Court directs parties to resolve ownership disputes through Civil Court, clarifies TNRERA's limited jurisdiction under RERA Act
In a significant judgment delivered on September 9, 2026, the Madras High Court, presided by Justice D. Bharatha Chakravarthy, ruled that the Tamil Nadu Real Estate Regulatory Authority (TNRERA) does not have the jurisdiction to adjudicate disputed questions of title concerning immovable property in project registration matters under the Real Estate (Regulation and Development) Act, 2016 ("RERA Act").
The case arose from a dispute between N. Balakrishnan (petitioner), who claimed ownership of a property in Thiruneermalai village, and the second respondent who obtained project registration from TNRERA for developing the said property. The petitioner challenged the registration granted on April 10, 2026, asserting that a pending civil suit (O.S.No.1117 of 2023) involving the same property and an interim injunction order restraining him from interfering with the property were not disclosed to TNRERA by the project promoter.
The petitioner contended that the second respondent suppressed material facts regarding the ownership dispute and the pending litigation while applying for project registration. He argued that such non-disclosure violated the statutory requirements under Section 4(2)(l) of the RERA Act, which mandates promoters to declare legal title and absence of encumbrances on the land.
The petitioner further criticized TNRERA for allegedly misplacing his objection letter and for asking him to file a complaint in a prescribed form instead of considering his objections substantively. He claimed this amounted to an arbitrary and illegal act warranting quashing of the registration order.
On the other hand, the second respondent defended the registration, asserting ownership rights and pointing out that various authorities including revenue officials, the Chennai Metropolitan Development Authority (CMDA), and the Commissioner of Land Administration had advised the petitioner to resolve title disputes through Civil Courts. The second respondent also highlighted that the injunction order was in their favor and the civil suit was pending trial, thus reinforcing the legitimacy of the registration.
TNRERA submitted that it had duly considered all available materials and exercised its discretion lawfully in granting the registration.
After hearing both sides, the High Court observed that while Section 4(2)(l) mandates promoters to declare legal title and disclose encumbrances, TNRERA's jurisdiction is limited and it is not empowered to delve into disputed title issues. The Court emphasized that disputed questions of title are to be resolved exclusively by competent Civil Courts.
The Court further noted that the civil suit filed by the second respondent had found a prima facie case in their favor, supported by an interim injunction order against the petitioner. Given this, TNRERA was justified in granting registration as revoking it would be inappropriate at this stage, especially since the project was in an advanced stage of construction.
Importantly, the Court clarified that registration with TNRERA does not prejudice the petitioner's right to pursue all civil remedies, including filing counterclaims or suits against the project promoter in the Civil Court. The petitioner was thus directed to continue contesting ownership issues in the appropriate forum.
Consequently, the Madras High Court dismissed the writ petition, upholding TNRERA's registration order while keeping open the petitioner's liberty to seek relief in Civil Court. The judgment underscores the limited scope of Real Estate Regulatory Authorities in title disputes and reinforces the primacy of Civil Courts in adjudicating property ownership controversies.
Bottom Line:
Tamil Nadu Real Estate Regulatory Authority (TNRERA) - Scope of jurisdiction - TNRERA cannot adjudicate disputed questions of title and is not required to revoke a registration already granted where a prima facie case in favor of the project promoter exists and where the matter is pending before a Civil Court.
Statutory provision(s):
Real Estate (Regulation and Development) Act, 2016 Section 4(2)(l)
