Introduction:

On 02.01.2025, the Maharashtra Real Estate Appellate Tribunal (“REAT”) in  Atul Prabhu vs. Neptune Ventures & Developers Pvt. Ltd. & Ors. directed civil imprisonment against the promoter/ director for non- compliance with a previous order passed by the REAT.

Facts and Findings:

Despite an earlier order passed by REAT relating to attachment of properties of the judgement debtor, there was no progress on the same on the part of the Collector, Mumbai Suburban (“Collector”). Further, no material was placed on record to prove that a notice was served on the judgement debtor as provided u/s 64 of the Real Estate Regulatory Authority Act, 2016 (“RERA Act”) dealing with the penalty for failure to comply with the orders of the REAT.

Subsequently, a fresh attachment warrant came to be issued directing the Collector to attach the properties of the judgement debtor and submit a compliance report to that effect. However, no report was submitted. Thus, an explanation was sought from the Collector for non-compliance with the order of REAT.

Further, the REAT directed the issuance of a fresh warrant for recovery, calling upon the Collector to attach the movable and immovable property of the judgement debtors. At this instance too, no compliance report was submitted. Also, no report of the service of notice u/s. 64 of the RERA Act was placed on record.

Hence, post the deposit of subsistence allowance by the Decree holders under Order 21 Rule 39, the REAT directed the issue of warrant of arrest on judgement debtors in civil prison for three months for which the City Civil court was called upon for assistance.

Analysis:

This order of the REAT deserves significance for its intent to uphold the supremacy of Law in present times. Further, the order calls for an introspection of the lackadaisical attitude of the civil authorities in implementing the orders of the Tribunal.

MHCO Comment:

The fact that the civil imprisonment was directed for the first time in 8 years 3 months is what makes this order unique and novel. Even Section 55 of the Code of Civil Procedure provides for the arrest of the judgement debtor for execution of a decree. The order surely deserves admiration for upholding the rule of law in the country.

It also serves as a great precedent and deterrent to habitual judgement debtors oblivious of the procedural technicalities of non-compliance with the Decree of a court.

This update was released on 06 Jan 2025.

The views expressed in this update are personal and should not be construed as any legal advice. Please contact us directly on +91 22 40565252 or legalupdates@mhcolaw.com for any assistance.

Legal Update Team
MANSUKHLAL HIRALAL & COMPANY
Advocates, Solicitors and Notaries
T: +91 22 40565252
Mumbai Office: Surya Mahal, 2nd Floor, 5, Burjorji Bharucha Marg, Fort, Mumbai-400 023, India
Delhi Office: Block C-9, Lower Ground Floor, Jangpura Extension, New Delhi - 110 014, India
www.mhcolaw.com

"Noted lawyer in the Real Estate practitioner from India" - Chambers & Partners

Please consider the environment before printing this email

The information contained in this communication is intended solely for the use of the individual or entity to whom it is addressed and others authorized to receive it. This communication may contain confidential or legally privileged information. If you are not the intended recipient, any disclosure, copying, distribution or action taken relying on the contents is prohibited and may be unlawful. If you have received this communication in error, or if you or your employer does not consent to email messages of this kind, please notify the sender immediately by responding to this email and then delete it from your system. No liability is accepted for any harm that may be caused to your systems or data by this message.