Appeal No. 65 of 2019, M/s. SPR Construction Private Ltd. v. Mr. Pawan Kumar Gupta
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Island), in Appeal No. 65 of 2019 dated 23 January 2020, recorded a compromise between M/s. SPR Construction Private Limited and Mr. Pawan Kumar Gupta concerning the cancellation of an apartment booking in SPR High Living, SPR City, Perambur, Chennai. The deposited booking advance of Rs. 3,00,000 was to be returned to the buyer by court cheque, the buyer waived the other claims ordered by the Adjudicating Officer, and the appeal was dismissed as settled.
What the appeal concerns
Appeal No. 65 of 2019 concerns an apartment booked by Mr. Pawan Kumar Gupta with M/s. SPR Construction Private Limited in the SPR High Living project at SPR City, Perambur, Chennai 600 012. The buyer booked the apartment on 24 March 2019 and paid a booking advance of Rs. 3,00,000.
The buyer later could not raise funds or sell his ancestral property. He requested cancellation of the booking and refund of the advance on 20 April 2019. The developer took the position that the booking advance was forfeited and that no refund or compensation was payable.
Deposit and compromise
The Tamil Nadu Real Estate Appellate Tribunal, while hearing Waiver Petition No. 74 of 2019 on 21 November 2019, directed M/s. SPR Construction Private Limited to deposit Rs. 3,00,000 on or before 2 December 2019. The direction stated that the appeal would be dismissed for non-payment if the deposit was not made.
The developer complied with the deposit direction on 28 November 2019. At the hearing on 23 January 2020, both parties appeared and agreed to a compromise in open court. They also filed a compromise memo dated 23 January 2020.
Key terms recorded by the Tribunal were:
- The entire amount of Rs. 3,00,000 had been deposited in court.
- The deposited amount would be returned directly by the court to Mr. Pawan Kumar Gupta by cheque.
- Mr. Pawan Kumar Gupta waived the other claims ordered by the Adjudicating Officer.
- Both parties endorsed their agreement to the compromise.
Result and who is affected
Appeal No. 65 of 2019 was dismissed as settled after the Tamil Nadu Real Estate Appellate Tribunal recorded the parties' agreement and compromise memo. The outcome directly affects M/s. SPR Construction Private Limited and Mr. Pawan Kumar Gupta in relation to the cancelled apartment booking and the deposited advance.
The Tribunal pronounced the decision in open court on 23 January 2020. The decision records a settlement rather than a ruling on whether the developer's original forfeiture position was legally valid.
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Common questions
Will the buyer receive the Rs. 3,00,000 booking advance?
Yes. The developer deposited Rs. 3,00,000 in court, and the compromise provided that the court would return the entire amount directly to the buyer by cheque.
Why did the buyer cancel the apartment booking?
The buyer stated that he could not raise funds or sell his ancestral property. He therefore requested cancellation and refund of the booking advance.
Did the buyer retain any other claims against the developer?
No. As part of the compromise, the buyer waived the other claims ordered by the Adjudicating Officer.
Did the Tribunal decide whether forfeiting the booking advance was lawful?
No decision on that issue is stated. The Tamil Nadu Real Estate Appellate Tribunal recorded the compromise and dismissed Appeal No. 65 of 2019 as settled.
