case law

M.A.No.121/2020 in Un-numbered Appeal No. of 2020

The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry, and the Andaman and Nicobar Islands, issued the order in M.A. No. 121/2020 on 9 December 2020. It allowed M/s. Sare Realty Projects Private Limited to pursue its application despite a delay of 304 days, provided the company deposited Rs.10,000 in the Tamil Nadu Chief Minister's Relief Fund for Corona by 15 December 2020.

Category
Tribunal and court orders
Effective
1 January 2020
Pages
4
Status
In force
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What the case concerns

M.A. No. 121/2020 arose from an unnumbered appeal filed by M/s. Sare Realty Projects Private Limited, formerly known as SARE Jubilee Kolathur Private Limited, against Mr. P.B. Ajith Kumar. The company asked the Tamil Nadu Real Estate Appellate Tribunal to excuse a delay of 304 days in filing the appeal.

The ruling deals only with whether that filing delay should be excused. It records that the underlying dispute involved an order made in favour of Mr. P.B. Ajith Kumar by the Adjudicating Officer on 23 September 2019.

Reasons given for the delay

M/s. Sare Realty Projects Private Limited gave the following reasons:

  • Settlement discussions and email communications continued between the parties.
  • The company later decided to appeal when the settlement did not progress.
  • Lockdown, office and court closures, travel restrictions and the pass requirement during the coronavirus pandemic affected the filing process.
  • The appeal was filed before the Tribunal on 21 September 2020.

Mr. P.B. Ajith Kumar opposed the application. He stated that he had not accepted the proposed compromise terms, had preserved his rights under the earlier order and believed the appeal had been filed with an improper intention.

Tribunal's findings

The Tamil Nadu Real Estate Appellate Tribunal found that both parties had made genuine efforts to settle the dispute, including through communications after enforcement action and a legal notice. The settlement faced a legal obstacle concerning the property's title and encumbrance.

The Tribunal also recorded that the company had expressed financial difficulty in completing the project, while the respondent required the title to be cleared of encumbrance. It concluded that the parties should be permitted to pursue their grievances through the appeal process.

Result and condition

The Tamil Nadu Real Estate Appellate Tribunal allowed the application to excuse the 304 day delay on these terms:

  • M/s. Sare Realty Projects Private Limited had to deposit Rs.10,000 in the Tamil Nadu Chief Minister's Relief Fund for Corona.
  • The deposit had to be made on or before 15 December 2020.
  • If the deposit was not made by that date, the delay application would stand dismissed.
  • The matter was directed to be called on 16 December 2020.

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Common questions

Did the Tribunal excuse the company's 304 day delay?

Yes. The Tamil Nadu Real Estate Appellate Tribunal allowed the delay application, subject to payment of Rs.10,000 to the Tamil Nadu Chief Minister's Relief Fund for Corona.

What would happen if the company did not pay by 15 December 2020?

The application to excuse the delay would stand dismissed.

Did the ruling decide the underlying property dispute?

No. The ruling decided whether the delayed appeal filing should be accepted. It recorded that the property dispute involved title and encumbrance issues that the parties wanted to pursue through the appeal.

Why did the Tribunal accept the explanation for the delay?

The Tribunal found that both parties had seriously attempted an amicable settlement. It also considered the lockdown, office and court closures, travel restrictions and other pandemic related filing difficulties described by the company.