Appeal No. 80 of 2020
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands), in Appeal No. 80 of 2020 dated 3 February 2021, dismissed an appeal by M/s. Sare Realty Projects Private Limited against Mr. Ajith Kumar. The appeal was dismissed because the company did not comply with a direction to deposit 40 per cent of the total amount ordered by the authority below, as required under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016.
What the case concerned
Appeal No. 80 of 2020 arose from a sale and construction agreement dated 22 October 2014 between M/s. Sare Realty Projects Private Limited, formerly known as Sare Jubilee Kolathur Private Limited, and Mr. Ajith Kumar.
Key facts recorded by the Tamil Nadu Real Estate Appellate Tribunal were:
- The agreed sale consideration was Rs.47,23,831.
- Mr. Ajith Kumar paid Rs.44,94,662.
- The company agreed to hand over possession on or before December 2014.
- Construction had not commenced at the site by December 2014.
- The company later assured delivery of the villa by November 2015.
- After possession was not delivered, Mr. Ajith Kumar sought a refund with interest and compensation.
- The Adjudicating Officer partly allowed his claim, following which the company filed the appeal.
Pre-deposit requirement
The Tamil Nadu Real Estate Appellate Tribunal considered Miscellaneous Application No. 155 of 2020 under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016. After hearing both sides through video conferencing, the Tribunal directed the company to deposit 40 per cent of the total amount ordered by the authority below on or before 25 January 2021.
The Tribunal stated that the appeal would be dismissed automatically if the deposit was not made. When the matter was taken up for compliance, the company requested more time because a certified copy of the order was unavailable. The Tribunal granted one further week, requiring compliance on or before 2 February 2021.
Outcome and practical effect
Appeal No. 80 of 2020 was dismissed after the company confirmed that it had not complied with the conditional deposit direction. Miscellaneous Application No. 155 of 2020 was also dismissed, and the connected miscellaneous applications were closed.
For homebuyers, developers and property professionals, the decision shows that failure to make the prerequisite deposit required under Section 43(5) can result in a real estate appeal being dismissed without further consideration of the challenge. The dismissal in this case was based specifically on non-compliance with the deposit direction.
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Common questions
Why was M/s. Sare Realty Projects Private Limited's appeal dismissed?
The Tamil Nadu Real Estate Appellate Tribunal dismissed the appeal because the company did not deposit 40 per cent of the total amount ordered by the authority below, despite being granted additional time.
How much had the buyer paid for the villa?
The order records that Mr. Ajith Kumar paid Rs.44,94,662 out of the agreed sale consideration of Rs.47,23,831.
What relief had the buyer requested?
Mr. Ajith Kumar filed a complaint seeking a refund with interest and compensation after the company failed to deliver possession as assured.
Were the connected miscellaneous applications left pending?
No. The Tamil Nadu Real Estate Appellate Tribunal closed the connected miscellaneous applications when it dismissed Miscellaneous Application No. 155 of 2020 and the appeal.
