Remedies available under Consumer Protection Act and RERA are concurrent

The Delhi High Court reiterated that remedies available to home buyers under the Consumer Protection Act, 1986 (CPA) and Real Estate (Development and Regulation) Act, 2016 (RERA) are concurrent.

The said observation was held in the matter of M/s M3M India Pvt. Ltd. vs Dr. Dinesh Sharma and Anr. (CM (Main) 1244/2019), decided on 06.09.2019.

Challenge

In the instant petition along with a batch of similar petitions, a question arose whether proceedings under the Consumer Protection Act, 1986 could be commenced by homebuyers against developers, after the commencement of RERA.
The instant appeal arose from the order of NCDRC wherein the Commission held that remedies provided under CPA and RERA are concurrent and the jurisdiction of the forums/commissions constituted under CPA is not ousted by RERA, particularly Section 79 thereof.

Section 79 of RERA provides that no civil court shall have jurisdiction over matters empowered to be decided by RERA under the Act and no court shall grant injunction in pursuance of any power conferred by or under this Act.

Held

The Delhi High Court relying on the judgment in Pioneer Urban Land and Infrastructure Ltd. & Anr. vs. Union of India & Ors., 2019 SCC OnLine SC 1005 wherein the Apex Court held that remedies under IBC and RERA which are provided to allottees of flats/apartments are concurrent remedies and they are in a position to avail remedies under the Consumer Protection Act, 1986, RERA as well as the triggering the Code.

Also, it was observed that the provisions of RERA were not intended to be exclusive, but to run parallel with other remedies.  Citing the proviso of Section 71 (1) of the RERA which states that “Provided that any person whose complaint in respect of matters covered under sections 12, 14, 18 and section 19 is pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission or the National Consumer Redressal Commission, established under section 9 of the Consumer Protection Act, 1986, on or before the commencement of this Act, he may, with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending before it and file an application before the adjudicating officer under this Act.”

Thereby the court concluded that remedies available to the homebuyers/ allottees herein under CPA and RERA are concurrent, and there is no ground for interference with the view taken by the National Commission in these matters.