recorded before the Adjudicating Authority under the IBC.<br /> Yet, an Interim Application No.10471 of 2025 was filed in the WP 2271<br /> on July 19, 2025, claiming that Marvel was a protectee of the<br /> moratorium under the IBC. Even in this application, Marvel did not<br /> employ the stance raised in this Writ Petition, namely, that the<br /> Impugned Order is non est. Therefore, he would submit that this Court<br /> ought not to exercise its discretionary in favour of such a party. <br /> 14. Mr. Kothari would rely on the decision of the Supreme Court<br /> 5<br /> in Saurashtra Kutch Stock Exchange , to submit that a judicial decision,<br /> while retrospective, would not disturb matters that are res judicata or<br /> <i>5</i> <i>Assistant Commissioner, Income Tax, Rajkot v. Saurashtra Kutch Stock </i><br /> <i>Exchange Ltd. – 2008 (14) SCC 171</i><br /> Page 9 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> where accounts have been settled in the meantime. He would rely on the<br /> following extracts:-<br /> <i>35.</i> <i>In our judgment, it is also well settled that a judicial decision acts</i><br /> <i>retrospectively. According to Blackstonian theory, it is not the function of the</i><br /> <i>court to pronounce a “new rule” but to maintain and expound the “old</i><br /> <i>one”. In other words, Judges do not make law, they only discover or find the</i><br /> <i>correct law. The law has always been the same. If a subsequent decision</i><br /> <i>alters the earlier one, it (the later decision) does not make new law. It only</i><br /> <i>discovers the correct principle of law which has to be applied</i><br /> <i>retrospectively. To put it differently, even where an earlier decision of the</i><br /> <i>court operated for quite some time, the decision rendered later on would</i><br /> <i>have retrospective effect clarifying the legal position which was earlier not</i><br /> <i>correctly understood.</i><br /> <i>36.</i> <i>Salmond in his well known work states:</i><br /> <i>“[T]he theory of case law is that a judge does not make law; he merely</i><br /> <i>declares it; and the overruling of a previous decision is a declaration that</i><br /> <i>the supposed rule never was law. Hence any intermediate transactions made</i><br /> <i>on the strength of the supposed rule are governed by the law established in</i><br /> <i>the overruling decision. The overruling is retrospective, except as regards</i><br /> <i>matters that are res judicatae or accounts that have been settled in the</i><br /> <i>meantime.”</i><br /> <i>[Emphasis Supplied]</i><br /> 6<br /> 15. Further reliance is placed on UP Jal Nigam to indicate that<br /> delay in approaching the Writ Court would be a material factor for not<br /> <i>6</i> <i>U.P. Jal Nigam v. Jaswant Singh – (2006) 11 SCC 464</i><br /> Page 10 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> granting relief, even if relief had been granted in earlier timely writs<br /> invoking the same principles of law. Various employees of the Uttar<br /> Pradesh Jal Nigam had been retired on superannuation at the age of 58<br /> years. Some of them challenged the retirement and were allowed to<br /> continue up to the age of 60 years. This led to Appeals in the Supreme<br /> 7<br /> Court in the case of Harwindra Kumar , which ruled that<br /> superannuation would occur at the age of 60. During the pendency of<br /> such proceedings, a set of Writ Petitions came to be filed in the High<br /> Court by employees who had retired long back at the age of 58. Some of<br /> the petitioners who were yet to retire got relief with interim orders<br /> allowing them to continue in service. All the writs came to be disposed<br /> of in the light of the ruling in Harwindra Kumar . <br /> 16. In appeal, the Supreme Court was faced with the question as<br /> to whether relief should be granted to other similarly placed persons<br /> who were not vigilant and did not stay alert to challenge their<br /> retirement and had gone on to accept the same, but much later filed<br /> Writ Petitions invoking the judgement in Harwindra Kumar . <i> </i> This was<br /> considered by the Supreme Court as a serious question and was<br /> answered in UP Jal Nigam , essentially holding that those who are not<br /> alert and do not come to Court in time have acquiesced in accepting<br /> <i>7 </i> <i>Harwindra Kumar v. Chief Engineer, Karmik &amp; Ors. – ( 2005) 13 SCC 300</i> <i> </i> <i> </i><br /> Page 11 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> their retirement without challenge in time. If they had been vigilant and<br /> had come to Court along with the others who eventually succeeded, they<br /> could have been given the same treatment but the Court should be very<br /> slow in granting reliefs to those who did not come in time. Therefore,<br /> the Court refused to come to the aid of the employees who did not<br /> contemporaneously approach the Writ Court on the premise that the<br /> discretionary power to issue a writ would not be exercised in their<br /> favour. <br /> 17. Mr. Kothari would also rely upon the judgement in Bhailal<br /> 8<br /> Bhai whereby 31 appeals filed by State of Madhya Pradesh challenging<br /> disposal of petitions filed by tobacco dealers on the sales tax on tobacco<br /> was considered. The Supreme Court considered that a tax applicable<br /> before independence in the State of Madhya Bharat would have been<br /> saved within the saving provisions of Article 304(a) of the Constitution<br /> of India. It was held that the tax was in contravention of the provisions<br /> of Article 301 of the Constitution and had been rightly held to be invalid<br /> and those assessments were invalid in law. At the same time, the<br /> Supreme Court held (in para 17) that Article 226 is not intended to<br /> supersede all the modes of relief that are available to the parties and<br /> <i>8 </i> <i>State of Madhya Pradesh &amp; Ors. v. Bhailal Bhai &amp; Ors. – 1964 SCC OnLine </i><br /> <i>SC 10</i><br /> Page 12 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> that the power to give relief under Article 226 must necessarily factor in<br /> the delay on the part of the aggrieved party in seeking a special<br /> extraordinary remedy and the excuse presented for seeking such<br /> remedy. Therefore, the