On based upon an agreement with Developer, a Contractor/ Third Party cannot claim for carrying out the remaining development works of the lapsed Real Estate project under RERA – Nestoya Homes Pvt. Ltd. Vs. Orchids Elite Developers Pvt. Ltd. and Anr. – Karnataka High Court
Hon’ble Karnataka High Court held that:
(i) Any private contract between the Developer and the third party, petitioner in the case at hand, would not mean that the rigour of the statute should be halted by the Authority.
(ii) In the private dispute between the petitioner and the Developer, the home buyers are caught in a cross fire, as they neither have home nor their money.
(iii) A private dispute between the petitioner and the Developer would not in any way impede the flow of rigour of the statute. If the petitioner has spent crores on the project, it is for it to deal with the Developer and not cause a stumbling block to the construction by the home buyers/Society.
(iv) As merely because the project is named Hanging Gardens, the fate of those home buyers cannot be left hanging in thin air. But, the rejection of the writ petition will not come in the way of the petitioner and the Developer working out their remedies before any fora in a manner known to law.