Category: Allahabad High Court

  • Allahabad HC: RERA Appellate Order Without Technical or Administrative Member Is Null and Void

    Allahabad HC: RERA Appellate Order Without Technical or Administrative Member Is Null and Void

    Date: 05.10.2026

    The Allahabad High Court has delivered an important ruling concerning the mandatory composition of Benches of the Real Estate Appellate Tribunal under the Real Estate (Regulation and Development) Act, 2016 (β€œRERA Act”). The Court held that an appellate order passed by a Bench not constituted in accordance with Section 43(3) is without jurisdiction, null and void, and the defect cannot be cured by invoking Section 55 of the Act.

    The ruling came in a batch of appeals filed by Shashank Gupta against M/s Vatika Nirman Private Limited, arising from orders of the RERA Appellate Tribunal.

    Three Questions Before the High Court

    • While admitting the appeals, the High Court had framed three substantial questions of law. These concerned whether the Tribunal was justified in treating the underlying complaint as premature while also deciding the issue of cancellation; whether the Tribunal’s judgment was coram non judice in light of Sections 43(3) and 45 of the RERA Act; and whether findings concerning consideration and breach of the allotment terms could stand without supporting material.
    • The Court decided to first address the second and foundational questionβ€”whether the RERA Appellate Tribunal Bench itself had been legally constituted.

    The Controversy Over Composition of the RERA Appellate Tribunal

    • The controversy arose after the Technical Member demitted office on 26 September 2023. The Tribunal recorded that its functioning had effectively come to a standstill from 27 September 2023. Subsequently, a Judicial Member was appointed, and judicial functioning was resumed with the Chairman and a Judicial Member despite the absence of a Technical Member.
    • The impugned appellate judgment dated 14 May 2024 related to multiple appeals before the RERA Appellate Tribunal.
    • This raised a fundamental jurisdictional question: Can a RERA Appellate Tribunal Bench validly exercise judicial functions without the Administrative or Technical Member expressly contemplated by Section 43(3)?

    Section 43(3): Mandatory Composition of Every Bench

    The High Court examined the statutory architecture of the RERA Act, particularly Sections 43, 45 and 55.

    Section 43(3) expressly provides that:

    • β€œEvery bench of the Appellate Tribunal shall consist of at least one Judicial Member and one Administrative or Technical Member.”
    • The Court noted that Section 45 separately provides for the constitution of the Appellate Tribunal consisting of a Chairperson and not less than two whole-time Members, including a Judicial Member and a Technical or Administrative Member.
    • The High Court found an important statutory distinction between the β€œAppellate Tribunal” as an institution and the β€œBench” constituted to hear and decide appeals.
    • According to the Court, the deliberate use of the word β€œBench” in Section 43(3) makes the prescribed composition a substantive requirement for the exercise of appellate jurisdiction.

    Can Section 55 Cure the Absence of a Technical Member?

    • A central issue was the effect of Section 55 of the RERA Act, which provides that an act or proceeding of the Appellate Tribunal shall not be invalid merely because of a vacancy or defect in its constitution, a defect in appointment, or a procedural irregularity not affecting the merits.
    • The High Court rejected the proposition that Section 55 could be used to overcome non-compliance with Section 43(3).
    • Justice Pankaj Bhatia held that Section 55(c), which protects proceedings from certain procedural irregularities, cannot cure an irregularity in the constitution of the Bench itself.
    • This distinction became decisive. A vacancy or procedural defect that Section 55 protects is fundamentally different from a Bench exercising jurisdiction without satisfying the mandatory minimum composition prescribed by Parliament.

    Punjab & Haryana High Court Precedent Relied Upon

    • The Allahabad High Court found support for its interpretation in a Division Bench judgment of the Punjab & Haryana High Court reported as 2020 SCC OnLine P&H 2030. That judgment had considered whether a RERA Appellate Tribunal could exercise judicial functions through a Single Member Bench.
    • The Punjab & Haryana High Court had held that Sections 43(3) and 45, when read harmoniously, mandate at least two Membersβ€”one Judicial Member and one Administrative or Technical Member. Consequently, an order passed by a Single Member Bench would be null and void.
    • The judgment also referred to similar views expressed by the Bombay High Court in Man Global Pvt. Ltd. v. Bharat Prakash Joukani and Larsen and Toubro Limited v. Ms. Rekha Sinha.
    • The Punjab & Haryana High Court precedent had further relied upon the Supreme Court’s decision in Gulzari Lal Agarwal v. The Accounts Officer, (1996) 10 SCC 590, concerning harmonious statutory interpretation without doing violence to the plain language of the legislation.

    Interim Division Bench Order Could Not Retrospectively Cure Jurisdiction

    • The Allahabad High Court also considered an earlier Division Bench order dated 16 May 2024, passed after suo motu cognizance was taken regarding the functioning of the U.P. Real Estate Appellate Tribunal.
    • That interim order had directed resumption of the Tribunal’s functioning in view of Section 55 while leaving the final interpretation of the provision open.
    • Crucially, however, the judgment under challenge in the present appeals had been passed before 16 May 2024.
    • The High Court therefore observed that even assuming jurisdiction could be attributed to the Tribunal because of the subsequent interim Division Bench order, it could not cure the absence of jurisdiction at the time the impugned order was passed.

    Allahabad HC: Defect Goes to the Root of Jurisdiction

    • On a conjoint reading of Sections 43(3), 45 and 55, the High Court reached a categorical conclusion.
    • It held that an order passed by an Appellate Tribunal Bench not constituted in accordance with Section 43(3) is null and void, and such jurisdictional defect cannot be saved by Section 55.
    • The Court consequently answered the second substantial question of law in favour of the appellant and held that the impugned order was without jurisdiction and null and void. Having decided the jurisdictional issue, the Court considered it unnecessary to adjudicate the remaining two questions.

