Section 43 RERA: Establishment of Real Estate Appellate Tribunal

Section 43 of Real Estate (Regulation and Development) Act, 2016: Establishment of Real Estate Appellate Tribunal

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) The appropriate Government shall, within a period of one year from the date of coming into force of this Act, by notification, establish an Appellate Tribunal to be known as the -- (name of the State/Union territory) Real Estate Appellate Tribunal.

(2) The appropriate Government may, if it deems necessary, establish one or more benches of the Appellate Tribunal, for various jurisdictions, in the State or Union territory, as the case may be.

(3) Every bench of the Appellate Tribunal shall consist of at least one Judicial Member and one Administrative to Technical Member.

(4) The appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Appellate Tribunal:

Provided that , until the establishment of an Appellate Tribunal under this section, the appropriate Government shall designate, by order, any Appellate Tribunal Functioning under any law for the time being in force, to be the Appellate Tribunal to hear appeals under the Act:

Provided further that after the Appellate Tribunal under this section is established, all matters pending with the Appellate Tribunal designated to hear appeals, shall stand transferred to the Appellate Tribunal so established and shall be heard from the stage such appeal is transferred.

(5) Any person aggrieved by any direction or decision or order made by the Authority or by an adjudicating officer under this Act may prefer an appeal before the Appellate Tribunal having jurisdiction over the matter:

Provided that where a promoter files an appeal with the Appellate Tribunal, it shall not be entertained, without the promoter first having deposited with the Appellate Tribunal atleast thirty per cent. of the penalty, or such higher percentage as may be determined by the Appellate Tribunal, or the total amount to be paid to the allottee including interest and compensation imposed on him, if any, or with both, as the case may be, before the said appeal is heard.

Explanation.: - For the purpose of this sub-section "person" shall include the association of allottees or any voluntary consumer association registered under any law for the time being in force.

Legal Commentary & Landmark Judgments: Section 43

Section 43 of RERA mandates the establishment of the Real Estate Appellate Tribunal (REAT) to hear appeals from orders passed by the Regulatory Authority or the Adjudicating Officer, requiring mandatory pre-deposit of the awarded amount.

Appellate Remedies & Forum: Section 43 provides the statutory appellate mechanism under RERA.
RERA Regulatory Governance: Under sub-section (1), the Appropriate Government shall establish a Real Estate Appellate Tribunal consisting of a Chairperson (who is or has been a High Court Judge) and judicial and technical/administrative members.
Sub-Section (5): Authority: Under sub-section (5), any person aggrieved by any direction or order of the Authority or Adjudicating Officer may file an appeal within sixty days.

However, the proviso to sub-section (5) mandates that where a promoter files an appeal, such appeal shall not be entertained unless the promoter has deposited with the Appellate Tribunal at least thirty percent of the penalty, or the total amount to be paid to the allottee including interest and compensation, or both.

Key Landmark Precedents:

Newtech Promoters and Developers Pvt. Ltd. v. State of U.P. (2021) SCC OnLine SC 1044: The Supreme Court upheld the constitutional validity of the mandatory pre-deposit condition under Section 43(5), holding that requiring promoters to deposit the full awarded amount before an appeal can be entertained is a reasonable classification aimed at safeguarding consumer liquidity and deterring dilatory appeals.

Legal Commentary:

The pre-deposit condition under Section 43(5) is absolute and cannot be waived by the Appellate Tribunal. If a promoter fails to deposit 100% of the refund/interest awarded by the Authority to the allottee, the appeal is dismissed in limine without any examination of merits.

Section 43: Establishment of Real Estate Appellate Tribunal

Section 43 of Real Estate (Regulation and Development) Act, 2016: Establishment of Real Estate Appellate Tribunal

Legal Commentary & Landmark Judgments: Section 43