Court Directs State Authorities to Expedite Recovery of Monetary Compensation under RERA, Despite Property Vesting in State
In a significant ruling, the Himachal Pradesh High Court has mandated the continuation of recovery proceedings initiated under the Real Estate (Regulation and Development) Act, 2016 (RERA) for monetary compensation, despite the property in question being vested in the State Government. The case, titled "Pawan Wasant Borle v. Union of India," was presided over by Justice Jyotsna Rewal Dua and culminated in a decision dated February 25, 2026.
The petitioner, Pawan Wasant Borle, had initially secured a favorable order from the Himachal Pradesh Real Estate Regulatory Authority (RERA) on February 26, 2021. This order directed the return of significant sums of money, including Rs. 78,00,491/- to Borle, from respondents who were promoters of a real estate project. Despite this order reaching finality, the respondents failed to comply, prompting Borle to seek execution of the order through a recovery certificate issued on October 17, 2022, declaring the amount recoverable as arrears of land revenue.
However, the recovery proceedings encountered a roadblock when it was revealed that the property, initially part of the real estate dispute, had been ordered vested in the State Government following proceedings under the H.P. Tenancy and Land Reforms Act, 1972. This vesting had led the Tehsildar (Recovery), Solan, to halt further recovery actions.
In its judgment, the High Court clarified that the vesting of the property in the State does not negate the enforceability of the RERA order. The court emphasized that recovery proceedings should proceed to their logical conclusion using statutory alternatives provided under the RERA and H.P. Land Revenue Act. These alternatives include the issuance of a writ of demand, arrest and detention of the defaulter, and distress and sale of movable or immovable property.
Justice Jyotsna Rewal Dua underscored the need for adherence to the statutory processes for recovery, stating that the legislative intent and the creditor's rights must not be undermined. The court directed the District Collector, Solan, to ensure the expeditious conclusion of recovery proceedings as per the law.
This judgment reaffirms the enforceability of RERA orders and provides a roadmap for authorities to execute recovery proceedings effectively, even when properties involved in disputes are subsequently vested in the State.
Bottom Line:
Recovery proceedings for monetary compensation ordered by RERA cannot be halted merely because the property in question has vested in the State Government. Adequate safeguards under RERA and H.P. Land Revenue Act ensure enforceability of recovery orders through various statutory alternatives.
Statutory provision(s):
Real Estate (Regulation and Development) Act, 2016 - Section 40,
H.P. Land Revenue Act, 1954 - Section 103,
H.P. Tenancy and Land Reforms Act, 1972 - Section 118
Pawan Wasant Borle v. Union of India, (Himachal Pradesh) : Law Finder Doc id # 2859448