    Matter Remanded for Fresh Decision Within 60 Days

    • By the time the High Court decided the appeals, it was informed that a Technical Member had been appointed and that the Appellate Tribunal was functioning in accordance with the statutory mandate.
    • The High Court therefore remanded the matter to the RERA Appellate Tribunal for fresh adjudication. It directed the Tribunal to decide the matter expeditiously, without granting unnecessary adjournments, preferably within 60 days. The Tribunal was also directed to consider the matter afresh, particularly the date of allotment, which the High Court noted had not previously been considered.

    Why the Judgment Is Significant

    • The ruling draws an important line between a curable vacancy or procedural irregularity and a fundamental defect in the constitution of the adjudicatory Bench.
    • Section 55 cannot be treated as a blanket validation provision permitting the Tribunal to disregard the minimum composition expressly mandated by Section 43(3). Where Parliament requires every Bench to comprise at least one Judicial Member and one Administrative or Technical Member, failure to satisfy that requirement goes to the jurisdiction of the Bench itself.
    • The judgment therefore has wider implications for RERA appellate proceedings decided during periods when the statutory composition of a Tribunal Bench was incomplete.
    • At the same time, the judgment should not be read as deciding the underlying merits of the dispute between the allottee and the developer. The High Court expressly refrained from deciding the other two substantive questions after finding the appellate order jurisdictionally invalid. The merits will now have to be considered afresh by a properly constituted Appellate Tribunal.

    Key Takeaway

    A RERA Appellate Tribunal Bench must comply with the composition mandated by Section 43(3) of the RERA Act. The absence of the required Administrative or Technical Member is not merely a procedural irregularity capable of being cured by Section 55; an order passed by an improperly constituted Bench is without jurisdiction and null and void.

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  • RERA Appellate Order Passed Without Administrative Member Set Aside by Allahabad HC

    RERA Appellate Order Passed Without Administrative Member Set Aside by Allahabad HC

    Date: 03.10.2026

    In an important ruling concerning the constitution and jurisdiction of the Real Estate Appellate Tribunal under the Real Estate (Regulation and Development) Act, 2016 (RERA), the Allahabad High Court at Lucknow has set aside an appellate judgment after finding that the order had not been passed by a Bench constituted in the manner prescribed under the Act.

    Justice Pankaj Bhatia ruled in favour of Sudha Realtors Pvt. Ltd. on the jurisdictional issue arising from the absence of an Administrative Member from the Bench and remanded the matter to the appellate authority for a fresh decision.

    The High Court relied upon its earlier decision in Shashank Gupta v. M/s Vatika Nirman Private Limited, 2025:AHC-LKO:48238, which had dealt with the issue of forum composition in the absence of an Administrative Member.

    Delay in Filing RERA Appeal Condoned

    • Before dealing with the substantive controversy, the High Court considered C.M. Application No. 1 of 2024 seeking condonation of delay in filing the appeal.
    • The Court found the cause shown to be sufficient, allowed the application and condoned the delay.
    • The Court thereafter proceeded to examine the challenge to the appellate judgment dated 1 April 2024.

    Dispute Over Section 43(5) Pre-Deposit

    • The impugned judgment had recorded that there was non-compliance with Section 43(5) of the RERA Act, which contains the statutory pre-deposit requirement applicable to an appeal by a promoter.
    • Against this background, the High Court framed substantial questions of law concerning both the constitution of the Appellate Tribunal Bench and the consequences of non-compliance with the statutory pre-deposit requirement.

    The second question framed by the Court was particularly significant:

    • Whether an appeal could be dismissed for non-compliance with Section 43(5), instead of first giving the appellant an opportunity to make the required deposit.
    • However, the ultimate disposal turned on the first, jurisdictional issue concerning the composition of the Tribunal Bench.

    Can a Chairman and Judicial Member Alone Constitute the RERA Appellate Bench?

    • The first substantial question of law framed by the High Court was whether a judgment delivered by a forum comprising only a Chairman and Judicial Member could be treated as having been delivered by a validly constituted Bench under Section 43 of the RERA Act.
    • This went to the very jurisdiction of the forum that had passed the impugned appellate judgment.
    • The High Court found that the question concerning the absence of an Administrative Member had already been considered in Shashank Gupta v. M/s Vatika Nirman Private Limited.
    • Applying that ruling, the Court concluded that the impugned order had not been passed by a Bench constituted as prescribed under Section 43(3) and was therefore without jurisdiction.

    Absence of Administrative Member Makes Jurisdictional Difference

    • The significance of the ruling lies in the distinction between an irregularity in procedure and a defect going to the jurisdiction of the adjudicatory forum itself.
    • The High Court treated the absence of an Administrative Member as affecting the lawful constitution of the Bench under Section 43(3). Consequently, the appellate judgment could not be sustained merely because the matter had otherwise been adjudicated by the Chairman and Judicial Member.
    • The jurisdictional issue was expressly decided in favour of Sudha Realtors Pvt. Ltd.

    Earlier Writ Against Execution Proceedings

    • During the proceedings, counsel for the respondents pointed out that the appellant had earlier approached the High Court by filing Writ-C No. 7828 of 2025 against execution proceedings.
    • That writ petition had been dismissed, while leaving it open to the petitioner to approach the appropriate forum.
    • The earlier writ proceedings, however, did not prevent the High Court from examining the jurisdictional validity of the RERA appellate order in the present statutory appeal.

    Appellate Judgment Set Aside and Matter Remanded

    • Having found that the impugned decision had not been rendered by a Bench constituted as contemplated under Section 43(3), the High Court set aside the appellate judgment dated 1 April 2024.
    • The matter was then remanded to the appellate authority for fresh adjudication.
    • Thus, the High Court did not finally determine the underlying merits of the real estate dispute between Sudha Realtors and the respondents. Instead, the earlier appellate adjudication was undone because of the jurisdictional defect, and the dispute was sent back for a fresh decision by the competent appellate forum.