following extracts are noteworthy. <br /> <i>At the same time we cannot lose sight of the fact that the special remedy</i><br /> <i>provided in Article 226 is not intended to supersede completely the modes of</i><br /> <i>obtaining relief by an action in a Civil Court or to deny defences legitimately</i><br /> <i>open in such actions. It has been made clear more than once that the power to</i><br /> <i>give relief under Article 226 is a discretionary power. This is specially true in</i><br /> <i>the case of power to issue writs in the nature of mandamus. Among the several</i><br /> <i>matters which the High Courts rightly take into consideration in the exercise</i><br /> <i>of that discretion is the delay made by the aggrieved party in seeking this</i><br /> <i>special remedy and what excuse there is for it. Another is the nature of</i><br /> <i>controversy of facts and law that may have to be decided as regards the</i><br /> <i>availability of consequential relief. Thus, where, as in these cases, a person</i><br /> <i>comes to the court for relief under Article 226 on the allegation that he has</i><br /> <i>been assessed to tax under a void legislation and having paid it under a</i><br /> <i>mistake is entitled to get it back, the court, if it finds that the assessment was</i><br /> <i>void, being made under a void provision of law, and the payment was made by</i><br /> <i>mistake, is still not bound to exercise its discretion directing repayment.</i><br /> <i>Whether repayment should be ordered in the exercise of this discretion will</i><br /> <i>depend in each case on its own facts and circumstances. It is not easy nor is it</i><br /> <i>desirable to lay down any Rule for universal application. It may however be</i><br /> <i>stated as a general Rule that if there has been unreasonable delay the court</i><br /> <i>ought not ordinarily to lend its aid to a party by this extraordinary remedy of</i><br /> <i>mandamus. Again, where even if there is no such delay the Government or the</i><br /> <i>statutory authority against whom the consequential relief is prayed for raises</i><br /> <i>a prima facie triable issue as regards the availability of such relief on the</i><br /> Page 13 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>merits on the grounds like limitation the court should ordinarily refuse to issue</i><br /> <i>the writ of mandamus for such payment. In both these kinds of cases it will be</i><br /> <i>sound use of discretion to leave the party to seek his remedy by the ordinary</i><br /> <i>mode of action in a Civil Court and to refuse to exercise in his favour the</i><br /> <i>extraordinary remedy under Article 226 of the Constitution.</i><br /> <i>[Emphasis Supplied]</i><br /> 18. In support of his contention, under Section 30 of the RERA<br /> Act, namely, that irregularity in procedure not affecting the merits of the<br /> case would not invalidate the decision, Mr. Kothari would rely upon BK<br /> 9<br /> Srinivasan and in particular paragraph 11 which is extracted below:-<br /> <i>11.</i> <i>The only other provision of the Act to which reference is necessary is,</i><br /> <i>what we may call, the “Ganga” clause [ According to Hindu tradition the</i><br /> <i>waters of the Ganga purify, cleanse the sins and remedy all insufficiencies.].</i><br /> <i>Section 76-J which provides for “Validation of acts and proceedings”. It is</i><br /> <i>as follows:</i><br /> <i>“76-J. Validation of acts and proceedings.—No act done or</i><br /> <i>proceeding taken under this Act shall be questioned on the ground</i><br /> <i>merely of,</i><br /> <i>(a) the existence of any vacancy in, or any defect in the constitution of</i><br /> <i>the Board or any Planning Authority;</i><br /> <i>(b) any person having ceased to be a member;</i><br /> <i>(c) any person associated with the Board or any Planning Authority</i><br /> <i>under Section 4-F having voted in contravention of the said section; or</i><br /> <i>(d) the failure to serve a notice on any person, where no substantial</i><br /> <i>injustice has resulted from such failure; or</i><br /> <i>9 </i> <i>B. K. Srinivasan &amp; Ors. v. State of Karnataka – (1987) 1 SCC 658</i><br /> Page 14 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>(e) any omission, defect or irregularity not affecting the merits of the</i><br /> <i>case.</i><br /> 19. Mr. Kothari would submit that the provisions of Section 76-J<br /> extracted in the aforesaid case were a “ Ganga Clause ” which is meant to<br /> cleanse and purify any insufficiency and that is precisely what is codified<br /> in Section 30(c) of the RERA Act. Towards this end, he would submit<br /> that at the relevant time RERA had issued Circular No.7 of 2017 dated<br /> July 24, 2017 stipulating the Standard Operating Procedure for dealing<br /> with complaints by Flat Purchasers. The said circular provides that once<br /> a complaint is received online, it is automatically assigned by the<br /> software to the Chairperson and the two WTMs, and where a person<br /> seeks compensation, the case would then be transferred by them to an<br /> Adjudicating Officer. He would submit that this Standard Operating<br /> Procedure was essentially based on the law as it then stood and was then<br /> understood. In any case, the declaration of the law in Newtech came<br /> much later. Therefore, Mr. Kothari would contend, even if it were to be<br /> declared that the process adopted by the Authority was declared to be in<br /> conflict with the requirement of law, such a procedural outcome would<br /> be saved by the codified position obtaining from Section 30(c) of the<br /> RERA Act. Mr. Kothari would also point out that in accordance with the<br /> rules made under the RERA Act, namely, the Maharashtra Real Estate<br /> Page 15 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> (Regulation and Development) Rules, 2016, a specific Form-M is<br /> stipulated for complaints to be made to the Authority. The Flat<br /> Purchaser had made a complaint in Form-M. This complaint was<br /> therefore processed by the Authority and since it had prayers for<br /> compensation as well as for refund, the Authority was entitled to validly<br /> assign the case to an Adjudicating Officer. If that process is considered<br /> improper by a reading of the law in Newtech , he would submit that the<br /> Impugned Order which is on merits, stands protected by Section 30(c). <br /> ANALYSIS AND FINDINGS:<br /> Scheme of RERA Act:<br /> 20. Before dealing with the aforesaid contentions, a broad<br /> understanding of the scheme of the RERA Act would be in order. The<br /> following provisions of the RERA Act are noteworthy.