Real Estate Appellate Tribunal

The Real Estate Appellate Tribunal (REAT) is a vital institution created under the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA. Its primary role is to adjudicate disputes arising from decisions of the Real Estate Regulatory Authority or adjudicating officers. By establishing a dedicated appellate body, the law aims to promote transparency, protect the interests of homebuyers, and ensure timely justice in the real estate sector.

This article provides a detailed examination of the Real Estate Appellate Tribunal, its establishment, composition, powers, and procedural aspects, and explains why it plays a crucial role in strengthening the regulatory framework of the real estate sector in India.

Why was the Real Estate Appellate Tribunal Created?

Before the enactment of RERA, the real estate sector in India faced many challenges, such as delayed possession, unfair trade practices, and lack of transparency. Aggrieved buyers often had to approach civil courts or other forums, leading to prolonged litigation and uncertainty.

To overcome these hurdles, RERA introduced specialised mechanisms, including the Real Estate Regulatory Authority for adjudication and the Real Estate Appellate Tribunal to hear appeals against orders passed by the Authority. The Appellate Tribunal thus acts as a specialised forum for speedy and expert resolution of disputes related to real estate projects.

Establishment of the Real Estate Appellate Tribunal (Section 43 of RERA)

Mandatory Establishment

The law mandates that each State or Union Territory (referred to as the “Appropriate Government”) must establish the Real Estate Appellate Tribunal within one year from the commencement of RERA. The Tribunal is notified through an official government notification, clearly stating the name and jurisdiction.

Multiple Benches

For convenience and effective jurisdictional management, the Appropriate Government may establish one or more benches of the Tribunal. This allows parties from various parts of the State or Union Territory to approach the nearest bench, facilitating easier access to justice.

Interim Arrangements

Until a new Appellate Tribunal is constituted, the Government may designate any existing Tribunal functioning under other laws to hear RERA appeals. Pending appeals before such designated Tribunals are transferred seamlessly to the newly established Appellate Tribunal once it is operational.

Who Can Appeal?

Any person aggrieved by an order or decision passed by the Real Estate Regulatory Authority or an adjudicating officer under RERA can file an appeal before the Tribunal. The term “person” is broadly defined and includes associations of allottees or consumer organisations registered under any law.

Deposit Condition for Promoters

An important safeguard under the law is that a promoter (developer) filing an appeal must deposit at least 30% of the penalty or such higher amount as the Tribunal may specify before the appeal is entertained. This ensures that frivolous appeals by promoters are discouraged and protects the interest of allottees.

Procedure for Filing Appeals under RERA (Section 44)

Who May File an Appeal?

• Any person aggrieved by an order of the Regulatory Authority or adjudicating officer.
• The Appropriate Government or Competent Authority also has the right to file appeals.

Time Limit for Filing

An appeal must be preferred within 60 days from the date on which the aggrieved party receives a copy of the order or decision.

The Tribunal has the discretion to condone delay beyond the stipulated 60 days if it is satisfied that sufficient cause exists for the delay.

Format and Fees

The appeal should be made in the prescribed form and accompanied by the fees as determined by the rules framed under RERA. This standardisation promotes clarity and uniformity in the filing process.

Interim Orders

While the appeal is pending, the Tribunal has the power to grant interim relief or orders as it deems fit. This may include staying the operation of the impugned order to protect the interests of parties pending final disposal.

Communication of Orders

Every order passed by the Tribunal must be communicated to the parties and to the Regulatory Authority or adjudicating officer whose decision is under appeal. This ensures transparency and enables all stakeholders to stay informed.

Expeditious Disposal

The law requires that the Tribunal dispose of the appeal as quickly as possible, ideally within 60 days of receiving it. If for some reason, disposal is not possible within this timeframe, the Tribunal must record the reasons for delay in writing.

Power to Call for Records

The Tribunal may, suo moto (on its own) or on application, call for the records from the Authority or adjudicating officer to verify the legality or propriety of the impugned order and pass appropriate orders.

Composition of Real Estate Appellate Tribunal (Sections 45 and 46)

Structure of the Tribunal

The Real Estate Appellate Tribunal must consist of:

• A Chairperson.
• At least two full-time Members:
  • One Judicial Member.
  • One Technical or Administrative Member.

Qualifications of Members

• Chairperson: Must be a sitting or retired Judge of a High Court.
• Judicial Member: Should have at least fifteen years of judicial experience or be an advocate with a minimum of twenty years’ experience handling real estate matters, or have held a senior legal position such as an Additional Secretary in the Indian Legal Service.
• Technical or Administrative Member: Must be an expert in areas such as urban development, real estate, infrastructure, economics, law, commerce, accountancy, management, public affairs, or administration with a minimum of twenty years’ experience. Alternatively, such a person may have held a high-ranking government post equivalent to an Additional Secretary.

Appointment Process

• The Chairperson is appointed by the Appropriate Government in consultation with the Chief Justice of the High Court or their nominee.
• Judicial and Technical Members are appointed by the Appropriate Government on the recommendation of a Selection Committee comprising the Chief Justice’s nominee, the Secretary of the Housing Department, and the Law Secretary.