    Opportunity to Seek Interim Relief

    • The High Court further clarified that it would be open to the appellant to approach the Appellate Tribunal, where the amount had been deposited and the matter had earlier been adjudicated.
    • Sudha Realtors was also permitted to move an application seeking interim relief.
    • Significantly, the High Court directed that if such an interim relief application was filed, it should be considered expeditiously, preferably within two weeks from the date of filing.

    What About the Section 43(5) Pre-Deposit Question?

    • The High Court had specifically framed the question whether an appeal could be dismissed for failure to comply with the Section 43(5) pre-deposit requirement without first giving the appellant an opportunity to make the deposit.
    • However, the order ultimately disposed of the matter on the Bench-composition/jurisdiction issue by applying Shashank Gupta. The uploaded order does not contain a separate substantive determination of the second question concerning whether an opportunity to deposit must invariably be granted before dismissal.
    • Accordingly, the judgment should not be read as laying down a final proposition that every RERA appeal deficient in Section 43(5) pre-deposit must necessarily be granted additional time. The operative relief flowed from the invalid constitution of the appellate Bench.

    Key Legal Significance

    • The decision has important implications for proceedings before RERA Appellate Tribunals.
    • Where the statute prescribes the composition of an adjudicatory Bench, compliance with that requirement can go to the very jurisdiction of the forum. An appellate decision rendered by a Bench that does not satisfy the statutory composition requirement may therefore be vulnerable to challenge irrespective of the merits of the underlying dispute.
    • The ruling also demonstrates that a party challenging an adverse RERA appellate order may raise a jurisdictional objection regarding Bench composition, distinct from questions concerning the correctness of the decision on merits or compliance with Section 43(5).
    • At the same time, the order is procedurally limited: Sudha Realtors did not obtain a final determination of the underlying RERA dispute in its favour. It succeeded in having the earlier appellate judgment set aside, with the matter remanded for fresh consideration.

    Case Referred

    The principal precedent expressly relied upon by the High Court was:

    • Shashank Gupta v. M/s Vatika Nirman Private Limited, 2025:AHC-LKO:48238 β€” relied upon on the issue of the constitution of the RERA appellate forum in the absence of an Administrative Member.

    Conclusion

    The Allahabad High Court’s decision underscores that statutory requirements governing the constitution of a RERA Appellate Tribunal are not merely procedural formalities.

    Where an appellate order is passed by a Bench not constituted in the manner prescribed under Section 43(3), the resulting decision may be treated as being without jurisdiction.

    In the present case, that defect resulted in the 1 April 2024 appellate judgment being set aside and the matter being remanded for fresh adjudication, while preserving Sudha Realtors’ right to seek interim relief before the appellate forum.

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  • Allahabad High Court: RERA Recovery Proceedings Cannot Be Challenged Directly Through Writ When Statutory Appeal Is Available

    Allahabad High Court: RERA Recovery Proceedings Cannot Be Challenged Directly Through Writ When Statutory Appeal Is Available

    Date: 12.09.2026

    In an important ruling concerning the remedies available against orders and recovery proceedings initiated under the Real Estate (Regulation and Development) Act, 2016 (RERA), the Allahabad High Court has declined to interfere with a recovery certificate challenged directly under Article 226 of the Constitution. The Court held that the petitioners could approach the competent Appellate Tribunal under Section 43(5) of the RERA Act against the underlying order on which the recovery proceedings were founded.

    Background of the Case

    • The writ petition was filed by M/s Singh Brothers, Kanpur Nagar, through its partner Amarpreet Singh and seven others against U.P. RERA and other respondents. The petitioners sought quashing of a recovery certificate dated 25 November 2023 issued by U.P. RERA to the District Magistrate, Kanpur Nagar. They also sought a direction restraining the authorities from taking coercive action pursuant to the recovery certificate.
    • According to the petitioners, they were owners and in legal possession of land situated at Govind Nagar, Kanpur. A builder agreement had been entered into on 30 July 2008 with M/s College Group Infrastructure Private Limited for development of the land, and a General Power of Attorney was also executed in favour of the builder for implementation of the agreement.

    Petitioners Claimed They Were Not Co-Promoters

    • The builder subsequently launched a project known as β€œViva City Square” in Kanpur and registered itself on the U.P. RERA portal. Significantly, the petitioners contended that they were never registered as co-promoters of the project.
    • Certain allottees subsequently filed a complaint before U.P. RERA regarding the conduct of the builder. After adjudication of the complaint, a recovery certificate was issued. The petitioners’ grievance was that the recovery certificate was being sought to be enforced against them even though, according to them, they were neither registered as co-promoters nor proprietors of the project.
    • They further contended that the original RERA complaintβ€”Complaint No. LKO157/07/55720/2020, Lalit Kumar Singh v. M/s College Group Infrastructure Private Limitedβ€”was not filed against them and that they had not been heard when U.P. RERA passed its order dated 1 April 2021.

    Earlier High Court Direction for Execution of Recovery Certificate

    • U.P. RERA brought to the Court’s attention an earlier order dated 18 March 2024 passed by a coordinate Bench in Lalit Kumar Singh v. State of U.P. & Others, Writ-C No. 2557 of 2024.
    • In that proceeding, the High Court had directed the District Magistrate, Kanpur, to execute the recovery certificate dated 25 November 2023 within three months from the date on which a certified copy of the order was furnished.
    • RERA therefore argued that the authorities were merely acting in compliance with the earlier direction of the High Court and that the petitioners could have sought review of that order before the concerned Division Bench.

    Alternative Remedy Under RERA

    • To overcome the objection regarding availability of an alternative statutory remedy, the petitioners relied upon the Supreme Court’s decision in Assistant Commissioner of State Tax & Others v. Commercial Steel Limited, Civil Appeal No. 5121 of 2021, decided on 3 September 2021.
    • The petitioners argued that existence of an alternative remedy does not automatically bar the High Court from exercising its writ jurisdiction under Article 226.