<br /> 21. Section 18 stipulates the substantial rights of an allottee of a<br /> unit upon non-performance by the promoter of a project, including the<br /> return of amounts paid to the promoter of a project : <br /> <i>18. </i> <i>Return of amount and compensation.—(1) If the promoter fails to</i><br /> <i>complete or is unable to give possession of an apartment, plot or building,— </i><br /> Page 16 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>(a) in accordance with the terms of the agreement for sale or, as the</i><br /> <i>case may be, duly completed by the date specified therein; or </i><br /> <i>(b) due to discontinuance of his business as a developer on account of</i><br /> <i>suspension or revocation of the registration under this Act or for any</i><br /> <i>other reason, </i><br /> <i>he shall be liable on demand to the allottees, in case the allottee wishes to</i><br /> <i>withdraw from the project, without prejudice to any other remedy available,</i><br /> <i>to return the amount received by him in respect of that apartment, plot,</i><br /> <i>building, as the case may be, with interest at such rate as may be prescribed</i><br /> <i>in this behalf including compensation in the manner as provided under this</i><br /> <i>Act: </i><br /> <i>Provided that where an allottee does not intend to withdraw from the</i><br /> <i>project, he shall be paid, by the promoter, interest for every month of delay,</i><br /> <i>till the handing over of the possession, at such rate as may be prescribed. </i><br /> <i>(2) </i> <i>The promoter shall compensate the allottees in case of any loss caused</i><br /> <i>to him due to defective title of the land, on which the project is being</i><br /> <i>developed or has been developed, in the manner as provided under this Act,</i><br /> <i>and the claim for compensation under this subsection shall not be barred by</i><br /> <i>limitation provided under any law for the time being in force. </i><br /> <i>(3) </i> <i>If the promoter fails to discharge any other obligations imposed on</i><br /> <i>him under this Act or the rules or regulations made thereunder or in</i><br /> <i>accordance with the terms and conditions of the agreement for sale, he shall</i><br /> <i>be liable to pay such compensation to the allottees, in the manner as</i><br /> <i>provided under this Act.</i><br /> <i>[Emphasis Supplied]</i><br /> Page 17 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> 22. It is clear that Section 18 is the substantive statutory right to<br /> protections when the allottee of premises is a victim of non-<br /> performance. The protections include a full refund and termination of<br /> contract; specific relief of the contract with statutory interest for the<br /> delayed performance; compensation due to defect in title without being<br /> impeded by limitation; and compensation in terms of other provisions<br /> of the RERA Act.<br /> 23. Section 21 deals with the composition of RERA (the phrase<br /> used for it is “Authority”) while Section 25 provides for administrative<br /> powers of the Chairperson. Essentially, RERA comprises a Chairperson<br /> and at least two WTMs, with the Chairperson being the chief executive<br /> and administrative head of RERA. These provisions read thus:<br /> <i>21. </i> <i>Composition of Authority.—The Authority shall consist of a</i><br /> <i>Chairperson and not less than two whole time Members to be appointed by</i><br /> <i>the appropriate Government.</i><br /> <i>25. </i> <i>Administrative powers of Chairperson.—The Chairperson shall have</i><br /> <i>powers of general superintendence and directions in the conduct of the</i><br /> <i>affairs of Authority and he shall, in addition to presiding over the meetings</i><br /> <i>of the Authority, exercise and discharge such administrative powers and</i><br /> <i>functions of the Authority as may be prescribed.</i><br /> <i>[Emphasis Supplied]</i><br /> Page 18 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> 24. Section 28 envisages the role of other officers and employees<br /> of RERA. When read with Section 71, which provides for appointment of<br /> a judicial officer for purposes of adjudicating claims for compensation.<br /> The Adjudicating Officer appointed by RERA under Section 71, when<br /> read with Section 28(2) would inexorably point to the Adjudicating<br /> Officer being an employee of RERA. These provisions read thus:<br /> <i>28. </i> <i>Officers and other employees of Authority.—(1) The appropriate</i><br /> <i>Government may, in consultation with the Authority appoint such officers</i><br /> <i>and employees as it considers necessary for the efficient discharge of their</i><br /> <i>functions under this Act who would discharge their functions under the</i><br /> <i>general superintendence of the Chairperson.</i><br /> <i>(2) The salary and allowances payable to, and the other terms and</i><br /> <i>conditions of service of, the officers and of the employees of the Authority</i><br /> <i>appointed under sub-section (1) shall be such as may be prescribed.</i><br /> <i>71. </i> <i>Power to adjudicate.