Term of Office, Resignation, and Removal (Sections 47, 48, 49, and 52)

Term and Age Limit

• The Chairperson and Members hold office for a maximum term of five years from the date they assume office.
• The Chairperson who is or has been a High Court Judge must retire by the age of 67, while other Members retire by the age of 65.
• Reappointment is not permitted after the expiry of the term.

Resignation

Members can resign from their office by giving a written notice of at least three months to the Appropriate Government.

Grounds for Removal

The Appropriate Government may remove a Member or Chairperson in consultation with the Chief Justice of the High Court if:

• They have been declared insolvent.
• Convicted of an offence involving moral turpitude.
• Become physically or mentally incapable of performing duties.
• Acquire any financial or other interest prejudicial to their functions.
• Abuse their position to the detriment of public interest.

Removal follows a proper inquiry conducted by a High Court Judge, and the Member is given reasonable opportunity to defend themselves.

Suspension

During the inquiry for removal, the Member or Chairperson may be suspended until a decision is taken.

Filling Vacancies

Any vacancy, other than temporary absence, must be filled within three months to avoid disruption of Tribunal proceedings. Pending matters continue from the stage they were left.

Post-Retirement Restrictions (Section 50)

To maintain impartiality and public confidence, the Tribunal members face certain post-retirement restrictions:

• They cannot accept employment or any role connected with any promoter or organisation they had official dealings with during their tenure.
• They are prohibited from providing advice or participating in proceedings involving the Authority that they had previously adjudicated.
• Confidential information acquired during office cannot be disclosed or misused.

These safeguards prevent conflict of interest and uphold the integrity of the Tribunal.

Staff and Administrative Powers (Sections 51 and 54)

Staff and Employees

The Appropriate Government is responsible for providing the Tribunal with officers and employees necessary to function effectively. The Chairperson exercises general supervision over the staff.

The salary and other conditions of service of such employees are prescribed by the Government and cannot be arbitrarily altered to their disadvantage.

Administrative Powers of Chairperson

Apart from presiding over hearings, the Chairperson holds the power of general superintendence and direction over the Tribunal’s affairs. The Chairperson manages the Tribunal’s administration and ensures smooth functioning.

Powers and Procedures of the Tribunal (Sections 53 and 55)

Procedural Autonomy

The Tribunal is not bound by the strict procedural laws such as the Code of Civil Procedure (CPC) or the Indian Evidence Act. Instead, it follows the principles of natural justice and may regulate its own procedures, ensuring flexibility and efficiency.

Civil Court Powers

For effective discharge of its functions, the Tribunal has powers similar to those of a civil court, including:

• Summoning and enforcing attendance of witnesses and examining them under oath.
• Requiring discovery and production of documents.
• Receiving evidence on affidavit.
• Issuing commissions for examination of witnesses or documents.
• Reviewing its own decisions.
• Dismissing applications for default or proceeding ex parte.

Validity of Proceedings

The Tribunal’s proceedings are not invalidated by:

• Vacancies or defects in its constitution.
• Appointment defects of acting members.
• Procedural irregularities that do not affect the merits of the case.

This protects the Tribunal’s decisions from being easily challenged on technical grounds.

Right to Legal Representation (Section 56)

Parties appearing before the Tribunal may either:

• Appear in person, or
• Authorise representation by professionals such as Chartered Accountants, Company Secretaries, Cost Accountants, Legal Practitioners, or their own officers.

This provision helps parties access specialised assistance in complex real estate disputes.

Execution of Tribunal Orders (Section 57)

• Orders passed by the Tribunal are executable as decrees of a civil court, granting the Tribunal authority to enforce its decisions effectively.
• The Tribunal can also forward its orders to a local civil court for execution, where the court treats such orders as its own decrees.

This ensures that Tribunal decisions are binding and enforceable, thereby safeguarding the rights of parties.

Appeal to the High Court (Section 58)

Right to Appeal

Any person aggrieved by a Tribunal’s decision may file an appeal before the High Court within 60 days of the communication of the decision.

Grounds for Appeal

Appeals are entertained on grounds specified under Section 100 of the Code of Civil Procedure, mainly involving substantial questions of law.

Condonation of Delay

The High Court may condone delay in filing the appeal if sufficient cause is shown.

No Appeal Against Consent Orders

No appeal lies against orders passed with the consent of parties, promoting finality in consensual settlements.

Conclusion

The Real Estate Appellate Tribunal under RERA is designed to provide an accessible, efficient, and specialised forum for resolving real estate disputes. Its balanced composition, procedural flexibility, and wide-ranging powers equip it to handle complex cases effectively while safeguarding the interests of buyers and developers alike.

By understanding the structure, functions, and procedures of the Tribunal, stakeholders can navigate the real estate regulatory landscape with greater confidence. Ultimately, the Tribunal contributes significantly to the transformation of the Indian real estate sector into a more transparent and trustworthy market.