    The High Court examined the Supreme Court judgment and noted that an alternative remedy is indeed not an absolute bar to maintainability of a writ petition. However, interference despite availability of a statutory remedy is ordinarily justified in exceptional situations such as:

    • breach of fundamental rights;
    • violation of principles of natural justice;
    • excess of jurisdiction; or
    • challenge to the vires of a statute or delegated legislation.

    The Division Bench, however, concluded that the petitioners’ case did not fall within any of those recognised exceptional circumstances.

    High Court Directs Petitioners Towards RERA Appellate Remedy

    • The Court took note of the petitioners’ contention that they were not named as proprietors, were not parties to the original complaint and had not been heard when U.P. RERA passed the underlying order dated 1 April 2021.
    • Nevertheless, instead of adjudicating these issues in the writ proceedings, the High Court held that if the petitioners were aggrieved by the order dated 1 April 2021, which formed the basis of the subsequent recovery certificate, they could approach the Appellate Tribunal under Section 43(5) of the RERA Act.
    • The writ petition was accordingly disposed of with the above observations.

    Key Legal Takeaway

    The ruling reiterates the principle that the constitutional jurisdiction of the High Court under Article 226 is wide, and availability of an alternative remedy is not an absolute prohibition against entertaining a writ petition. However, where an effective statutory appellate mechanism exists and the case does not fall within one of the recognised exceptional categories, the High Court may decline to exercise writ jurisdiction.

    The judgment is particularly relevant in the RERA context because a person who claims to have been wrongly affected by an underlying RERA order cannot ordinarily bypass the statutory appellate mechanism merely by challenging the consequential recovery certificate through a writ petition. The appropriate course, as indicated by the Court in this case, is to challenge the foundational RERA order before the competent Appellate Tribunal under Section 43(5).

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  • Allahabad HC: RERA Application Pending Beyond 30 Days Results in Deemed Registration; UPRERA Cannot Insist on Landowner as Co-Promoter

    Allahabad HC: RERA Application Pending Beyond 30 Days Results in Deemed Registration; UPRERA Cannot Insist on Landowner as Co-Promoter

    Date: 11.09.2026

    In a significant ruling concerning the Real Estate (Regulation and Development) Act, 2016 (RERA), the Allahabad High Court has held that where the Real Estate Regulatory Authority neither grants nor rejects a complete project-registration application within the statutory period of 30 days, the project becomes deemed to be registered under Section 5(2) of the RERA Act.

    A Division Bench comprising Justice Mahesh Chandra Tripathi and Justice Prashant Kumar delivered the judgment in a writ petition filed by Larsen & Toubro Limited (L&T) against the State of Uttar Pradesh and U.P. RERA.

    Dispute Over Registration of L&T’s β€œGreen Reserve” Project

    • The dispute concerned L&T’s proposed β€œGreen Reserve” residential project comprising four towers in Jaypee Greens Wish Town, Noida. L&T had acquired development rights pursuant to an Assignment Agreement dated 31 July 2017 executed with Jaypee Infratech Limited (JIL)/Jaiprakash Associates Limited (JAL). The judgment records that β‚Ή487.5 crore was paid in connection with the Assignment Agreement.
    • L&T applied to UPRERA for registration of Towers 1 and 2 and subsequently Towers 3 and 4. UPRERA, however, repeatedly required L&T to include JIL as a β€œpromoter”, principally because the project land and sanctioned map were not in L&T’s ownership.
    • L&T maintained that the development, construction, marketing and sale rights had been assigned to it and that JIL was not required to be made a co-promoter.

    Landowner Need Not Necessarily Be a β€œPromoter”

    • One of the most important questions before the High Court was whether the landowner must necessarily be joined as a co-promoter for registration under RERA.
    • The Court examined the definition of β€œpromoter” under Section 2(zk) and held that a person who does not own the land but constructs/develops the project for sale can independently fall within the statutory definition of promoter.
    • The Court observed that the person who constructs and sells can be the promoter even when construction is undertaken on land belonging to another person, provided there is a valid arrangement between the owner and developer. It consequently held that JIL did not fall within the category of promoter for this particular project.
    • Accordingly, UPRERA’s insistence that JIL/JAL must sign the registration application as co-promoter was held to be unsupported by the Act.

    UPRERA Cannot Demand Documents Beyond Section 4(2)

    • The High Court also found that L&T’s application was complete and accompanied by the documents contemplated under Section 4(2) of the RERA Act.
    • The Court held that once an application is in the prescribed format and contains the documents statutorily required, UPRERA cannot engage in a β€œhair-splitting exercise” by repeatedly demanding additional documents not contemplated under Section 4(2).
    • The Court therefore found no justification for UPRERA to keep L&T’s application pending beyond the statutory period.

    Section 5(2): 30-Day Period Has a Statutory Consequence

    • The central issue in the judgment concerned the interpretation of Section 5 of the RERA Act.
    • Under Section 5(1), the Authority is required, within 30 days of receiving an application, either to grant registration or reject the application for reasons recorded in writing. Section 5(2) expressly provides that if the Authority fails to do either, the project β€œshall be deemed to have been registered.”
    • The Court emphasised that where legislation prescribes not only a time period for performance of a statutory duty but also expressly specifies the consequence of failure to act within that period, the statutory consequence must be given effect.
    • In L&T’s case, the applications remained pending despite the company having answered the objections and furnished the relevant documentation.

    Project Deemed Registered After Expiry of 30 Days

    • The High Court consequently held that UPRERA had only two options: either grant registration within 30 days or reject the application within that period.
    • Keeping the application pending was not a third option available to the Authority.
    • The Division Bench categorically concluded that once the statutory 30-day period expired without rejection, L&T’s application became deemed registered under Section 5(2). UPRERA was thereafter required to provide the registration number, Login ID and password to the developer.

