Bombay High Court
M/S. SHREE SAI DEVELOPERSversusASHOK ATHMARAM KARIA
- Decided
- Disposal
- Dismissed
- Bench
- PRAFULLA S KHUBALKAR
Holding
The suit is not barred by Section 79 of the Real Estate Regulatory Authority Act, 2016, and the trial court’s order rejecting the dismissal application is affirmed.
Summary
The applicants, who were original defendants in a suit for specific performance and permanent injunction, filed a Civil Revision under Section 115 CPC challenging the trial court’s order rejecting their application under Order VII Rule 11 seeking dismissal of the plaint. They contended that Section 79 of the Real Estate Regulatory Authority Act, 2016 barred the civil court’s jurisdiction and that the dispute should be before the RERA. The trial court held that the suit primarily sought specific performance of an oral contract and did not fall within the exclusive jurisdiction of RERA, thus rejecting the dismissal application. On appeal, the High Court examined the scope of Section 79 and the Supreme Court’s decision in Dahiben v. Arvindbhai, concluding that the reference to RERA does not render the suit non‑maintainable. The Court found no error in the trial court’s reasoning and dismissed the revision application.
Issues considered
- Whether Section 79 of the Real Estate Regulatory Authority Act, 2016 bars the civil court’s jurisdiction to entertain a suit for specific performance and permanent injunction.
- Whether the application under Order VII Rule 11 of the CPC for dismissal of the plaint is maintainable in view of the alleged bar under Section 79.
Legislation cited
- Code of Civil Procedure, 1908 — s. 115
Subjects
- jurisdiction
- RERA
- Section 79
- specific performance
- civil court
- Order VII Rule 11
- revision
- real estate
- injunction
Judgment
54-CRA-16-21.doc
Rushi modhe
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
CIVIL REVISION APPLICATION NO. 16 OF 2021
M/s. Shree Sai Developers and Ors. ...Applicants
V/S.
Ashok Athmaram Karia ...Respondent
Mr. Shivprasad Shetty i/b Ms. Deepti Mistry, for the applicant.
None for the respondent.
CORAM : PRAFULLA S. KHUBALKAR, J.
DATE : 22nd JUNE, 2026.
P.C. :-
1. Heard,
2. Rule. Rule made returnable forthwith. Heard learned
counsel for applicants as well as respondent finally.
3. By the instant Civil Revision Application under Section 115
of the Civil Procedure Code, 1908, the applicants / original defendants
have challenged order dated 2nd December 2020 passed by the trial
court rejecting their application under Order VII Rule 11 of C.P.C for
rejection of plaint.
4. The applicants are the original defendants in the suit filed
by the respondent seeking specific performance of contract and
permanent injunction. In the suit, the defendants had filed an
application under Order VII Rule 11 of C.P.C r/w Section 79 of the
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Real Estate Regulatory Authority Act, 2016 (hereinafter referred as
RERA) and prayed for rejection of plaint. The application was opposed
by the original plaintiff and by order dated 2 nd December 2020 the
trial Court had rejected the application. Feeling aggrieved by this
order, the defendants have filed the instant Civil Revision Application.
5. Mr. Shivprasad Shetty learned counsel for applicant
submitted that the plaint deserved to be rejected in view of bar of
jurisdiction as provided under Section 79 of the Real Estate Regulatory
Authority Act. He submitted that the controversy involved in the suit
should be agitated before the Real Estate Regulatory Authority and in
view of the Section 79 of the Real Estate Regulatory Authority Act the
suit is not maintainable. In support of his submissions about scope of
Order VII Rule 11 of C.P.C, he placed reliance on judgment of Hon'ble
Supreme Court in the matter of Dahiben V/s Arvindbhai Kalyanji
Bhanusali reported (2020) 7 SCC 366.
6. It has to be noted that the plaintiff’s suit is for specific
performance of contract with a relief of permanent injunction. In the
suit the plaintiff has alleged that he has paid an amount of Rs.
10,00,000/- in accordance with the oral agreement for purchase of the
suit property. Although there is a reference to Real Estate Regulatory
Authority project, it has to be noted that the plaintiffs' primary relief
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54-CRA-16-21.doc
is for specific performance of contract. The provision of bar of
jurisdiction as contained in Section 79 of the Real Estate Regulatory
Authority Act deal with matters which can be exclusively dealt with
by the Real Estate Regulatory Authority. A perusal of the Section 79 of
the Real Estate Regulatory Authority Act shows that the jurisdiction of
Civil Court to entertain a suit qua any action taken as per provisions of
the said act is barred. As such since the dispute involved in the suit is
not with respect to an issue to be dealt with by the Real Estate
Regulatory Authority, the suit cannot be said to be barred on that
count. From averments made in the plaint it is clear that the plaintiff
has filed the suit for specific performance of contract based on an oral
agreement and as such only because there is reference to the Real
Estate Regulatory Authority, the suit cannot be said to be not
maintainable on that count. The position of law as laid down in the
matter of Dahiben (Supra) is not disputed but the instant matter has
to be decided by considering the averments in the plaint.
7. A perusal of the impugned order shows that the Trial Court
has given due consideration to the contentions canvassed on behalf of
the parties and after considering provisions of Section 79 of the Real
Estate Regulatory Authority Act, has recorded its reasons for rejecting
the application. The reasons recorded by the trial court does not at all
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appear to be perverse or palpably erroneous, count warranting
interference by this Court. Hence, the Civil Revision Application is
rejected. No order as to costs.
(PRAFULLA S. KHUBALKAR, J.)
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