Appeal No. 64 of 2019, Order dated 28.02.2020
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Island) issued Appeal No. 64 of 2019 on 28 February 2020, considering Dominic Savio.S and Clotine Marie. D's challenge to the dismissal of their claim for interest, compensation and costs against M/s. Phoenix Serene Spaces Pvt. Ltd. The supplied text records the transaction, arguments and questions considered by the Tribunal, but does not contain the final decision on the appeal.
What the appeal concerns
Appeal No. 64 of 2019 before the Tamil Nadu Real Estate Appellate Tribunal concerns purchasers who cancelled a villa allotment after alleging delayed delivery. The purchasers sought interest, compensation and costs after receiving a refund of the principal amount. The Adjudicating Officer dismissed their complaint on 30 July 2019, leading to the appeal.
The dispute followed an earlier flat booking in the developer's Village Township project. In March 2015, the purchasers opted to transfer the allotment to a villa. A sale and construction agreement was entered into on 26 February 2016 for a total consideration of Rs.85,67,283.
Payments, delivery and refund
The Tribunal recorded the following admitted facts:
- The purchasers and their bank paid a total of Rs.78,60,554.
- The villa was to be completed within 18 months from the agreement date, with a further grace period of six months.
- The delivery date was 25 August 2017, and the grace period ended on 25 February 2018.
- The developer agreed to cancel the allotment on 5 May 2018.
- The principal amount was refunded in three instalments by 31 May 2018.
Arguments made by the purchasers
The purchasers said they repeatedly requested cancellation and refund. They argued that the developer used its stronger bargaining position and placed them under mental pressure, causing them to agree to give up claims for interest and compensation before receiving the principal refund.
They also argued that the developer failed to complete and hand over the villa within the agreed period and did not refund the money within the period required by the agreement.
Developer's response
M/s. Phoenix Serene Spaces Pvt. Ltd. argued that the purchasers sought cancellation for personal reasons and had agreed that no further claims would remain after refund. The developer also relied on agreement terms concerning delay damages and deduction of liquidated damages when a purchaser cancels.
Questions considered and practical effect
The Tamil Nadu Real Estate Appellate Tribunal identified whether the purchasers were subjected to stress, duress or undue influence, whether their later claim was an afterthought, and whether the appeal should be allowed.
The supplied text ends during the Tribunal's review of communications between the parties. It does not show the Tribunal's final findings or whether any interest or compensation was awarded. Buyers should therefore not treat the excerpt as establishing a final legal result.
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Common questions
Did the purchasers receive their booking money back?
Yes. The principal amount was refunded in three instalments by 31 May 2018, but the purchasers continued to claim interest, compensation and costs.
What was the agreed deadline for handing over the villa?
The Tribunal recorded that delivery was due by 25 August 2017 and that the six month grace period ended on 25 February 2018.
Why did the purchasers say their waiver of interest should not bind them?
They claimed the developer used its dominant bargaining position and subjected them to mental pressure and undue influence, forcing them to seek only the principal refund.
Did the Tribunal allow the appeal or award compensation?
The supplied text does not include the final decision. It ends while the Tribunal is analysing communications between the purchasers and the developer.