—(1) For the purpose of adjudging compensation</i><br /> <i>under sections 12, 14, 18 and section 19, the Authority shall appoint, in</i><br /> <i>consultation with the appropriate Government, one or more judicial officer</i><br /> <i>as deemed necessary, who is or has been a District Judge to be an</i><br /> <i>adjudicating officer for holding an inquiry in the prescribed manner, after</i><br /> <i>giving any person concerned a reasonable opportunity of being heard: </i><br /> <i>Provided that any person whose complaint in respect of matters covered</i><br /> <i>under sections 12, 14, 18 and section 19 is pending before the Consumer</i><br /> <i>Disputes Redressal Forum or the Consumer Disputes Redressal Commission</i><br /> <i>or the National Consumer Redressal Commission, established under section</i><br /> <i>9 of the Consumer Protection Act, 1986 (68 of 1986), on or before the</i><br /> Page 19 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>commencement of this Act, he may, with the permission of such Forum or</i><br /> <i>Commission, as the case may be, withdraw the complaint pending before it</i><br /> <i>and file an application before the adjudicating officer under this Act. </i><br /> <i>(2) </i> <i>The application for adjudging compensation under sub-section (1),</i><br /> <i>shall be dealt with by the adjudicating officer as expeditiously as possible</i><br /> <i>and dispose of the same within a period of sixty days from the date of receipt</i><br /> <i>of the application: </i><br /> <i>Provided that where any such application could not be disposed of within the</i><br /> <i>said period of sixty days, the adjudicating officer shall record his reasons in</i><br /> <i>writing for not disposing of the application within that period. </i><br /> <i>(3) </i> <i>While holding an inquiry the adjudicating officer shall have power to</i><br /> <i>summon and enforce the attendance of any person acquainted with the facts</i><br /> <i>and circumstances of the case to give evidence or to produce any document</i><br /> <i>which in the opinion of the adjudicating officer, may be useful for or relevant</i><br /> <i>to the subject matter of the inquiry and if, on such inquiry, he is satisfied that</i><br /> <i>the person has failed to comply with the provisions of any of the sections</i><br /> <i>specified in sub-section (1), he may direct to pay such compensation or</i><br /> <i>interest, as the case any be, as he thinks fit in accordance with the provisions</i><br /> <i>of any of those sections.</i><br /> <i>[Emphasis Supplied]</i><br /> 25. Section 81 of the RERA Act provides for RERA delegating<br /> authority to any officer <i>,</i> by general or special order to carry out its<br /> functions under the Act, except for the power to make regulations under<br /> the Act. This provision reads as follows:<br /> Page 20 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>81. Delegation.—The Authority may, by general or special order in writing,</i><br /> <i>delegate to any member, officer of the Authority or any other person subject</i><br /> <i>to such conditions, if any, as may be specified in the order, such of its</i><br /> <i>powers and functions under this Act (except the power to make regulations</i><br /> <i>under section 85), as it may deem necessary.</i><br /> <i>[Emphasis Supplied]</i><br /> 26. The scheme of the aforesaid provisions is clear – the RERA is<br /> essentially a regulatory authority established under the RERA Act. The<br /> design of RERA as a regulator is quite akin to the design of many<br /> regulators, where the three pillars of State are rolled into one body<br /> corporate. RERA has law-making powers under Section 85, and<br /> therefore, Section 81 makes it clear that such legislative function has to<br /> be carried out without any delegation of such power to any officer of<br /> RERA. The quasi-judicial powers includes the power to award<br /> compensation, where an adjudicatory role has to be played – for this<br /> purpose, to maintain separation of powers and judicial independence,<br /> the Adjudicating Officers who are appointed are meant to have judicial<br /> experience and are appointed to play such adjudicatory function. <br /> 27. Administrative oversight over them would still be with RERA,<br /> with the Chairperson at the helm of affairs, but the Adjudicating Officers<br /> need to discharge a quasi-judicial role independently, and therefore the<br /> Page 21 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> separation of powers is evident from Section 71 of the Act. All the rest of<br /> the functions, which include registration and regulation of a nature of<br /> prudential regulation and enforcement are executive functions, which<br /> are to be run under the overall superintendence of RERA (namely, the<br /> Chairperson and at least two WTMs) with such functions being carried<br /> out by officials and employees of RERA. <br /> 28. What becomes clear is that the adjudication of compensation<br /> is something that an Adjudicating Officer alone can deal with while<br /> other powers, save and except the power to make subordinate<br /> legislation, may be exercised by any officer to whom such power is<br /> assigned by RERA. The matter in hand involves the Impugned Order<br /> having been passed for issuance of a refund, and such power having<br /> been exercised by an Adjudicating Officer. This is not a case of an<br /> officer who is not a judicial Adjudicating Officer having granted<br /> compensation – something directly contrary to the statutory scheme of<br /> the RERA Act.<br /> Analysis of Newtech:<br /> 29. Against this backdrop, the contention about Newtech having<br /> implications for this Petition needs to be examined to answer whether<br /> Page 22 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> the exercise of power of directing a refund can ever be effected by an<br /> Adjudicating Officer. In Newtech , complaints were instituted by home<br /> buyers for refund of the investments made by them in the units<br /> developed by the promoters of the project in question. An order of<br /> refund was passed by a WTM. The promoter of the project challenged<br /> the direction in the Allahabad High Court on the ground that the WTM<br /> had no jurisdiction to issue orders of refund and only the Adjudicating<br /> Officer could issue such an order. The High Court rejected the writ<br /> petitions and the matter reached the Supreme Court, which dismissed<br /> the appeals challenging the High Court judgement. When doing so, the<br /> Supreme Court, among others framed the following question:<br /> <i>2.</i> <i>Whether the Authority has jurisdiction to direct return/refund of the</i><br /> <i>amount to the allottee under Sections 12, 14, 18 and 19 of RERA or the</i><br /> <i>jurisdiction exclusively lies with the adjudicating officer under Section 71 of</i><br /> <i>RERA?</i><br /> <i>[Emphasis Supplied]</i><br /> 30. After analysing the contentions of the parties, answering that<br /> the WTM has the authority to direct a refund, the Supreme Court<br /> concluded thus:<br /> <i>85.