    UPRERA Cannot Subsequently Reject a Deemed Registration

    • The Court went a step further and held that once deemed registration had taken effect, UPRERA no longer had jurisdiction to subsequently reject the original registration application.
    • According to the Court, once a project stands registered by operation of the deeming provision, any subsequent action against such registration would have to be taken in accordance with the mechanism contemplated under Section 7 of the RERA Act, rather than by belatedly rejecting the original application.
    • This is an important interpretation because it gives substantive effect to the statutory deeming fiction under Section 5(2).

    High Court Sets Aside UPRERA’s Rejection

    • The High Court ultimately ruled substantially in favour of Larsen & Toubro.
    • It held that the objection requiring JIL to be included as co-promoter was β€œbaseless and incorrect”, that L&T’s project-registration application acquired deemed-registration status after expiry of the mandatory period, and that UPRERA could not thereafter reject the application in the manner adopted by it.
    • The Court accordingly set aside UPRERA’s decision rejecting L&T’s applications.

    Key Takeaway

    The judgment establishes two significant principles under RERA. First, ownership of the project land is not by itself determinative of who must be treated as a promoter; a developer with valid development rights who constructs and sells the project may independently qualify as promoter under Section 2(zk).

    Second, and more importantly, Section 5(2) creates a genuine statutory deeming fiction. RERA authorities cannot indefinitely keep a complete registration application pending. If the Authority neither grants nor rejects it within the prescribed 30 days, the consequence stipulated by Parliament followsβ€”the project is deemed registered.

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  • Establishment and Jurisdiction of the Real Estate Appellate Tribunal under RERA

    Establishment and Jurisdiction of the Real Estate Appellate Tribunal under RERA

    Date: 22.08.2026

    The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to bring transparency, accountability, and efficiency to the real estate sector in India. A key feature of RERA is the establishment of the Real Estate Appellate Tribunal, which serves as the primary forum for appeals against decisions of the Real Estate Regulatory Authority (RERA Authority) and adjudicating officers. The case of Radicon Infrastructure And Housing Private Limited v. Dhaneshwari Devi Dhyani provides important judicial interpretation on the Tribunal’s establishment, jurisdiction, and functioning.

    Background of the Case

    • Parties Involved:
      • Appellant: Radicon Infrastructure And Housing Private Limited (promoter/builder)
      • Respondent: Dhaneshwari Devi Dhyani (allottee)
    • Dispute: The respondent booked a flat in 2013. Due to disputes over charges and delayed possession, she filed a complaint before the U.P. Real Estate Regulatory Authority, seeking relief from various penalties and compensation for delay.
    • Regulatory Authority’s Order: The Authority ordered the builder to deliver possession and pay 24% interest on the deposited amount from 2015 until possession. The builder appealed this decision.

    Key Legal Questions Addressed

    1. Can a Designated Appellate Tribunal Continue Beyond One Year?
      • Section 43(1) of RERA mandates the establishment of a Real Estate Appellate Tribunal within one year of the Act coming into force. However, the proviso allows the government to designate an existing tribunal to hear appeals until the regular tribunal is established.
      • The court clarified that the designated tribunal can continue to function beyond one year if the regular tribunal is not yet established, to avoid chaos and ensure consumer protection.
    2. Does Appointment of Chairperson and Members Establish the Tribunal?
      • The government appointed the Chairperson and members before officially establishing the tribunal by notification.
      • The court held that the tribunal is established only upon official notification under Section 43(1), not merely by appointing its members. The functioning of the designated tribunal remains valid until the regular tribunal is formally established and authorized.
    3. Jurisdiction of the Designated Tribunal After Establishment of the Regular Tribunal
      • Once the regular tribunal is established, all pending matters before the designated tribunal must be transferred to the new tribunal. Orders passed by the designated tribunal before this transfer remain valid.

    Judicial Reasoning and Interpretation

    • Mandatory vs. Directory Provisions:
      • While the Act uses the word “shall” regarding the one-year period for establishing the tribunal, the court interpreted this timeline as directory, not mandatory. This means that failure to establish the tribunal within one year does not invalidate its later establishment or the actions of the designated tribunal.
      • The court emphasized that statutory interpretation should not frustrate the Act’s objectives or cause injustice to parties who have no control over government delays.
    • Substantial Compliance:
      • The court applied the principle of substantial compliance, holding that as long as the government eventually establishes the tribunal and authorizes its members, minor procedural lapses or delays do not nullify the tribunal’s actions.

    Practical Implications for Stakeholders

    1. For Homebuyers and Allottees:
      • The appellate mechanism under RERA remains accessible even if there are delays in establishing the regular tribunal. Orders passed by designated tribunals are valid until the regular tribunal takes over.
    2. For Builders and Promoters:
      • Appeals must be filed before the appropriate tribunal as designated by the government. Builders are required to deposit a portion of the penalty or compensation before their appeal is entertained.
    3. For Government Authorities:
      • There is a statutory obligation to establish the Real Estate Appellate Tribunal within one year, but delays do not invalidate the process. However, timely establishment is crucial for effective dispute resolution.

    Conclusion

    The judgment in Radicon Infrastructure And Housing Pvt. Ltd. v. Dhaneshwari Devi Dhyani clarifies that the establishment of the Real Estate Appellate Tribunal under RERA is mandatory, but the one-year timeline is directory. The functioning of designated tribunals remains valid until the regular tribunal is formally established and authorized. This interpretation upholds the Act’s objectives of consumer protection and efficient dispute resolution in the real estate sector.

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  • Discretion and Due Process: Tribunal’s Power to Demand Higher Pre-Deposit under RERA Examined

    Discretion and Due Process: Tribunal’s Power to Demand Higher Pre-Deposit under RERA Examined

    Date: 21.08.2026

    The Real Estate (Regulation & Development) Act, 2016 (RERA) has introduced significant reforms in the real estate sector, particularly regarding dispute resolution and the rights of promoters and allottees. A recent legal case involving the Air Force Naval Housing Board (AFNHB) and the Uttar Pradesh Real Estate Regulatory Authority (RERA) provides valuable clarity on the interpretation of pre-deposit requirements for appeals under RERA.

