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In an important ruling clarifying the limits of appellate jurisdiction under the Real Estate (Regulation and Development) Act, 2016, the High Court of Jammu & Kashmir and Ladakh has set aside a status quo restraint order imposed on Royal Omkar Nests Pvt Ltd, holding that once an appeal is found not maintainable, no interim directions can legally survive.

The judgment was delivered by Justice Rahul Bharti in a writ petition filed by Royal Omkar Nests Private Limited and another against Sandeep Kumar and others.

Background of the Dispute

The petitioners are the promothttps://saptakala.com/booksers of a residential real estate project titled “Royal Nest Sapphire”, situated at Dilli Kunjwani Bye Pass, Jammu.

As recorded by the High Court, 14 flat-holders filed a complaint before the Jammu & Kashmir Real Estate Regulatory Authority (JKRERA) under the provisions of the RERA Act, 2016. The complaint was registered as File No. JKRERA/2025/01 dated 31 January 2025.

JKRERA’s Order Dated 21 July 2025

JKRERA disposed of the complaint on 21.07.2025, directing the promoter to:

Communicate defects in writing
Rectify the defects within 30 days
Allow liberty to the allottees to seek relief or compensation if rectification was not carried out

No coercive or prohibitory directions were issued at that stage.

Appeal Before J&K Special Tribunal

Aggrieved by the JKRERA order, the allottees filed an appeal before the J&K Special Tribunal, which had been designated as the temporary RERA appellate forum by the Union Territory Government under SO 637 dated 28.12.2023, pending constitution of a regular RERA Appellate Tribunal.

The appeal was registered as Appeal No. STJ/214/2025 and instituted on 18.09.2025.

Status Quo Order by Single-Member Bench

On 22.09.2025, the single-member bench (Chairperson) of the J&K Special Tribunal passed an interim order directing status quo to be maintained with respect to:

The real estate project
Common areas
Restraint on conversion of common areas into commercial space
Restraint on alienation or operation of such areas

Objection on Tribunal Composition Under Section 43(3)

The promoter objected to the maintainability of the appeal, contending that Section 43(3) of the RERA Act mandates that an Appellate Tribunal must consist of at least two members, including:

One Judicial Member, and
One Administrative or Technical Member

It was argued that a single-member bench lacked jurisdiction to hear or pass orders in a RERA appeal.

Impugned Order Dated 04 December 2025

In the impugned order dated 04.12.2025, the Chairperson of the Special Tribunal accepted the objection and held that the appeal was not maintainable due to improper bench composition. Liberty was granted to the appellants to file a fresh appeal before a duly constituted bench.

However, despite holding the appeal to be incompetent, the Chairperson directed that the status quo order on common areas would continue, warning of “adverse consequences” in case of violation.

High Court’s Findings and Ruling

Hearing the writ petition under Articles 226 and 227 of the Constitution of India, the High Court held that:

Once the Chairperson concluded that the appeal was not maintainable,
There was no occasion or jurisdiction to issue further directions,
Continuation of the status quo order was legally untenable and nugatory

Justice Rahul Bharti observed that an authority which declares itself incompetent cannot simultaneously exercise interim powers.

Accordingly, the High Court:

Quashed the status quo restraint relating to common areas
Left the remainder of the impugned order intact
Disposed of the writ petition

Legal Significance of the Judgment

This decision reinforces a fundamental principle of administrative and appellate law: jurisdiction is the foundation of all judicial and quasi-judicial orders. The ruling provides clarity on:

Proper constitution of RERA appellate forums
Limits of interim powers when maintainability fails
Protection of promoters from legally unsustainable restraints

The judgment also serves as a cautionary precedent for tribunals functioning as interim appellate bodies under RERA, particularly in Union Territories awaiting permanent tribunal constitution.

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