Common Order in Miscellaneous Application Nos. 83 and 85 of 2020

What the case concerns

The Tamil Nadu Real Estate Appellate Tribunal considered applications filed by M/s. Oragadam City Developers Private Limited and four other developers in Appeal Nos. 48 and 49 of 2020. The appeals challenged ex parte orders obtained by homebuyers in C.C.P. Nos. 159 and 160 of 2019.

The homebuyers had paid substantial amounts for row houses that were due for delivery in 2013. They complained that possession had not been handed over and sought refunds with interest, compensation, costs and litigation expenses. The Adjudicating Officer granted relief based on the available records after the first respondent developer failed to appear. The other developer respondents had not been issued notice.

Positions of the parties

The developers sought waiver of the deposit required before their appeals could be heard. Their main claims were:

• Construction had been completed and handover was offered.
• The homebuyers had discussed taking alternative units.
• The original decisions were ex parte and did not consider the developers’ evidence.
• Paying the full amount ordered would cause loss and hardship.

The homebuyers argued that the handover letter did not reflect the actual condition of the project. They also maintained that the required deposit was necessary before the appeals could be entertained.

Tribunal’s reasoning

The Tamil Nadu Real Estate Appellate Tribunal considered Section 43(5) of the Real Estate Regulation and Development Act 2016, which requires a promoter to make a deposit before an appeal is heard. It also considered court decisions concerning the Tribunal’s discretion over the amount to be deposited.

The Tribunal noted that the original decisions were ex parte and that notices had not been issued to all developer respondents. Treating those circumstances as significant, it declined to waive payment entirely but required a deposit of 30% rather than the entire amount ordered by the Adjudicating Officer.

Result and practical effect

The Tamil Nadu Real Estate Appellate Tribunal allowed Miscellaneous Application Nos. 83 and 85 of 2020 subject to these conditions:

• The developers had to deposit 30% of the total amount ordered in each complaint.
• The deposit deadline was 10 January 2021.
• Failure to deposit would automatically dismiss the applications.
• The matters were listed for compliance on 11 January 2021.

The ruling concerns the deposit needed for these particular appeals. It does not decide the final merits of the homebuyers’ refund and compensation claims.