Appeal No. 69 of 2020
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands) issued its order in Appeal No. 69 of 2020 on 10 February 2021. It dismissed the appeal filed by M/s. Phoenix Serene Spaces Private Limited because the company did not comply with a direction to deposit 50 per cent of the total amount ordered by the authority below.
What the tribunal decided
Appeal No. 69 of 2020 was decided by the Tamil Nadu Real Estate Appellate Tribunal under the Real Estate Regulation And Development Act 2016. The appeal was filed by M/s. Phoenix Serene Spaces Private Limited, formerly known as M/s. Phoenix Hodu Developers Private Limited, against Col. K.M.G. Panicker, Mrs. Radhika Panicker and Deepak Panicker.
The tribunal had directed the appellant to deposit 50 per cent of the total amount ordered by the authority below on or before 9 February 2021. The appellant's counsel confirmed that this condition had not been met. The tribunal therefore dismissed the appeal for non-compliance and closed the connected miscellaneous applications.
Background to the dispute
Appeal No. 69 of 2020 arose from an agreement for the sale and construction of an apartment dated 9 November 2015. The developer agreed to complete construction on or before December 2015.
The recorded financial details were:
- Total sale consideration of Rs.51,10,902.
- Amount paid by the respondents of Rs.48,55,355.
According to the order, the developer did not complete construction within the agreed period. When informed that the flat was ready, the respondents inspected it and considered that it was not in order and did not have the promised quality. They withdrew from the project and filed C.C.P. No. 210 of 2019 before the Adjudicating Officer.
The Adjudicating Officer allowed their complaint in part. The developer then filed the appeal and a waiver application.
Key procedural points
Appeal No. 69 of 2020 records the following steps:
- The appeal was taken on file on 9 November 2020.
- The application under Section 43(5), M.A. No. 132 of 2020, was heard through video conferencing on 11 January 2021.
- The tribunal required a deposit of 50 per cent of the total amount ordered below by 9 February 2021.
- The appeal was to be dismissed automatically if the deposit was not made.
- On 10 February 2021, counsel reported that the condition had not been complied with.
Effect on buyers and developers
Appeal No. 69 of 2020 directly affects only the named developer and respondents. The tribunal dismissed the developer's appeal because the required deposit was not made. It did not decide the developer's challenge on its merits, and the source does not provide the detailed relief granted by the Adjudicating Officer.
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Common questions
Why was the developer's appeal dismissed?
The Tamil Nadu Real Estate Appellate Tribunal dismissed Appeal No. 69 of 2020 because the developer failed to deposit 50 per cent of the total amount ordered by the authority below within the time given.
How much had the apartment buyers paid?
The order records a total sale consideration of Rs.51,10,902 and states that the respondents had paid Rs.48,55,355.
Did the tribunal decide whether the apartment had the promised quality?
No. The order records the respondents' complaint about completion and quality, but the appeal was dismissed for failure to comply with the deposit condition rather than after a decision on the merits.
What happened to the connected miscellaneous applications?
The Tamil Nadu Real Estate Appellate Tribunal closed the connected miscellaneous applications when it dismissed Appeal No. 69 of 2020.