    Background of the Case

    The AFNHB, a zero-profit society dedicated to providing affordable housing to Indian Air Force and Navy personnel and their widows, faced a penalty imposed by RERA. When AFNHB appealed this penalty, it deposited 30% of the penalty amount, as required by Section 43(5) of the Act. However, the Appellate Tribunal demanded the deposit of the entire penalty amount as a pre-condition for hearing the appeal, leading to the dismissal of AFNHB’s appeal for non-compliance.

    Key Legal Issue

    The central question was: Is the deposit of the entire disputed penalty a mandatory pre-condition to maintain an appeal under Section 44(2) of RERA, or is depositing 30% sufficient unless the Tribunal specifically determines otherwise?

    Legal Analysis and Court Findings

    1. Statutory Framework

    • Section 43(5) of RERA mandates that a promoter must deposit at least 30% of the penalty (or a higher percentage if determined by the Tribunal) before an appeal is entertained.
    • The Tribunal has discretion to require a higher deposit, but this must be based on a reasoned determination, not applied routinely.

    2. Judicial Precedents

    • The right of appeal is a substantive right and can only be restricted by clear statutory provisions.
    • The Supreme Court has held that any statutory limitation on the right of appeal, such as pre-deposit requirements, must be strictly construed and cannot be expanded by interpretation.

    3. Tribunal’s Discretion

    • The Tribunal can require more than 30% deposit only after careful consideration of the case’s facts, including the merits, financial hardship, and potential irreparable harm to the appellant.
    • Routine imposition of the full penalty as a pre-deposit would make the right of appeal illusory, especially since the Tribunal is the only forum for factual appeals under RERA.

    4. Application to the AFNHB Case

    • The Tribunal did not provide specific reasons for demanding the full penalty deposit from AFNHB.
    • The High Court found that the Tribunal misapplied the law and relevant precedents, as neither the statute nor previous judgments mandated a full penalty deposit in every case.
    • The High Court set aside the Tribunal’s order and allowed the appeal to proceed on the basis of the 30% deposit already made by AFNHB.

    Implications for Promoters and Allottees

    1. Minimum Pre-Deposit: Promoters must deposit at least 30% of the penalty to maintain an appeal against a RERA order.
    2. Tribunal’s Discretion: The Tribunal may require a higher deposit, but only with specific, reasoned justification based on the case’s circumstances.
    3. Protection of Appeal Rights: Arbitrary or routine demands for full penalty deposits are not supported by law and can be challenged.
    4. Special Considerations: Factors such as the appellant’s non-profit status, financial hardship, and the nature of the infraction should be considered before increasing the pre-deposit requirement.

    Conclusion

    This case reinforces that while RERA aims to ensure compliance and accountability, it also protects the substantive rights of promoters to appeal. The pre-deposit requirement is a safeguard, not a barrier, and must be applied judiciously. Promoters facing penalties should be aware of their rights and the conditions under which higher pre-deposits may be demanded, ensuring that access to justice remains fair and reasonable.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

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  • Allahabad High Court’s Exercise of Inherent Powers Under Section 482 Cr.P.C. in Absence of Prima Facie Evidence of Conspiracy or Attempted Murder

    Allahabad High Court’s Exercise of Inherent Powers Under Section 482 Cr.P.C. in Absence of Prima Facie Evidence of Conspiracy or Attempted Murder

    Date: 06.08.2026

    The Allahabad High Court recently delivered a significant judgment in the connected cases of Awadhesh Agarwal, addressing the scope of inherent powers under Section 482 of the Criminal Procedure Code (Cr.P.C.) and the standards for discharge under Section 227 Cr.P.C. The decision not only quashed criminal proceedings against the applicant in a high-profile attempted murder and conspiracy case but also set aside related proceedings under the Uttar Pradesh Gangsters and Anti-Social Activities (Prevention) Act, 1986.

    Background of the Case

    Two applications under Section 482 Cr.P.C. were filed by Awadhesh Agarwal:

    1. Application No. 21392 of 2022: Sought quashing of criminal proceedings in Session Trial No. 541 of 2018 (arising from Case Crime No. 256 of 2015) under Sections 307, 34, 120-B IPC, pending in Agra.
    2. Application No. 37671 of 2022: Challenged proceedings under Sections 2/3 of the UP Gangsters Act, based on the same predicate offence.

    Both matters were heard together due to their common origin and facts.

    Factual Matrix

    • The case originated from an FIR lodged by Nem Kumar Jain on 22.11.2015, reporting an attempt on his brother’s life by unknown assailants.
    • Subsequent investigation and a later application named Awadhesh Agarwal and others as suspects, primarily on the basis of suspicion and alleged enmity.
    • The applicant was not named in the original FIR; his implication arose only from subsequent statements and circumstantial evidence.
    • Charges were framed against him for conspiracy and attempted murder, and he was also implicated under the Gangsters Act based on the same incident.

    Legal Arguments

    For the Applicant

    • No Direct Evidence: The applicant was not named in the FIR; his implication was based on suspicion and hearsay.
    • Lack of Prima Facie Material: No credible evidence of a meeting of minds or conspiracy.
    • Reliance on Supreme Court Precedents: Cited several judgments clarifying that mere suspicion or strained relations do not constitute sufficient grounds for framing charges of conspiracy.
    • Confessional Statements: Argued that confessional statements of co-accused recorded by police are inadmissible.

    For the State and Opposite Party

    • Sufficient Suspicion: Argued that at the stage of framing charges, strong suspicion based on material collected is enough to proceed to trial.
    • Judicial Restraint: Cited precedents urging courts to avoid quashing proceedings unless there is glaring injustice.

