“Every Day 4-5 People Filing Petitions”: Top Court Cautions Against Flood Of Stalled Housing Project Cases

“Every Day 4-5 People Filing Petitions”: Top Court Cautions Against Flood Of Stalled Housing Project Cases

Today, the Supreme Court cautioned against the growing number of petitions filed by homebuyers over stalled real estate projects, observing that entertaining every such dispute could delay the final resolution of a batch of cases involving alleged irregularities by developers and financial institutions.

A Bench comprising Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and V Mohana said the Court could not become a forum for every troubled housing project in the country, particularly when the lead case was ready for final disposal.

“We never thought that every day people would keep filing IAs, MAs and contempt petitions, and we would be stuck without deciding the main case. Better you wait,” CJI Kant told counsel appearing for the petitioners.

The Bench observed that homebuyers facing similar grievances should await the outcome of the pending lead case, which would settle the legal principles applicable to such disputes. The ruling, it said, would guide High Courts while deciding individual cases.

“After this Court takes a view, the High Courts cannot take a different view,” CJI Kant remarked.

The Court was hearing transfer petitions concerning stalled housing projects. Counsel for the petitioners submitted that the projects had been abandoned and that some High Courts had already delivered judgments in related disputes, prompting the parties to approach the Supreme Court.

The Bench, however, indicated that it was not inclined to entertain the transfer petitions at this stage, as the lead case was ready for final adjudication.

“We are not inclined to entertain these transfer petitions because the main case, the lead case, is ripe for final disposal. Whatever principles are laid down by this Court, the High Courts will decide the pending cases accordingly,” CJI Kant said.

During the hearing, counsel submitted that the projects were already before the court-appointed amicus curiae, who was examining complaints concerning stalled housing developments. They also referred to action being taken by the Central Bureau of Investigation (CBI).

Justice Bagchi clarified that the proceedings before the amicus curiae were limited to projects involving a specific group of developer companies that the Supreme Court had taken cognisance of. He said the proceedings could not be expanded to cover every stalled housing project in the country.

“It does not mean that every housing project in India has to be taken up by the amicus. The amicus is examining projects concerning a group of developer companies of which we have taken cognisance. Others will have to wait until we deliver a verdict. We are not going to burden the amicus as well as the Court with multiple litigations of a similar nature,” he observed.

CJI Kant also expressed concern over the increasing number of petitions being filed in the matter, noting that the Court was receiving several applications every day.

“Every day we are seeing four or five people filing petitions. It has become a new channel now,” he remarked.

When counsel reiterated that the projects had been abandoned and that High Courts were awaiting the Supreme Court's decision, the CJI said the parties would have to wait for the outcome of the lead case or pursue their remedies before the respective High Courts.

“Now you come here, and another 200 people from the same project will come. A decision will never be obtained. There will be no end. You have to wait or approach the respective High Courts,” he said.

The Bench also indicated that the petitioners could withdraw their transfer petitions and approach the Supreme Court or the relevant High Court at an appropriate stage after the lead case was decided.

When counsel suggested listing the petitions again on November 26, the Court reiterated that it was not inclined to entertain them at this stage. The Bench maintained that the decision in the lead case would lay down the principles binding on High Courts dealing with similar disputes.

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