Rera or consumer commission: Why forum should be chosen with care

Avoid duplicate claims, and enforce an existing order in the same forum

Homebuyers in delayed or stalled projects can seek relief under the Real Estate (Regulation and Development) Act, 2016 (Rera), and the Consumer Protection Act. A recent National Consumer Disputes Redressal Commission (NCDRC) ruling shows why their choice matters. The NCDRC rejected a complaint seeking a refund already granted by Karnataka Rera in Nikhil Mehta & Anr vs Gardenview Abode Pvt Ltd  & Ors, bringing the doctrine of election into focus. 

Implications of ruling 

On March 5, 2026, the Supreme Court held in Kabra and Associates & Ors vs Rekha Rajkumar Hemdev & Ors that buyers who pursue Rera cannot later approach a consumer commission for the same cause.

“The ruling, based on the ‘doctrine of election’, reinforces that buyers cannot pursue parallel remedies or switch forums after choosing one for the same dispute. The recent NCDRC ruling follows the same principle,” says Adnan Siddiqui, partner, King Stubb & Kasiva, Advocates and Attorneys. 

Doctrine of election: Meaning 

A party that pursues one remedy generally cannot switch later to the other. “Homebuyers cannot use both forums simultaneously or switch forums simply because the first remedy is slower or less satisfactory. Once a Rera order attains finality, the same dispute generally cannot be reopened before another forum,” says Siddiqui. 

In Imperia Structures Ltd vs Anil Patni (2020), the Supreme Court held that Rera does not bar consumer fora: Section 79 bars only civil courts, while Section 88 provides that Rera remedies are in addition to other legal remedies. However, the Court reaffirmed the doctrine of election in Ireo Grace Realtech vs Abhishek Khanna (2021) and Kabra and Associates & Ors vs Rekha Rajkumar Hemdev & Ors. 

Once Rera orders a refund with interest, a buyer may struggle to claim additional compensation from a consumer commission for the same default, even if the compensation is for mental agony, litigation costs, rental expenses, or other losses. 

“A buyer should avoid duplicating the same claim before both forums. Switching, or pursuing parallel proceedings, can lead to objections based on election of remedies and multiplicity of litigation,” says Piyush Kumar Ray, associate partner, Aquilaw.

How to choose a forum? 

Match the forum to the nature of the grievance and the relief sought. Rera may be suitable for cases of delayed possession, refunds, project completion and statutory interest. Consumer commissions are better suited for issues like deficient service, unfair practices and consequential damages. 

“Buyers should also consider limitation, enforcement, cost and likely duration. Consumer complaints generally have a two-year limitation period, while Rera does not prescribe a specific limitation period under Section 31,” says Ray. 

Assess the relief sought and practical enforceability before choosing a forum, as switching later may not be possible.

 

If developer defaults on refund 

If a developer ignores a Rera refund order, pursue its enforcement instead of restarting the dispute in another forum. 

“Section 40 of Rera provides an enforcement mechanism. The Supreme Court’s Newtech Promoters judgement clarified that refund and interest can be recovered as arrears of land revenue. The buyer can seek execution of the Rera order and issuance of a recovery certificate for action by the revenue authorities,” says Shankey Agrawal, partner, BMR Legal. 

If enforcement fails, supervisory or constitutional remedies may be considered. Difficulty in enforcement does not entitle a buyer to seek the same refund before a consumer commission. 

Can buyers change  the remedy sought?

A buyer may switch from seeking possession to seeking refund if the former becomes unrealistic. Section 18 allows an allottee to exit a delayed project and seek a refund with interest. Changing relief in an ongoing case differs from switching forums, which can trigger the doctrine of election. “If a project stalls or the developer’s financial position deteriorates, place the new developments before the existing forum and seek appropriate relief rather than restart the same dispute elsewhere,” says Agrawal.

 

Common mistakes to avoid

 •    Pursuing same relief before multiple forums can trigger doctrine of election

•    Seeking possession in one forum and refund in another can weaken case

•    Enforce a favourable order rather than filing a fresh case for same relief

•    Insolvency proceedings should not be used as a debt-recovery tool

•    Do not hide previous complaints and orders

                                                                                                                                      Source: BMR Legal

 

---

 

The writer is a Delhi-based independent journalist