Jurisdiction and Bar of Civil Courts under Section 79 of RERA and the Civil Procedure Code (CPC)

Introduction

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to bring transparency, accountability, and efficiency to the real estate sector in India. One of the important aspects of this Act is the establishment of a specialized mechanism to handle disputes related to real estate projects. In this context, Section 79 of RERA plays a crucial role by barring the jurisdiction of civil courts in certain matters. At the same time, the Code of Civil Procedure, 1908 (CPC) provides the general rules for civil jurisdiction through Sections 9 to 20.

Understanding the interplay between these legal provisions is essential for determining the correct forum for dispute resolution.

Section 79 of RERA – Bar on Civil Courts

Section 79 of the Real Estate (Regulation and Development) Act, 2016, plays a pivotal role in defining the jurisdictional boundaries between civil courts and the authorities established under RERA. The provision is designed to streamline the process of dispute resolution in the real estate sector by removing the involvement of civil courts in matters that are specifically entrusted to RERA authorities.

Section 79 read as:

“No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered by or under this Act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.”

Purpose and Legislative Intent:

The core purpose of Section 79 is to:

• Avoid multiplicity of proceedings by ensuring that real estate disputes are adjudicated only by specialized authorities under RERA.
• Enhance efficiency and reduce delays by moving disputes out of the overburdened civil courts.
• Provide a focused, industry-specific mechanism for grievances arising in real estate projects, including issues such as delay in possession, deviation from sanctioned plans, non-registration of projects, and unfair terms in agreements.

The legislative intent behind this section is to provide a fast, transparent, and accountable process tailored to the unique needs of the real estate sector.

Scope of the Bar:

Section 79 bars civil courts from entertaining:

• Suits related to registered real estate projects.
• Proceedings for compensation, interest, or refund that arise out of violations of RERA provisions.
• Any matter that falls within the scope of powers conferred on the RERA Authority, Adjudicating Officer, or the Appellate Tribunal.

This bar is applicable regardless of the monetary value involved or the geographical location of the project, as long as the subject matter squarely falls under the jurisdiction of RERA authorities.

Who Has Jurisdiction Instead?

Section 79 transfers the authority to resolve such disputes to:

1. Real Estate Regulatory Authority – for violations of obligations under the Act or regulations.
2. Adjudicating Officer – for claims related to compensation or interest.
3. Appellate Tribunal – for appeals against orders of the Authority or Adjudicating Officer.

Thus, RERA authorities act as the first line of judicial intervention for real estate-related grievances.

Effect of the Bar:

The impact of Section 79 is twofold:

1. Civil Courts are restricted from hearing cases that fall under RERA’s domain.
2. Injunctions or stay orders cannot be issued by civil courts to interfere with proceedings initiated under RERA.

This ensures that the RERA mechanisms are not undermined by parallel civil litigation or judicial interference.

CPC Provisions on Jurisdiction (Sections 9 to 20)

The Code of Civil Procedure, 1908 (CPC) lays down the procedural framework for all civil litigation in India. It is the primary statute governing the functioning of civil courts, including the determination of their jurisdiction. Sections 9 to 20 of the CPC deal specifically with the question of which civil court has the authority to hear a particular civil matter, based on the nature, subject, location, and value of the dispute.

Understanding these provisions is crucial, especially when they interact with special statutes like the Real Estate (Regulation and Development) Act, 2016 (RERA), which expressly bars civil court jurisdiction in certain matters.

Section 9 – Jurisdiction of Civil Courts

Section 9 read as:

“The courts shall (subject to the provisions herein contained) have jurisdiction to try all suits of a civil nature excepting suits of which their cognizance is either expressly or impliedly barred.”

This provision implies that:

• Civil courts have wide and inherent jurisdiction to entertain all civil suits unless such jurisdiction is taken away by a specific law.
• The jurisdiction is inclusive, and a court may only refuse to entertain a suit when there is a clear and specific legislative bar.

Thus, in the absence of such a bar, every person has the right to approach the civil court for the enforcement of their civil rights.

However, when another special law (like RERA) confers jurisdiction on a special authority and expressly bars civil court jurisdiction (as done by Section 79 of RERA), then Section 9 of CPC must yield to that specific enactment.

Sections 15 to 20 – Determining the Appropriate Civil Court

Once it is established that a matter is of a civil nature and not barred, guide litigants on which particular civil court to approach. These sections focus on territorial and pecuniary jurisdiction.

Section 15 – Suit to be instituted in the lowest grade competent court

• Suits must be filed in the lowest court competent to try it, based on the monetary value and subject matter.

Sections 16 to 18 – Territorial jurisdiction based on subject matter

• These sections cover immovable property-related disputes, like possession, title, or partition. The court within whose jurisdiction the property is situated is the appropriate forum.

Section 19 – Suits for compensation for wrongs to person or movables

• The suit can be filed where the wrong was committed or where the defendant resides.

Section 20 – Residual provision

• This section covers suits not specifically dealt with earlier and states that suits can be instituted where:
• The defendant resides or carries on business; or
• The cause of action, wholly or partly, arises.

These provisions ensure that parties do not face undue hardship by being forced to litigate in inconvenient forums.

Therefore, while civil courts are the default forums for civil disputes, they lose jurisdiction when a matter is expressly barred, such as in cases covered by RERA under Section 79.

Comparison of Forums for Real Estate Dispute Resolution

Forum	Jurisdiction	Type of Disputes Handled	Applicable Law	Key Limitations
RERA Authority	Exclusive jurisdiction over matters covered under the RERA Act	- Project delays - Non-registration - Violation of agreement - Refund/compensation claims	Real Estate (Regulation and Development) Act, 2016	Civil courts are barred under Section 79 for covered matters
Consumer Commissions	Concurrent jurisdiction with RERA in cases of service deficiency	- Deficiency in service - Unfair trade practices - Mental agony and harassment	Consumer Protection Act, 2019	Cannot grant regulatory reliefs like registration cancellations
Civil Courts	General jurisdiction for civil matters not expressly barred	- Title disputes - Succession or partition - Complex contractual issues	Code of Civil Procedure, 1908	No jurisdiction over matters covered under RERA due to Section 79 bar
Criminal Courts	Jurisdiction over criminal offences	- Fraud - Cheating - Criminal breach of trust - Forgery	Indian Penal Code, 1860 & CrPC	Cannot grant civil remedies like compensation or possession

 

Key Considerations for Forum Selection

1. Nature of the Dispute
   Check whether the dispute falls under the RERA’s scope — such as delay in possession, non-registration, or unfair trade practices by a promoter.
2. Relief Sought
   If the remedy sought is compensation, interest, or refund, RERA has a dedicated mechanism to handle such claims.
3. Jurisdictional Objection
   If a party wrongly approaches a civil court, the other side can raise a preliminary objection regarding jurisdiction under Section 79.
4. Maintainability Check
   Courts also have the power to reject a plaint if it is barred by any law, including Section 79 of RERA.

Conclusion

The enactment of RERA has brought about a major shift in the way real estate disputes are resolved in India. Section 79 clearly bars civil courts from entertaining disputes that fall within the jurisdiction of RERA authorities. Meanwhile, the CPC lays down the general jurisdictional rules, but its application is limited when special statutes like RERA impose express restrictions.

Legal practitioners must carefully examine the nature of the dispute and the relief claimed to determine the proper forum. Filing a suit in the wrong forum may lead to delay, dismissal, or unnecessary costs. A well-informed choice ensures speedy justice and compliance with procedural law.

 "Knowledge Is Power, And Service Is a Blessing."