Civil courts have no jurisdiction in real estate issues: HC

The Punjab and Haryana High Court has held that civil courts do not have jurisdiction to entertain recovery suits filed by promoters or realtors against flat allottees for unpaid dues following specialised redressal mechanism provided under the Real Estate (Regulation and Development) Act, 2016.

The assertion came as Justice Anil Kshetarpal allowed 14 revision petitions filed against orders passed by trial courts on a plea by a developer. “Once a specialised tribunal has been created under the 2016 Act, which provides for remedy under the Act, the Civil Court should not entertain the suit,” the court said.

Justice Kshetarpal said the civil courts possessed “plenary jurisdiction” to try civil matters only “unless such jurisdiction is expressly or impliedly barred by a statute”. Section 79 of the 2016 Act expressly bars the jurisdiction of civil courts in matters where the authority, the adjudicating officer, or the appellate tribunal is empowered to adjudicate.

Justice Kshetarpal said the only issue in the pleas before the Bench was whether jurisdiction of the civil court was excluded under Section 79 of the Act in a suit filed by a promoter for the recovery of unpaid dues. The dispute arose from a residential project at Faridabad, where the petitioners—allottees—were proceeded against by the promoter for non-payment after possession had already been delivered.