</i> <i>From the scheme of the Act of which a detailed reference has been</i><br /> <i>made and taking note of power of adjudication delineated with the Regulatory</i><br /> Page 23 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>Authority and adjudicating officer, what finally culls out is that although the</i><br /> <i>Act indicates the distinct expressions like “refund”, “interest”, “penalty” and</i><br /> <i>“compensation”, a conjoint reading of Sections 18 and 19 clearly manifests</i><br /> <i>that when it comes to refund of the amount, and interest on the refund amount,</i><br /> <i>or directing payment of interest for delayed delivery of possession, or penalty</i><br /> <i>and interest thereon, it is the Regulatory Authority which has the power to</i><br /> <i>examine and determine the outcome of a complaint. At the same time, when it</i><br /> <i>comes to a question of seeking the relief of adjudging compensation and</i><br /> <i>interest thereon under Sections 12, 14, 18 and 19, the adjudicating officer</i><br /> <i>exclusively has the power to determine, keeping in view the collective reading</i><br /> <i>of Section 71 read with Section 72 of the Act. If the adjudication under</i><br /> <i>Sections 12, 14, 18 and 19 other than compensation as envisaged, is extended</i><br /> <i>to the adjudicating officer as prayed that, in our view, may intend to expand</i><br /> <i>the ambit and scope of the powers and functions of the adjudicating officer</i><br /> <i>under Section 71 and that would be against the mandate of the 2016 Act.</i><br /> <i>[Emphasis Supplied]</i><br /> 31. Marvel relies primarily on the last part of Paragraph 85<br /> extracted above i.e. observations about adjudication of facets other than<br /> compensation by the Adjudicating Officer. Based on these observations,<br /> Marvel contends that the Supreme Court has squarely held that the<br /> Adjudicating Officer could never exercise any power other than<br /> adjudication of compensation and that such adjudication would expand<br /> the ambit and scope of the functions of the Adjudicating Officer under<br /> Section 71 of the RERA Act and be contrary to the mandate of the RERA<br /> Act. <br /> Page 24 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> 32. In Newtech , the Supreme Court was dealing with a<br /> contention that the WTM could never exercise the power to direct a<br /> refund. The analysis and findings of the Supreme Court in Newtech ,<br /> essentially are responsive to whether the WTM could have exercised<br /> jurisdiction to direct a refund. The Supreme Court was not dealing with<br /> a contention that the Adjudicating Officer could be delegated the power<br /> to direct a refund. Therefore, in my view, one must not lose the nuance<br /> with which the binding precedential nature of contents of Newtech must<br /> be discerned. What constitutes a precedent is subject matter of<br /> numerous well-settled iterations by the Supreme Court. The following<br /> 10<br /> extract from Ravi Ranjan should suffice:<br /> <i>It is well settled that a judgment is a precedent for the issue of law that is</i><br /> <i>raised and decided. The judgment has to be construed in the backdrop of the</i><br /> <i>facts and circumstances in which the judgment has been rendered. Words,</i><br /> <i>phrases and sentences in a judgment, cannot be read out of context. Nor is a</i><br /> <i>judgment to be read and interpreted in the manner of a statute. It is only the</i><br /> <i>law as interpreted by in an earlier judgment, which constitutes a binding</i><br /> <i>precedent, and not everything that the Judges say.</i><br /> <i>[Emphasis Supplied]</i><br /> <i>10 Ravi Ranjan Developers Pvt. Ltd. Vs. Aditya Kumar Chatterjee – 2022 SCC </i><br /> <i>OnLine SC 568</i><br /> Page 25 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> 33. Seen in that light, in Newtech , the Supreme Court essentially<br /> held that the WTM can indeed exercise the power to direct a refund.<br /> The Supreme Court did not at all venture into what the Adjudicating<br /> Officer cannot do. The Supreme Court only repelled the contention of<br /> the appellants before it that the Adjudicating Officer alone could deal<br /> with adjudication of a refund, and in that context indicated that<br /> extrapolating adjudication of issues beyond compensation may expand<br /> the ambit and scope of the Adjudicating Officer’s powers under Section<br /> 71 of the Act. The Supreme Court took care to state that the<br /> extrapolated jurisdiction of the Adjudicating Officer “ as prayed ” by the<br /> appellants in Newtech , may expand the ambit and scope of the powers<br /> and functions under Section 71 of the RERA Act. The Supreme Court<br /> was not dealing with a case of a positive delegation to the Adjudicating<br /> Officer under Section 81 of the Act.<br /> 34. I have already extracted and discussed Section 71 of the Act<br /> above – that provision exclusively confers adjudication of compensation<br /> on the Adjudicating Officer. It preserves this subject for that officer’s<br /> jurisdiction alone. It is not a provision that limits what else may be<br /> delegated to the Adjudicating Officer, in particular, when one reads it<br /> with Section 81 of the RERA Act, which is also extracted and analysed<br /> above. <br /> Page 26 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> 35. Under Section 81, any power and function of RERA other<br /> than the legislative function may be delegated to any officer of RERA.<br /> The Adjudicating Officer is but an officer of RERA. It would follow that<br /> there is a power to delegate any of RERA’s powers and functions to the<br /> Adjudicating Officer. What the scheme of the RERA Act prohibits is the<br /> delegation of the power to adjudicate compensation <i>,</i> exercisable solely<br /> by the Adjudicating Officer to any other officer because that would be<br /> contrary to the requirement that quasi-judicial adjudication of<br /> compensation must necessarily vest in the Adjudicating Officer <i>,</i> who is<br /> meant to be a judicial officer.<br /> 36. In that light, another question framed by the Supreme Court<br /> in Newtech – about delegation of powers – becomes relevant. It is as<br /> follows:<br /> <i>3. </i> <i>Whether Section 81 of RERA authorises the Authority to delegate its</i><br /> <i>powers to a Single member of the Authority to hear complaints instituted</i><br /> <i>under Section 31 of RERA?