Appeal No. 65 of 2020
The Tamil Nadu Real Estate Appellate Tribunal issued Appeal No. 65 of 2020 on 26 April 2021, setting aside the Tamil Nadu Real Estate Regulatory Authority order that had dismissed Vijayaraghavan.V.K.'s complaint concerning the Osian Chlorophyll project. The Tribunal sent the complaint back to the Tamil Nadu Real Estate Regulatory Authority for a fresh decision on its merits after giving both sides an opportunity to be heard.
What the case concerns
Appeal No. 65 of 2020 before the Tamil Nadu Real Estate Appellate Tribunal arose from a flat buyer's complaint against SPR & RG Constructions Private Limited and its directors. The buyer alleged delay and deviations from the original approved plan for the Osian Chlorophyll project, including an increase from 950 to 1,050 flats and reductions in common and car parking areas.
The buyer also sought registration of the development as an ongoing project. The developer argued that the project was excluded because its completion certificate application had been filed before notification of the Tamil Nadu Real Estate Rules, 2017.
Earlier proceedings
The Tamil Nadu Real Estate Regulatory Authority dismissed Complaint No. 442 of 2019 on 13 August 2020. It relied on an earlier Tamil Nadu Real Estate Appellate Tribunal finding that the project was not ongoing and considered it appropriate to wait for the High Court of Madras to decide a pending second appeal.
The High Court of Madras subsequently decided on 15 September 2020 that:
- The Osian Chlorophyll project was an ongoing project.
- The allottee's complaint was maintainable before the Adjudicating Officer.
- The relevant exclusion in the Tamil Nadu Real Estate Rules, 2017 was contrary to the Real Estate (Regulation and Development) Act, 2016.
- The developer could not rely on that exclusion to claim exemption from registration.
Tribunal's decision
The Tamil Nadu Real Estate Appellate Tribunal held that the High Court of Madras decision had to be followed unless and until the Supreme Court decided the developer's pending Special Leave Petition.
The Tribunal found that the Tamil Nadu Real Estate Regulatory Authority had not assessed the parties' factual claims or evidence. It therefore:
- Allowed the buyer's appeal.
- Set aside the order in Complaint No. 442 of 2019 dated 13 August 2020.
- Remanded the complaint to the Tamil Nadu Real Estate Regulatory Authority.
- Directed the Authority to decide the complaint on its merits after hearing both sides.
- Made no order as to costs and closed the connected miscellaneous applications.
Who may be affected
Appeal No. 65 of 2020 directly affects Vijayaraghavan.V.K., SPR & RG Constructions Private Limited and the other named respondents. It may also be relevant to other Osian Chlorophyll allottees because it records the High Court of Madras finding that the project was ongoing and could not claim the stated exemption from registration. The Tribunal did not finally decide the buyer's factual claims or reliefs, leaving those matters for the Regulatory Authority.
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Common questions
Did the Tribunal finally award compensation or other relief to the buyer?
No. The Tamil Nadu Real Estate Appellate Tribunal returned the complaint to the Tamil Nadu Real Estate Regulatory Authority for a fresh decision on the facts and merits.
Was the Osian Chlorophyll project treated as an ongoing project?
Yes. The order records that the High Court of Madras found the project to be ongoing and the complaint maintainable, and the Tribunal held that this finding had to be followed pending the Supreme Court's decision.
Why was the Regulatory Authority's dismissal set aside?
The Tamil Nadu Real Estate Appellate Tribunal found that the Regulatory Authority had waited for the High Court decision without deciding the parties' factual claims and evidence. After the High Court gave its verdict, the complaint required a fresh decision on its merits.
What happens to Complaint No. 442 of 2019?
Complaint No. 442 of 2019 was remanded to the Tamil Nadu Real Estate Regulatory Authority. Both sides must be given an opportunity before the Authority decides the case on its merits.