    Key Legal Principles Discussed

    1. Scope of Section 482 Cr.P.C.

    • The High Court has inherent powers to quash proceedings to prevent abuse of process or to secure the ends of justice.
    • This power must be exercised with caution and only in rare cases where the material is wholly inadequate.

    2. Discharge Under Section 227 Cr.P.C.

    • The judge must sift and weigh evidence to determine if a prima facie case exists.
    • If only suspicion (not grave suspicion) arises, discharge is justified.
    • The court is not a mere post office for the prosecution; it must apply judicial mind.

    3. Criminal Conspiracy (Section 120-B IPC)

    • Requires proof of an agreement to commit an illegal act.
    • Mere suspicion, strained relations, or hearsay are insufficient.
    • Direct evidence is rare, but circumstantial evidence must form a complete chain.

    4. Gangsters Act Proceedings

    • If the predicate offence is quashed, proceedings under the Gangsters Act based solely on that offence cannot survive.

    The Court’s Findings

    • The applicant’s implication was based on suspicion and not on concrete evidence.
    • No credible material established a meeting of minds or conspiracy.
    • Confessional statements of co-accused recorded by police are inadmissible.
    • The prosecution failed to bring credible and substantial evidence against the applicant.
    • Following the Supreme Court’s guidance, the court found continuation of proceedings would amount to abuse of process.

    Outcome

    • Criminal Proceedings Quashed: The applicant was discharged from all offences in the attempted murder and conspiracy case.
    • Gangsters Act Proceedings Quashed: Since the predicate offence was quashed, related proceedings under the Gangsters Act were also set aside.

    Significance of the Judgment

    • Reinforces Judicial Safeguards: The judgment underscores the importance of judicial scrutiny at the stage of framing charges and the need to prevent harassment through baseless prosecutions.
    • Clarifies Law on Conspiracy: Reiterates that suspicion or strained relations alone cannot justify criminal conspiracy charges.
    • Sets Precedent for Gangsters Act Cases: Establishes that proceedings under the Gangsters Act cannot continue if the underlying offence is quashed.

    Conclusion

    This judgment is a vital reaffirmation of the principles of criminal jurisprudence, emphasizing the need for credible evidence before subjecting an individual to the ordeal of a criminal trial. It also highlights the High Court’s role in safeguarding individual rights against misuse of the criminal justice system.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

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  • Supreme Court settles the Classification of Roasted Areca Nuts

    Supreme Court settles the Classification of Roasted Areca Nuts

    Date: 16.06.2026

    The import and classification of roasted areca nuts have recently been at the center of a significant legal dispute in India, involving customs authorities, importers, and the interpretation of tariff codes. This article provides a detailed overview of the case, the arguments presented, and the crucial judgments delivered by the Allahabad High Court and the Supreme Court of India.

    Background of the Dispute

    The core issue revolved around whether imported ‘roasted areca nuts’ should be classified under Chapter 20 (as ‘other roasted nuts and seeds’) or under Chapter 8 (as ‘dried areca nuts’) of the Customs Tariff Act, 1975. The classification directly impacted the applicable customs duty and import policy.

    • Importer’s Position: The importer, M/s Rawder Petroleum Pvt. Ltd., argued that their product underwent a specific roasting process at high temperatures, resulting in ‘roasted areca nuts’ that should be classified under Chapter 20 (HSN 2008 19 20).
    • Customs Department’s Position: The department contended that the nuts were merely dried, not roasted, and should be classified under Chapter 8 (HSN 0802 80), citing test reports and the absence of a charred appearance.

    Key Events and Arguments

    1. Advance Ruling: The Customs Authority for Advance Ruling (CAAR) initially ruled in favor of the importer, classifying the product under Chapter 20.
    2. Customs Appeals: The department challenged this ruling, arguing that the process did not meet the criteria for roasting and that the product was not tested before the ruling.
    3. Testing Discrepancies: Multiple laboratory reports showed varying moisture content, with some supporting the importer’s claim of roasting and others supporting the department’s claim of drying.
    4. Procedural Issues: The importer alleged violations of guidelines in sample collection and testing, including lack of transparency and failure to involve the importer in the process.

    Allahabad High Court Judgment: Highlights

    The Allahabad High Court delivered a comprehensive judgment addressing both the classification and procedural aspects:

    1. Classification Decision:
      • The Court upheld the CAAR’s classification of ‘roasted areca nuts’ under Chapter 20 (HSN 2008 19 20), emphasizing the distinction between drying and roasting processes.
      • It noted that roasting involves severe heat treatment, resulting in chemical and physical changes, and is distinct from the moderate heat treatment or drying covered under Chapter 8.
      • The Court referenced international standards and previous judgments, including those of the Madras High Court, supporting the classification under Chapter 20.
    2. Procedural Findings:
      • The Court found that the customs department had not followed established guidelines for sample collection and testing, undermining the reliability of adverse test reports.
      • It criticized the department for not involving the importer in the sampling process and for conducting multiple tests without proper justification.
    3. Relief Granted:
      • The Court quashed the seizure of the goods and directed their release, subject to the condition that the nuts undergo gamma irradiation treatment to ensure safety for human consumption.
      • The Court clarified that its decision was limited to the classification issue and did not address other aspects of the import.

    Supreme Court Judgment: Highlights

    The Supreme Court considered the department’s appeal against the High Court’s decision. Its key directions were:

    1. Affirmation of High Court’s Classification:
      • The Supreme Court affirmed the Allahabad High Court’s decision regarding the classification of the goods as ‘roasted areca nuts’ under Chapter 20.
      • However, it kept the broader question of law open for future cases, indicating that the issue could be revisited in different factual circumstances.
    2. Procedural Safeguards for Release:
      • The Court laid down a detailed procedure for the movement and gamma irradiation of the goods, ensuring customs control and public safety at every stage.
      • It specified that the entire process, including transportation, treatment, and insurance, would be at the sole risk and cost of the importer, with customs retaining control until final clearance.
      • The Court required joint verification, secure transport, insurance, and post-treatment testing before any release or further action.
      • The procedure was stated to be case-specific and not a precedent for future cases.

