Supreme Court : Supervising construction project is beyond the jurisdiction of the Court

Supreme Court : Supervising construction project is beyond the jurisdiction of the Court

The Supreme Court of India (SC) held that management of the construction projects from budget to permissions to final execution is beyond the jurisdiction of the Top Court and is not subject to judicial review

The Supreme Court (SC) has held that it must confine itself to its core competencies which consist in the adjudication of disputes amenable to the application of legal standardsleaving it open to the Petitioners (Shelly Lal & Ors.) to pursue the remedies available in law.

A writ petition was filed by the Petitioners seeking the Court to direct the Union of India & Ors. (respondents) to protect the interests and investments of customers/buyers in the larger public interest. The petition also sought directions for the revival of the project failing which the amounts invested by the petitioners be returned with interest at the rate of 18% per annum.

The Petitioners also prayed for an inquiry under the supervision of the SC. They requested the SC to intervene and look into the execution of the construction project.

The matter was listed before Justices Dr. DY Chandrachud, Indira Banerjee, and Sanjiv Khanna. The SC on 7 January 2021, held that management of the construction projects from budget to permissions to final execution is beyond the jurisdiction of the SC and is not subject to judicial review.

The SC stated that several provisions of law confer statutory rights on purchasers of real estate and invest them with remedies enforceable at law. These include the Consumer Protection Act 1986, the Real Estate (Regulation and Development) Act, 2016, and the Insolvency and Bankruptcy Code, 2016. The Court went on to hold that the Parliament has enacted a statutory regime to protect the rights of purchasers of real estate and created fora that are entrusted with decision-making authority.

The SC stated, "A decision of public authority which is entrusted with a public duty is amenable to judicial review. But it is quite another hypothesis to postulate that the decision making authority should be taken over by the court. The latter is impermissible.

It would be inappropriate for this Court to assume the jurisdiction to supervise the due completion of a construction project especially in facts such as those presented in the present case."

It was further observed that "The Court must confine itself to its core competencies which consist in the adjudication of disputes amenable to the application of legal standards."

The SC disposed of the writ petition of the petitioner. The SC further stated, "This would be beyond the remit and competence of the Court under Article 32 of the Constitution of India. Managing a construction project is not within the jurisdiction of the Court."