Noida: The Lucknow bench of Allahabad High Court has dismissed four appeals filed by Gaursons Hi-Tech Infrastructure over shop-buyer disputes at its Gaur City Centre project in Greater Noida West, refusing to interfere with orders passed in the favour of buyers by UP-Rera and Real Estate Appellate Tribunal (REAT).
The court declined to condone delays in approaching it, holding that the developer failed to show reasonable diligence through the litigation and that the reasons offered were "bald, unsupported and unsatisfactory", in some instances reflecting a "careless and reckless" approach. The decision now clears the way for execution of Rera orders.
In a set of judgments delivered on Jan 21, Justice Prashant Kumar held that limitation cannot be relaxed as a matter of generosity and that courts must separate a genuine explanation from a mere excuse. The court relied on multiple Supreme Court rulings to underline that repeated, unexplained delays and laches cannot be overlooked.
The four cases are the result of complaints filed by allottees who booked commercial units at Gaur City Centre in Sector 4 of Greater Noida West. Under these plans, buyers paid 30-50% of the total consideration upfront, with the bulk amount linked to the offer of possession.
When possession was not offered within the promised timelines, the allottees approached UP-Rera between 2021 and 2022. Rera conducted spot inspections and found construction at the project incomplete. It then asked the developer to complete construction in line with the agreements, obtain occupancy certificates, hand over possession, execute sale deeds, and pay interest for delayed possession at prescribed rates, subject to adjustment of any buyer overdues.
Gaursons challenged the Rera directions before REAT in Lucknow. However, each appeal was dismissed on the ground of delay and laches, with delays ranging from 79 to 224 days. The tribunal passed separate dismissal orders during Oct-Nov 2024.
REAT also recorded non-compliance with the mandatory pre-deposit requirement under the Rera Act. It rejected the developer's explanation that the delay was caused by difficulty in retrieving electronic records due to malware, noting that relevant documents were available on the Rera web portal.
The developer then moved High Court, again with the delayed filings. Dismissing all four appeals as barred by limitation, the court said the pattern of delay showed a lack of diligence that could not be excused. "...the appellant failed to prove that he was reasonably diligent in pursuing the matter not only before this Court but also before the UP Real Estate Appellate Tribunal, Lucknow," the court noted, adding that such conduct disentitles a litigant from discretionary relief.
With HC refusing to intervene, the dismissal effectively removes the appellate roadblock and allows the buyers to pursue execution of the Rera orders.A Gaursons spokesperson said the company had challenged the REAT order primarily on the interpretation of "deemed completion". "The primary issue concerns the interpretation of ‘deemed completion', which, as consistently submitted by the company, stands fully satisfied in the present project. The applicable bylaws expressly recognise deemed completion upon the expiry of three months, provided the statutory requirements are fulfilled. This position was also acknowledged by UP-Rera through its notification dated Sept 16, 2019, which recognises the concept of a deemed occupancy/completion certificate. In the present case, all 4 mandatory no objection certificates were duly obtained and remained valid during the relevant period," the spokesperson said.
On the delays, the spokesperson added: "The company further submitted that the delay in filing occurred solely due to an unforeseen technical issue in retrieving electronic data from the relevant systems, which temporarily hindered the compilation of documents. The delay was entirely unintentional and does not reflect any lack of diligence or improper conduct on the part of the company."
Aditya Dev is an assistant editor at The Times of India. He repor...
Read MoreAditya Dev is an assistant editor at The Times of India. He reports on all three industrial development authorities — Noida Authority, Greater Noida Authority, and Yamuna Expressway Authority — focusing on real estate, infrastructure, and government policies that impact industry and commerce. He also covers court cases involving developers and industries in the NCLT, Allahabad High Court, and the Supreme Court. With over 17 years of experience in journalism across various cities, he has reported on a wide range of beats, including health, education, crime, courts, and the environment. He is driven by curiosity, on-ground reporting, and a commitment to fact-based, impactful journalism.
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