    Conclusion

    The judgments in this case clarify the distinction between roasted and dried areca nuts for customs classification, reinforce the importance of procedural fairness in sample testing, and set out robust safeguards for the release of contested goods. The Supreme Court’s affirmation, while keeping the legal question open, ensures that similar disputes will be guided by both the technical process and procedural integrity.

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  • Allahabad HC Overturned Excise Penalties Due to Lack of Evidence in Alleged Clandestine Sales and Forgery

    Allahabad HC Overturned Excise Penalties Due to Lack of Evidence in Alleged Clandestine Sales and Forgery

    Date: 26.05.2026

    This article provides a detailed overview of a significant legal case involving M/S Continental Cement Company and its directors, who faced allegations of illegal sale of cement and forgery of official documents, leading to central excise duty demands and penalties. The case highlights the importance of robust evidence in excise duty assessments and the legal standards for proving clandestine manufacturing and sales.

    Background of the Case

    Continental Cement Company, a private limited entity, was engaged in manufacturing ordinary Portland cement, a product subject to central excise regulations. During the assessment period from February 1993 to September 1995, the company was accused of illegally selling 3,839.350 metric tons of cement, allegedly evading central excise duty amounting to Rs. 7,20,154. The allegations were based on an anonymous complaint supported by parallel documents such as invoices, challans, bills, and cash memos.

    Departmental Actions and Penalties

    Upon receiving the complaint, the excise department initiated proceedings against the company and its directors. The department:

    1. Issued Notices and Confirmed Demands:
      • Raised a demand of Rs. 7,20,154 under Rule 9(2) of the Central Excise Rules, 1944, and Section 11-A of the Central Excise Act.
      • Imposed penalties totaling Rs. 3,50,000 under Rules 9(2) and 173Q, and an additional penalty of Rs. 7,20,154 under Section 11-AC.
      • Levied further penalties of Rs. 3,65,000 under Rule 209 against each director: Shri Ajit Kumar, Shri Jagmohan Goel, and Smt. Kamlesh Tayal.
    2. Appeals and Tribunal Proceedings:
      • The company and its directors appealed to the Commissioner (Appeals), who ruled in their favor and set aside the penalties.
      • The department then appealed to the Tribunal, which allowed the department’s appeal ex parte (without hearing the company) and rejected recall applications.
      • The company and directors subsequently appealed to the High Court.

    Key Arguments and Evidence

    Appellants’ (Company’s) Position

    • The directors argued that the complaint and supporting documents were fabricated by a former director, Shri Anil Kumar, and an ex-accountant, both of whom had been removed for misconduct.
    • They claimed signatures were forged and no sales were made outside the official books.
    • The complaint was entertained years after the alleged events, and there was no corroborative evidence of clandestine removal or sale.

    Department’s Position

    • The department relied on statements from buyers who, based on memory, confirmed receiving cement consignments from the company.
    • However, these statements were not supported by documentary evidence, and some buyers denied signatures on certain documents.

    Forensic Examination

    • A government examiner concluded that all questioned documents were written by the same person, casting doubt on their authenticity.

    Judicial Findings

    The High Court found several critical gaps in the department’s investigation:

    1. Lack of Corroborative Evidence:
      • No investigation into excess production, raw material purchases, or electricity consumption.
      • No verification of transportation records or realization of sale proceeds.
      • No evidence of finished product receipts from regular dealers.
    2. Reliance on Unsubstantiated Statements:
      • Buyers’ statements were based solely on memory and lacked documentary support.
    3. Forgery and Malicious Intent:
      • The possibility of forged documents and malicious intent by the former director and accountant was not ruled out.
    4. Legal Standard for Clandestine Removal:
      • The court emphasized that clandestine removal is a serious charge requiring tangible evidence, not mere assumptions or presumptions.

    Final Judgment

    The High Court set aside the Tribunal’s order, restored the first appellate authority’s decision, and allowed all appeals filed by the company and its directors. The court concluded that, in the absence of concrete evidence, no case was made out for clandestine sale or excise duty evasion.

    Key Takeaways

    • Robust Evidence Required: Excise duty demands and penalties must be supported by thorough investigation and tangible evidence.
    • Forensic Analysis Matters: Forensic examination of documents can be pivotal in cases involving allegations of forgery.
    • Legal Safeguards: Courts require more than presumptions to uphold serious charges like clandestine removal and tax evasion.

    This case serves as a precedent for the standards of proof required in excise and tax-related disputes, reinforcing the need for comprehensive and credible evidence before penal action is taken.

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  • Allahabad High Court- Roasted Areca Nuts Classified Under CTH 20081920

    Allahabad High Court- Roasted Areca Nuts Classified Under CTH 20081920

    Date: 09.07.2025

    The Allahabad High Court, Lucknow Bench, has quashed the customs department’s seizure and upheld the classification of roasted areca nuts under Customs Tariff Heading (CTH) 2008 19 20, rejecting the department’s bid to treat them as dried areca nuts under CTH 0802 80.

    The case is a significant win for importers, especially those in the agro-commodity business, as it reinforces the legal status of Customs Authority for Advance Rulings (CAAR) and stresses strict adherence to procedural fairness.

    The petitioner, M/s Rawder Petroleum Pvt. Ltd., imported roasted areca nuts from Indonesia based on an Advance Ruling dated 19.09.2024 obtained from CAAR, New Delhi, which classified the product under CTH 2008 19 20. The Department of Customs, however, challenged this ruling in appellate proceedings and seized the goods, claiming they were dried areca nuts falling under CTH 0802 80, based on test reports from CRCL, New Delhi.

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