</i><br /> <i>[Emphasis Supplied]</i><br /> 37. In dealing with the aforesaid question, the Supreme Court set<br /> out the following analysis:<br /> Page 27 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>86.</i> <i>It is the specific stand of the respondent Authority of the State of Uttar</i><br /> <i>Pradesh that the power has been delegated under Section 81 to the Single</i><br /> <i>Member of the Authority only for hearing complaints under Section 31 of the</i><br /> <i>Act. To meet out the exigency, the Authority in its meeting held on 14-8-2018,</i><br /> <i>had earlier decided to delegate the hearing of complaints to the Benches</i><br /> <i>comprising of two members each but later looking into the volume of</i><br /> <i>complaints which were filed by the homebuyers which rose to about 36,826</i><br /> <i>complaints, the Authority in its later meeting held on 5-12-2018 empowered</i><br /> <i>the Single Member to hear the complaints relating to refund of the amount</i><br /> <i>filed under Section 31 of the Act.</i><br /> <i>107.</i> <i>Pursuant to the delegation of power to the Single Member of the</i><br /> <i>Authority, complaints filed by the allottees/homebuyers for refund of the</i><br /> <i>amount and interest under Section 31 of the Act came to be decided by the</i><br /> <i>Single Member of the Authority after hearing the parties in accordance with</i><br /> <i>the provisions of the Act.</i><br /> <i>111.</i> <i>Section 81 of the 2016 Act empowers the Authority, by general or</i><br /> <i>special order in writing, to delegate its powers to any member of the</i><br /> <i>Authority, subject to conditions as may be specified in the order, such of the</i><br /> <i>powers and functions under the Act. What has been excluded is the power to</i><br /> <i>make regulations under Section 85, rest of the powers exercised by the</i><br /> <i>Authority can always be delegated to any of its members obviously for</i><br /> <i>expeditious disposal of the applications/complaints including complaints filed</i><br /> <i>under Section 31 of the Act and exercise of such power by a general and</i><br /> <i>special order to its members is always permissible under the provisions of the</i><br /> <i>Act.</i><br /> Page 28 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>112.</i> <i>In the instant case, the Authority by a special order dated 5-12-2018</i><br /> <i>has delegated its power to the Single Member for disposal of complaints filed</i><br /> <i>under Section 31 of the Act. So far as refund of the amount with interest is</i><br /> <i>concerned, it may not be considered strictly to be mechanical in process but</i><br /> <i>the kind of inquiry which has to be undertaken by the Authority is of a</i><br /> <i>summary procedure based on the indisputable documentary evidence,</i><br /> <i>indicating the amount which the allottee/homebuyer had invested and interest</i><br /> <i>that has been prescribed by the competent authority leaving no discretion with</i><br /> <i>minimal nature of scrutiny of admitted material on record is needed, if has</i><br /> <i>been delegated by the Authority, to be exercised by the Single Member of the</i><br /> <i>Authority in exercise of its power under Section 81 of the Act, which explicitly</i><br /> <i>empowers the Authority to delegate under its wisdom that cannot be said to be</i><br /> <i>dehors the provisions of the Act.</i><br /> <i> </i> <i>113.</i> <i> </i> <i> What is being urged by the learned counsel for the appellants in</i> <i> </i> <i> </i><br /> <i>interpreting the scope of Section 29 of the Act is limited only to policy matters</i><br /> <i>and cannot be read in derogation to Section 81 of the Act and the</i><br /> <i>interpretation as argued by the learned counsel for the promoters if to be</i><br /> <i>accepted, the very mandate of Section 81 itself will become otiose and</i><br /> <i>nugatory.</i><br /> <i>114.</i> <i>It is a well-established principle of interpretation of law that the court</i><br /> <i>should read the section in literal sense and cannot rewrite it to suit its</i><br /> <i>convenience; nor does any canon of construction permit the court to read the</i><br /> <i>section in such a manner as to render it to some extent otiose. Section 81 of</i><br /> <i>the Act positively empowers the Authority to delegate such of its powers and</i><br /> <i>functions to any member by a general or a special order with an exception to</i><br /> <i>make regulations under Section 85 of the Act. As a consequence, except the</i><br /> <i>power to make regulations under Section 85 of the Act, other powers and</i><br /> <i>functions of the Authority, by a general or special order, if delegated to a</i><br /> Page 29 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> <i>Single Member of the Authority is indeed within the fold of Section 81 of the</i><br /> <i>Act.</i><br /> <i>115.</i> <i>The further submission made by the learned counsel for the promoters</i><br /> <i>that Section 81 of the Act empowers even delegation to any officer of the</i><br /> <i>Authority or any other person, it is true that the Authority, by general or</i><br /> <i>special order, can delegate any of its powers and functions to be exercised by</i><br /> <i>any member or officer of the Authority or any other person but we are not</i><br /> <i>examining the delegation of power to any third party. To be more specific, this</i><br /> <i>Court is examining the limited question as to whether the power under Section</i><br /> <i>81 of the Act can be delegated by the Authority to any of its member to decide</i><br /> <i>the complaint under Section 31 of the Act. What has been urged by the learned</i><br /> <i>counsel for the promoters is hypothetical which does not arise in the facts of</i><br /> <i>the case. If the delegation is made at any point of time which is in</i><br /> <i>contravention to the scheme of the Act or is not going to serve the purpose and</i><br /> <i>object with which power to delegate has been mandated under Section 81 of</i><br /> <i>the Act, it is always open for judicial review.</i><br /> <i>117.