Case law, Tamil Nadu land law
Common Order in Appeal Nos. 1 to 7 and 25 to 27 of 2020
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued the Common Order dated 20 January 2021 in Appeal Nos. 1 to 7 and 25 to 27 of 2020. It permitted M/s. Green Peace Constructions Private Limited to withdraw all ten appeals, dismissed them as withdrawn, ordered the appellant to pay each respondent costs of Rs. 1,000 in each appeal, and closed the connected Miscellaneous Applications.
What the case concerned
The Common Order dated 20 January 2021 in Appeal Nos. 1 to 7 and 25 to 27 of 2020 concerns disputes between M/s. Green Peace Constructions Private Limited and flat buyers who had entered into a joint development agreement and construction or reconstruction arrangements.
The buyers complained to the Real Estate Regulatory Authority about delay in completing and handing over the flats, alleged diversion of project funds, unpaid penalties and electricity dues. They sought termination of the agreements, return of money allegedly withdrawn from the special account, restoration of funds to that account, payment of electricity dues and permission for the flat owners association to complete the project.
Earlier direction challenged in the appeals
The Real Estate Regulatory Authority had directed M/s. Green Peace Constructions Private Limited to remit the balance project funds available with it. The Authority also permitted and directed the Block Ninety Flat Owners Association, K.K. Nagar, to carry out the remaining construction, and restrained the developer from undertaking the remaining work.
M/s. Green Peace Constructions Private Limited challenged those directions through Appeal Nos. 1 to 7 and 25 to 27 of 2020 before the Tamil Nadu Real Estate Appellate Tribunal.
Tribunal's decision
The Tamil Nadu Real Estate Appellate Tribunal recorded that the appellant agreed to withdraw all the appeals unconditionally and without seeking liberty to bring them again. The respondents did not object to withdrawal but requested costs.
The Tribunal ordered that:
- Appeal Nos. 1 to 7 and 25 to 27 of 2020 were permitted to be withdrawn.
- All ten appeals were dismissed as withdrawn.
- M/s. Green Peace Constructions Private Limited had to pay Rs. 1,000 to the respondents in each appeal.
- The appellant's advocate undertook that the costs would be paid on or before 30 January 2021.
- The connected Miscellaneous Applications were closed.
Who is affected
The Common Order directly affects M/s. Green Peace Constructions Private Limited, the named respondents in the ten appeals and the Block Ninety Flat Owners Association, K.K. Nagar. Property buyers or professionals reviewing this project should note that the appellate proceedings ended through unconditional withdrawal, rather than through a decision on the merits of the allegations or the earlier directions.
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Common questions
Did the Tamil Nadu Real Estate Appellate Tribunal decide whether the buyers' allegations were correct?
No. Appeal Nos. 1 to 7 and 25 to 27 of 2020 were dismissed because M/s. Green Peace Constructions Private Limited withdrew them unconditionally.
Who was allowed to carry out the remaining construction?
The Real Estate Regulatory Authority had permitted and directed the Block Ninety Flat Owners Association, K.K. Nagar, to carry out the remaining construction.
Was the developer required to pay costs for withdrawing the appeals?
Yes. The Tamil Nadu Real Estate Appellate Tribunal directed M/s. Green Peace Constructions Private Limited to pay the respondents Rs. 1,000 in each appeal.
What happened to the connected Miscellaneous Applications?
The connected Miscellaneous Applications were closed when the appeals were dismissed as withdrawn.
