Appeal No. 79 of 2020
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and Andaman and Nicobar Islands, issued its order in Appeal No. 79 of 2020 on 3 February 2021 under the Real Estate (Regulation and Development) Act, 2016. The Tribunal dismissed the appeal by M/s. Sare Shelters Project Private Limited against Mr. Rajmohan Murugesan because the developer failed to make the required pre-deposit.
What the Tribunal decided
The Tamil Nadu Real Estate Appellate Tribunal dismissed Appeal No. 79 of 2020 on 3 February 2021. M/s. Sare Shelters Project Private Limited, formerly known as SARE Jubilee Shelter Private Limited, had appealed against an order obtained by buyer Mr. Rajmohan Murugesan.
The dismissal was based on failure to comply with a pre-deposit direction, rather than a decision on the underlying construction and refund dispute.
Background to the dispute
Appeal No. 79 of 2020 arose from a sale and construction agreement dated 10 February 2012. The Tribunal recorded the following facts:
- The agreed sale consideration was Rs.29,25,724.
- The buyer paid Rs.29,50,596, described as 100 per cent of the consideration.
- The developer agreed to hand over possession within 24 months, with a grace period of three months, from the date of building plan sanction.
- The building plan was approved on 11 June 2012.
- The developer sent an offer of possession on 28 November 2014 and demanded a final payment of 10 per cent.
- The buyer stated that construction had made no progress from December 2013 and requested termination, refund, interest and compensation.
- The Adjudicating Officer allowed the buyer's claim in part, after which the developer filed the appeal.
Why the appeal was dismissed
The Tamil Nadu Real Estate Appellate Tribunal directed the developer on 6 January 2021 to deposit 40 per cent of the total amount ordered by the lower forum by 25 January 2021. The developer sought more time because a certified copy of the order was unavailable, and the Tribunal extended the deadline to 2 February 2021.
The developer informed the Tribunal on 3 February 2021 that it had not complied. The Tribunal therefore:
- Dismissed M.A. No. 152 of 2020 for non-compliance with the pre-deposit requirement under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016.
- Dismissed Appeal No. 79 of 2020 as a consequence.
- Closed the connected miscellaneous applications.
Who is affected
Appeal No. 79 of 2020 directly concerns the named developer and buyer. For other buyers, developers and professionals, it shows that the Tribunal treated compliance with its pre-deposit direction as a prerequisite for continuing the developer's appeal.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Did the Tribunal decide whether the buyer should receive a refund?
The Tribunal did not decide the underlying refund dispute on its merits. It recorded that the Adjudicating Officer had allowed the buyer's claim in part, but dismissed the developer's appeal because the required pre-deposit was not made.
How much was the developer directed to deposit?
The Tamil Nadu Real Estate Appellate Tribunal directed the developer to deposit 40 per cent of the total amount ordered by the lower forum.
Was the developer given extra time to make the deposit?
Yes. After the developer cited the non-availability of a certified copy, the Tribunal extended the compliance deadline to 2 February 2021.
Does Appeal No. 79 of 2020 directly affect other properties?
The order directly concerns M/s. Sare Shelters Project Private Limited and Mr. Rajmohan Murugesan. It records how the Tribunal handled non-compliance with a pre-deposit direction in that appeal.
