Real Estate Appellate Tribunal cannot pass suo moto orders: Delhi High Court

► Date : May 26, 2022

In a significant judgement the Delhi High Court while ruling in favour of petitioners held that the Real Estate Appellate Tribunal do not have power to draw suo moto proceedings while quashing the orders issued by the Tribunal

The petitioner a developer moved to high court in this case after the development authority informed that the plans as submitted cannot be accorded approval in light of the orders passed by the Tribunal.

The Tribunal vide its suo moto orders on 17 Nov 2021 and subsequently on 24 Nov 2021 passed the following order to the effect that all construction activity in NCT of Delhi, residential as well as commercial being undertaken without registration with the Real Estate Regulatory Authority was stayed till the registration of their project with the Real Estate Regulatory Authority and further that municipal authorities in respect of projects falling within the scope of the Act shall grant the sanction, subject to their obtaining registration with the Authority appointed under the Act. Directions were also issued to several authorities to comply with the orders and seeking further details

The petitioner challenged the jurisdiction of the Tribunal in passing of such orders in view of the provisions of the Act

High Court observed that the Tribunal has been constituted as a forum whose jurisdiction can be invoked by any person aggrieved by a direction, decision or order made by the Authority or an Adjudicating Officer and the Act do not confer, recognize or envisage any original or plenary power or authority being exercised by the Appellate Tribunal

The Appellate Tribunal, it must be remembered, is a creation of statute. It is not an authority which may be recognised as being vested with inherent powers and it can neither assume nor arrogate to itself a power or authority which may otherwise not stand conferred on it by the Act, the Court said

Accordingly, the orders dt. 17 November 2021 and 24 November 2021 were set aside while also quashing the proceedings relating to suo moto case

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