Maintainability Of Home Buyers' Complaint Before Consumer Fora After Enactment Of RERA: Delhi HC To Decide [Read Order]

The Delhi High Court will consider the maintainability of complaints filed by Home Buyers before the Consumer Forums after enactment of the Real Estate (Regulation and Development) Act, 2016.

Before the National Consumer Disputes Redressal Commission, Today Homes & Infrastructure Pvt Ltd., objected to maintainability of complaints filed by some home buyers contending that section 79 of RERA bars the jurisdiction of Courts to entertain any complaint since after the Act has came into force, on 01.05.2017.

Since the impugned complaints were filed in April, 2018 and June 2018 hence per Section 79 it ought to have been filed before the authority under the RERA as for fresh complaints filed after the commencement of the Act, the NCDRC or other consumer fora shall have no jurisdiction to entertain the same, it was argued.

However, the Commission took note of an earlier passed by it regarding the same issue. In the said order, the Commission had held that RERA does not expressly or impliedly bar any person from invoking the provisions of the Consumer Protection Act. Challenging this order, a petition was filed by the builder before the Delhi High Court and the same is pending consideration.

The Commission had made following observations.

• The Consumer Protection Act, 1986 is a supplement Act and not in derogation of any other Act;

• The Consumer Fora constituted under the Consumer Protection Act, 1986 are not Civil Courts.

• A Consumer cannot pursue two remedies for the same cause of action. However, if a Consumer has not approached for redressel of its grievance under the particular Statute, the Consumer can approach the Consumer Fora under the Consumer Protection Act. But, if the Consumer had already approached the Authority under the relevant Statute, he cannot simultaneously file any complaint under the Consumer Protection Act.

• Mere availability of a right to redress the grievance in a particular Statute will not debar the Complainant/Consumer from approaching the Consumer Fora under the Act

• Even though under Sections 14, 15, 18 and 19 of RERA, various provisions have been made which are to be followed by the Developer/Promoters and the rights and duties and the return of amount as compensation as also rights and duties of Allottees, yet same cannot mean to limit the right of the Allottee only to approach the Authorities constituted under the RERA, he can still approach the Consumer Fora under the Consumer Protection Act.

• Section 71 of RERA which gives the power to adjudicate, does not expressly or impliedly bar any person from invoking the provisions of the Consumer Protection Act. It has also given a liberty to the person whose Complaint is pending before the Consumer Fora to withdraw it and file before the RERA Authorities. 

Last April, the NCDRC had held that RERA will not bar homebuyers' complaint under the Consumer Protection Act.

"Both, the Consumer Protection Act, 1986 and the Real Estate (Regulation and Development) Act, 2016 are supplemental to each other and there is no provision in the Consumer Protection Act which is inconsistent with the provisions of RERA", the NCDRC bench headed by Chairperson Justice R K Agarwal held.

Read Order