The advent of RERA does not bar a homebuyer from approaching the Consumer Fora

The NCDRC held that a homebuyer may approach either RERA authorities or consumer fora and none of the acts bars the jurisdiction of the other. However, both remedies cannot be pursued concurrently.

The above ratio was delivered by the National Consumer Disputes Redressal Commission, New Delhi (NCDRC) in the matter of Ajay Nagpal vs. Today Homes & Infrastructure Pvt. Ltd. in Consumer Case No. 1764 of 2017 decided on 15.04.2019

Challenge

A batch of complaints was filed before the NCDRC by homebuyers for compensation from the Respondent for failure to deliver possession of flats within the stipulated time.

One of the preliminary objections raised by the builder Respondent was that after the commencement of RERA, consumer complaint was not maintainable, as Section 79 of RERA bars jurisdiction of civil courts.
Held

The NCDRC while appreciating the import of Section 79 of RERA observed that the provision only prohibits a Civil Court from entertaining any suit or proceeding in respect of any matter which can be decided by the Authorities constituted under the RERA. However, the Court held that as Consumer Fora are not Civil Courts, the provisions of Section 79 which bar the jurisdiction of Civil Courts, will not be attracted.

The NCDRC held that both, the Consumer Protection Act, 1986 and the Real Estate (Regulation and Development) Act, 2016 are supplemental to each other and there is no provision in the Consumer Protection Act which is inconsistent with the provisions of RERA. A Consumer cannot pursue two remedies for the same cause of action. However, if a Consumer has not approached for redressal of its grievance under the particular Statute, the Consumer can approach the Consumer Fora under the Consumer Protection Act. But, if the Consumer had already approached the Authority under the relevant Statute, he cannot simultaneously file any complaint under the Consumer Protection Act. Mere availability of a right to redress the grievance in a particular Statute will not debar the Complainant/Consumer from approaching the Consumer Fora under the Act. The NCDRC further clarified that even though under Sections 14, 15, 18 and 19 of RERA, various provisions have been made which are to be followed by the Developer/Promoters and the rights and duties and the return of amount as compensation as also rights and duties of Allottees, yet same cannot mean to limit the right of the Allottee only to approach the Authorities constituted under the RERA, and such an aggrieved consumer is still free to approach the Consumer Fora under the Consumer Protection Act. Section 71 of RERA which gives the power to adjudicate, does not expressly or impliedly bar any person from invoking the provisions of the Consumer Protection Act.