Facts
On December 17, 2019, the Adjudicating Officer ("AO") of the Real Estate Regulatory Authority ("RERA") ordered the Petitioner to refund Rs. 1,35,99,246 with interest to a flat purchaser
Source reference: para 3AThe Petitioner failed to challenge this order under Section 44 of the RERA Act, 2016, allowing it to attain finality
Source reference: para 3BConsequently, a recovery warrant was issued on October 8, 2021
Source reference: para 3COn November 11, 2021, the Supreme Court delivered the judgment in Newtech Promoters and Developers Pvt. Ltd. v. State of UP, which the Petitioner argued rendered the AO’s refund order non est for lack of jurisdiction
Source reference: para 3D-3EThe Petitioner approached the High Court in August 2024, seeking to quash the 2019 and 2021 orders based on the law declared in Newtech
Source reference: para 11Issues
1. Whether an order passed by an Adjudicating Officer for refund of investment is rendered non est by the subsequent law declared by the Supreme Court in Newtech
Source reference: para 2, 42. Whether the High Court should exercise its discretionary jurisdiction under Article 226 to reopen matters that have attained finality due to a subsequent change in legal interpretation
Source reference: para 4, 11Law Applied
Section 18 establishes the substantive right to a refund and compensation
Source reference: para 21Section 71 provides for the appointment of an Adjudicating Officer specifically for adjudging compensation
Source reference: para 24Section 81 allows the Authority to delegate any of its powers (except rule-making) to any member or officer
Source reference: para 25The court relied on Newtech Promoters and Developers Pvt. Ltd. v. State of UP, which clarified that while Regulatory Authorities can order refunds, AOs exclusively adjudge compensation
Source reference: para 30The court applied principles from U.P. Jal Nigam v. Jaswant Singh regarding delay and laches
Source reference: para 15The court applied principles from Assistant Commissioner, Income Tax, Rajkot v. Saurashtra Kutch Stock Exchange Ltd., which holds that retrospective judicial decisions do not disturb res judicata or settled accounts
Source reference: para 14Reasoning
The Court distinguished the Petitioner's interpretation of Newtech, noting that the Supreme Court in that case was determining if a Whole Time Member (WTM) had the power to order refunds, not whether an AO was strictly prohibited from doing so if delegated
Source reference: para 33, 40The Court observed that under Section 81 of the RERA Act, RERA may delegate any executive or quasi-judicial function (excluding compensation adjudication, which is statutory to the AO) to its officers
Source reference: para 35Since an AO is a judicially trained officer of RERA, delegating the "lesser task" of a summary refund inquiry to them is not inherently contrary to the Act’s scheme
Source reference: para 41-42Regarding the Petitioner’s delay, the Court held that since the 2019 order attained finality and the Petitioner waited nearly three years after Newtech to file the writ, the matter was closed and concluded
Source reference: para 48The Court emphasized that the extraordinary jurisdiction of Article 226 is discretionary and should not be used to protect "indolent" litigants or reopen settled rights based on later shifts in law
Source reference: para 16, 51Holding
The Court dismissed the Writ Petition, refusing to interfere with the Impugned Order or the Recovery Order
It held that Newtech does not provide an automatic ground to nullify long-settled orders
Source reference: para 49The Court concluded that the inordinate delay of five years since the original order and three years since the Newtech judgment precluded the exercise of discretionary relief
Source reference: para 53Original Court PDF
MARVEL LANDMARKS PVT. LTD.vsTHE STATE OF MAHARASHTRA AND ORS
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