Court Directs Authority to Hear Complainants Before Dismissing Real Estate Disputes
In a significant ruling, the Kerala High Court has quashed orders passed by the Kerala Real Estate Regulatory Authority (K-RERA), which rejected complaints without providing an opportunity for a hearing to the complainants. The judgment, delivered by Justice Ziyad Rahman A.A., emphasized the importance of adhering to the principles of natural justice as mandated under the Real Estate (Regulation and Development) Act, 2016.
The petitioners, Renney Geo Varghese and Sindhu M. Poduval, had approached the High Court challenging the orders of K-RERA, which dismissed their complaints at a preliminary stage without numbering them or allowing the petitioners to present their case. The orders in question were based on a detailed discussion of the merits, despite the lack of a formal hearing.
The court noted that the dismissal of complaints without a hearing was a misconception of the law. Section 38 of the Real Estate (Regulation and Development) Act, 2016, requires the authority to be guided by the principles of natural justice, which includes providing a fair hearing to all parties involved before making any adverse decisions.
Justice Rahman pointed out that the K-RERA's actions contravened its obligations under the law, as the authority prematurely addressed the merits of the complaints during the scrutiny and numbering stage, which is beyond its jurisdiction. The judgment highlights that the scrutiny process should focus solely on procedural correctness, and any adjudication on the merits should follow a proper hearing.
The court further clarified that the relevant regulations under the Kerala Real Estate Regulatory Authority (General) Regulations, 2020, primarily deal with procedural formalities and do not authorize the authority to delve into the substantive issues of the complaints at the initial stage.
In light of these observations, the High Court quashed the impugned orders and directed K-RERA to number the complaints and consider them on merits after giving the petitioners an opportunity to be heard. This decision reinforces the obligation of regulatory authorities to uphold procedural fairness and ensure that the rights of complainants are protected in accordance with statutory mandates.
Bottom Line :
Real Estate (Regulation and Development) Act, 2016 - Authority must adhere to principles of natural justice - Orders rejecting complaints without hearing the complainants or numbering the complaints are unsustainable.
Statutory provision(s): Real Estate (Regulation and Development) Act, 2016 Section 38, Kerala Real Estate Regulatory Authority (General) Regulations, 2020 Regulations 8, 9, and 10.