</i> <i>In the instant case, by exercising its power under Section 81 of the Act,</i><br /> <i>the Authority, by a special order dated 5-12-2018 has delegated its power to</i><br /> <i>the Single Member of the Authority to exercise and decide complaints under</i><br /> <i>Section 31 of the Act and that being permissible in law, cannot be said to be</i><br /> <i>dehors the mandate of the Act. At the same time, the power to be exercised by</i><br /> <i>the adjudicating officer who has been appointed by the Authority in</i><br /> <i>consultation with the appropriate Government under Section 71 of the Act,</i><br /> <i>such powers are non-delegable to any of its members or officers in exercise of</i><br /> <i>power under Section 81 of the Act.</i><br /> <i>[Emphasis Supplied]</i><br /> Page 30 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> 38. Therefore, when one takes a holistic view of the analysis in<br /> Newtech , it is very clear that not only was the Supreme Court examining<br /> an issue that is fundamentally different from the factual matrix at hand,<br /> but also the Supreme Court made it clear that it was not dealing with<br /> any aspect of whether delegation to the Adjudicating Officer was valid.<br /> On the contrary, the Supreme Court squarely held that if and when any<br /> delegation under Section 81 of the RERA Act is assailed as being<br /> contrary to the scheme of the RERA Act, such delegation would be open<br /> to judicial review.<br /> 39. Therefore, in my view, as indicated in Ravi Ranjan , extracted<br /> above, Newtech is not a precedent that would have a bearing on this<br /> factual matrix of this case. Indeed, neither should words, phrases and<br /> sentences in a judgement be read out of context nor should a judgement<br /> be read like one would read a statute. <br /> 40. Indeed, in Issue No. 2 in Newtech , the Supreme Court was<br /> not dealing with a question of delegation under Section 81 of the Act,<br /> but was dealing with whether under the very scheme of the RERA Act<br /> (without any element delegation of power under Section 81), it could be<br /> held that the Adjudicating Officer had exclusive jurisdiction to grant<br /> refund. The Supreme Court answered in the negative. In Issue No. 3,<br /> Page 31 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> the Supreme Court considered the question of delegation and squarely<br /> answered that delegation of any power or function of RERA to any<br /> officer of RERA was feasible under Section 81 save and except for the<br /> power to make subordinate legislation.<br /> 41. There is one other facet of Newtech that stands out, and that<br /> too to indicate what the power to adjudicate compensation entails, and<br /> what the power to direct refund does not entail. The Supreme Court<br /> analysed the scheme of the RERA Act to find that the exercise of power<br /> to adjudicate compensation necessitated conducting of a trial while in<br /> sharp contrast, the exercise of power to direct a refund, although strictly<br /> not mechanical, the kind of inquiry to be undertaken was summary in<br /> nature based on indisputable documentary evidence with minimal<br /> scrutiny and no discretion in dealing with admitted material on record.<br /> 42. Therefore, what an Adjudicating Officer alone is empowered<br /> by law to do, with a careful choice of who can be an Adjudicating Officer<br /> (a judicial officer), other officers of RERA (who are not judicially<br /> trained) cannot be expected to do. On the other hand, a judicially<br /> trained Adjudicating Officer <i>,</i> in whose domain a quasi-judicial<br /> adjudication would lie, would be able to undertake the lesser task of<br /> conducting a summary procedure to decide a refund. Therefore,<br /> Page 32 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> delegation of the exercise of refund power to the Adjudicating Officer is<br /> not contrary to the scheme of the Act. It is the extrapolation of Section<br /> 71 “ as prayed ” that was commented upon by the Supreme Court, making<br /> it clear that any other manner of delegation can always be judicially<br /> reviewed when such a delegation is made.<br /> 43. Marvel is indeed conscious that the Supreme Court was<br /> dealing with a contention that the WTM could never exercise the power<br /> to direct a refund and that it was not dealing with a contention (such as<br /> the matter in hand) that the Adjudicating Officer could never be<br /> delegated with the power to direct a refund. Conscious that a judgement<br /> is a precedent for what it decides, Marvel contends that obiter dicta of<br /> the Supreme Court is binding on the High Court. For the reasons set<br /> out above, in my opinion, even the obiter dicta in Newtech is not the<br /> nature as sought to be canvassed by Marvel.<br /> Case against Exercise of Discretion for a Writ:<br /> 44. I have set out above why in my view Newtech does not<br /> constitute a reasonable basis for interference that the Impugned Order<br /> was a product of coram non judice and that it needs to be quashed at<br /> this distance of time, and that the Recovery Order to enforce the<br /> Page 33 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> Impugned Order deserves to be set aside. However, faced with an<br /> expression of the aforesaid prima facie view, Marvel would at a later<br /> date of hearing, point to Marveledge , where a Learned Division Bench of<br /> this Court had exercised discretion to quash a recovery order accepting<br /> the reading of the extract from Newtech as canvassed in the captioned<br /> Writ Petition. <br /> 45. The second issue of delegation under Section 81 of the RERA<br /> Act dealt with in Newtech , does not seem to have been presented to the<br /> Learned Division Bench and there is no ruling on that facet of the<br /> matter. Be that as it may, judicial discipline would necessitate having to<br /> respectfully follow the approach of the Learned Division Bench, the only<br /> scope that remains is limited to any distinguishing features in the<br /> matter in hand. <br /> 46. In this light, purely from the perspective of whether<br /> discretion ought to be exercised in the captioned Writ Petition, it is clear<br /> to me that the instant case stands on a completely distinguishable and<br /> different footing. <i> </i> It is indeed the duty of the writ court to see if the facts<br /> of the matter in hand would warrant exercise of discretion in the same<br /> manner in the particular facts of the instant case <i>.