The Supreme Court on Wednesday cautioned against a growing number of petitions by homebuyers of stalled real estate projects.

A Bench of Chief Justice of India (CJI) Surya Kant, Justice Joymalya Bagchi and Justice V Mohana said that the top court cannot become a forum for every troubled housing project in India and bringing every such case before the top court could delay the hearing in a batch of pending cases involving legal issues surrounding irregularities by developers and financial institutions.

“We never thought that every day people would keep filing IAs, MAs and contempt petitions, and we would be stuck without deciding the main case. Better you wait,” CJI Kant told counsel for the petitioners.

The Court said that the case pending before it was ready for final disposal and homebuyers with similar grievances should wait for the Supreme Court's decision on the legal aspects.

The decision of the top court could then guide High Courts in deciding individual grievances, the bench added.

“After this Court takes a view, the High Courts cannot take a different view,” CJI Kant remarked.

The Bench was hearing transfer petitions concerning stalled housing projects. The counsel argued that the projects had been abandoned and that some High Courts had already delivered judgments on related disputes, prompting the parties to approach the Supreme Court.

However, the Court indicated that it would not entertain the transfer petitions at this stage, given that its decision in the lead case would lay down principles for other courts dealing with similar disputes.

“We are not inclined to entertain these transfer petitions because the main case, the lead case, is ripe for final disposal. Whatever principles are laid down by this Court, the High Courts will decide the pending cases accordingly,” said CJI Kant.

During the hearing, counsel submitted that the projects in question were already before the court-appointed amicus curiae, who was examining complaints relating to stalled housing projects. The counsel also referred to action being taken by the Central Bureau of Investigation (CBI).

Justice Bagchi, however, said the existing proceedings could not be expanded to cover every stalled project in the country.

“It does not mean that every housing project in India has to be taken up by the amicus. The amicus is examining projects concerning a group of developer companies of which we have taken cognisance. Others will have to wait until we deliver a verdict. We are not going to burden the amicus as well as the Court with multiple litigations of a similar nature,” he said.

CJI Kant noted that the apex court was seeing several new petitions being filed every day.

“Every day we are seeing four or five people filing petitions. It has become a new channel now,” he observed.

When counsel argued that the projects were abandoned and that the High Courts were waiting for the Supreme Court to decide the issues, CJI Kant reiterated that the parties would have to await the outcome of the lead case or pursue their remedies before the High Courts.

“Now you come here, and another 200 people from the same project will come. A decision will never be obtained. There will be no end. You have to wait or approach the respective High Courts,” said CJI Kant.

The Court also indicated that the petitioners could withdraw their transfer petitions and approach the Supreme Court or the relevant High Court at an appropriate stage after the lead case was decided.

When counsel suggested that the petitions be listed again on November 26, the Court maintained that it was not inclined to entertain the transfer petitions at this stage.

CJI Kant reiterated that a ruling in the lead case would bind the High Courts on the principles laid down by the Supreme Court.

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