Real Estate Appellate Authority Can’t Initiate Suo Moto Proceedings

Case: Praveen Chhabra V. Real Estate Appellate Tribunal

Coram: Justice Yashwant Varma

Case No.: W.P.(C) 14552/2021

Court Observation: “Regard must also be had to the fact that the Appellate Tribunal is not part of the hierarchy of traditional judicial institutions which constitute the judicial system of our country. It is an appellate forum whose origin and formation stems from the provisions of the Act. It is in that sense an adjudicatory authority which owes its existence and authority to a special statute,”

“Viewed in that light it is manifest that it can neither assume nor arrogate to itself a power or authority which may otherwise not stand conferred on it by the Act. There is thus an evident and blatant assumption of jurisdiction which otherwise does not stand vested upon the Appellate Tribunal. The Court thus comes to the firm conclusion that the impugned proceedings are clearly ultra vires the Act.”

“The aforesaid injunction is not shown to have been preceded by any enquiry with respect to the validity of a particular project or even a prima facie assessment or evaluation of the validity of a single project. In fact, the order does not even take note of a proven or evident violation of the provisions of the Act by a particular project. This Court is constrained to observe the procedure as adopted by the Appellate Tribunal can neither be countenanced nor accorded an imprimatur,”

“This judgment shall however not be construed as restraining the Authority from independently examining the validity of individual projects and enforcing the provisions of the Act in accordance with law,”

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Keywords

Real Estate Appellate Authority, Suo Moto Proceedings