</i> <br /> Page 34 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> 47. In that light, it is noteworthy that the Impugned Order had<br /> been passed in December 2019, seven years ago. The Recovery Order<br /> was passed in October 2021, five years ago. The Supreme Court<br /> judgement in Newtech was rendered in November 2021. Marvel had a<br /> statutory right to appeal against the Impugned Order, which it did not<br /> avail of. This resulted in the Impugned Order attaining finality and<br /> there was nothing in the then state of the law to cast any cloud over the<br /> Impugned Order. When Marvel participated in the enforcement<br /> proceedings that led to the Recovery Order, the judgement in Newtech<br /> had not been rendered. However, Marvel did not even table the issue –<br /> evidently there was no issue to table because even if Marvel is assumed<br /> to have known about the issues framed in Newtech , the issue was not at<br /> all aligned with the issue involved in the facts of the instant case.<br /> 48. Even after the judgement was rendered in Newtech , Marvel<br /> did not file any writ petition seeking to rely on Newtech until nearly<br /> three years later, in 2024. Even if one can raise the facet of jurisdiction<br /> at any stage it is well settled that closed and concluded matters cannot<br /> be reopened on the premise that a subsequent judgement of a superior<br /> court has declared the law differently. Once there is a statutory period<br /> for an appeal and that period has expired, the order has attained<br /> finality. If a subsequent declaration of the law (as perceived by Marvel to<br /> Page 35 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> give it some basis to reopen the issue) is made, it would not follow that<br /> long-closed matters can be reopened. In this light, I am not inclined to<br /> exercise discretion to interfere with the finally closed Impugned Order<br /> as a matter of exercise of discretion in the extraordinary writ<br /> jurisdiction of this Court. <br /> 49. Marvel would contend that the jurisdictional issue cuts to the<br /> root of the matter and it can be raised even in execution. This<br /> contention can always be raised in the enforcement proceedings before<br /> the authorities who conduct the execution. I am not inclined to exercise<br /> the discretion available in jurisdiction of the writ court to make an<br /> intervention and reopen a matter that had already attained finality way<br /> before Marvel started perceiving the rights purportedly flowing to it<br /> from Newtech . The earlier decisions are distinguishable because they<br /> only examined whether Section 71 of the RERA Act created a divide in<br /> the jurisdiction of the Adjudicating Officer “ as prayed ” by the appellants<br /> in Newtech, and did not examine the effect of Section 81 of the Act.<br /> 50. That apart, WP 2271 was filed by the Flat Purchaser and<br /> another Learned Division Bench is seized of the matter. The captioned<br /> Writ Petition was filed subsequently and is fomenting and creating<br /> multiplicity of litigation to attempt to reopen a matter that had attained<br /> Page 36 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> finality seven years ago (as of now) and five years ago (as of the time this<br /> Writ Petition was filed). It is also noteworthy that admittedly,<br /> Marveledge is an affiliate or sister concern of Marvel, it is apparent that<br /> Marvel has simply attempted to take a chance with this Writ Petition.<br /> 51. This is why Mr. Kothari’s reliance on UP Jal Nigam and<br /> Bhailal Bhai resonates with me in the decision not to exercise discretion<br /> in favour of the intervention sought by Marvel in this Writ Petition. The<br /> law does not protect the indolent and indeed the stratagem of following<br /> suit after Marveledge to reopen even older cases does not appeal to me<br /> to issue a writ as sought by Marvel.<br /> 52. Purely for completeness, it must be stated that Mr. Kothari’s<br /> contention about the “Ganga Clause” has no application to this case.<br /> That provision relates to defect in constitution of the relevant bench and<br /> is not relevant for purposes of considering the contention of inherent<br /> lack of jurisdiction raised by Marvel, based on the observation in<br /> Newtech .<br /> Conclusion:<br /> 53. Therefore, to summarise, considering: (i) that the Impugned<br /> Order had attained finality in 2019; (ii) that the captioned Writ Petition<br /> Page 37 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b><br /><br /> <i> </i> 901-F-J-WP-12121-2024.doc<br /> <br /> <i> </i><br /> was filed nearly three years after Newtech was delivered; (iii) that the<br /> petition in Marveledge was filed close to the ruling in Newtech ; (iv) that<br /> the analysis of the scheme of the RERA Act read with the interpretation<br /> in Newtech as set out above, does not point to an inexorable binding<br /> ratio or obiter having come into existence; (v) that Marveledge is<br /> distinguishable as explained above; (vi) that there is an inordinate and<br /> unexplained delay in filing the captioned Writ Petition; (vii) that<br /> another Learned Division Bench is seized of WP 2271 and this issue can<br /> indeed be gone into in those proceedings that had been initiated by the<br /> Flat Purchaser prior in time; (viii) and that the writ court must<br /> necessarily apply its mind to the matter of whether to exercise discretion<br /> in favour of issuance of writ, I am not inclined to use the discretionary<br /> writ jurisdiction in favour of Marvel to interfere with the Impugned<br /> Order or the Recovery Order. <br /> 54. The Writ Petition is therefore dismissed without any<br /> intervention. No costs.<br /> 55. All actions required to be taken pursuant to this order shall<br /> be taken upon receipt of a downloaded copy as available on this Court’s<br /> website.<br /> [SOMASEKHAR SUNDARESAN, J.]<br /> Page 38 of 38<br /> April 7, 2026<br /> <i>Ashwini Vallakati</i><br /> <b><i>::: Uploaded on - 07/04/2026</i></b> <b><i>::: Downloaded on - 07/04/2026 16:46:37 :::</i></b></div>