Appeal No.76 of 2019
The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal No.76 of 2019 on 26 August 2020, concerning a dispute between M/s. Casa Grande Civil Engineerig Pvt. Ltd. and two homebuyers in the Casa Grande Bellismo project at Pazhavanthangal, Alandur, Chennai. The Tribunal found that the booking acknowledgement, advertisement, payment and stated terms could amount to a concluded contract even without a later construction agreement, but the supplied text does not contain the final operative result of the appeal.
What the case concerns
Appeal No.76 of 2019 was filed by M/s. Casa Grande Civil Engineerig Pvt. Ltd., the promoter, against an Adjudicating Officer's order dated 31 July 2019. The respondents were homebuyers who had booked a flat in the Casa Grande Bellismo project at Pazhavanthangal, Alandur, Chennai.
The parties agreed on a stated consideration of Rs.98,47,096. The homebuyers initially paid Rs.3 lakh under a booking acknowledgement dated 17 August 2016. The promoter later informed them that the proposed flat area would be reduced from 1,277 square feet to 1,229 square feet, with a reduction of Rs.3,20,000 in the sale consideration.
Main dispute
The homebuyers objected to the changed area, the project's timing and the promoter's position on GST. They also alleged that the promoter collected more than 10 per cent of the flat cost before a written agreement for sale was signed.
The promoter argued that:
- The newspaper advertisement was only a formal offer.
- No binding construction agreement had been signed.
- The homebuyers had failed to sign the agreement and make further payments.
- The homebuyers therefore could not rely on the Real Estate Regulation and Development Act 2016.
Tribunal's reasoning in the supplied text
The Tamil Nadu Real Estate Appellate Tribunal examined the booking acknowledgement and noted that it contained five terms and conditions. These covered the flat size, payment of the balance amount, the promised project launch, interest for failure to launch, the flat price and refund of the booking advance.
The Tribunal reasoned that the promoter had itself relied on those terms for matters including measurement, pricing and refund. It therefore rejected the argument that the booking acknowledgement was merely a receipt with no binding effect.
The Tribunal also stated that the advertisement was an offer accepted by the homebuyers through payment, creating a concluded contract. According to the Tribunal, the absence of a later written construction agreement did not prevent the homebuyers from invoking the Real Estate Regulation and Development Act 2016.
Earlier relief and missing final outcome
The Adjudicating Officer had directed refund of Rs.48,22,468 with interest at 10 per cent per annum, compensation described as 9 per cent interest, and Rs.25,000 as litigation cost. The supplied text ends during the Tribunal's discussion and does not show whether Appeal No.76 of 2019 was ultimately allowed, dismissed or otherwise disposed of.
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Common questions
Can a homebuyer approach the real estate authority without signing a construction agreement?
In Appeal No.76 of 2019, the Tamil Nadu Real Estate Appellate Tribunal rejected the promoter's argument that the absence of a written construction agreement prevented action under the Real Estate Regulation and Development Act 2016. It treated the advertisement, payment and booking acknowledgement containing detailed terms as capable of forming a concluded contract.
Why did the homebuyers refuse to sign the construction agreement?
The homebuyers objected to the reduction of the proposed flat area from 1,277 square feet to 1,229 square feet. They also raised issues about the project launch and GST.
What had the Adjudicating Officer ordered the promoter to pay?
The Adjudicating Officer directed refund of Rs.48,22,468 with interest at 10 per cent per annum, compensation described as 9 per cent interest, and Rs.25,000 towards litigation cost.
Did the Tamil Nadu Real Estate Appellate Tribunal dismiss the promoter's appeal?
The supplied text does not include the final operative result. It records the Tribunal's rejection of the promoter's no contract argument, but ends before stating whether the appeal was allowed or dismissed.
