Appeal No. 105 of 2021
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry, Andaman and Nicobar Islands, issued its order in Appeal No. 105 of 2021 on 17 November 2021, dismissing an appeal by M/s. VGN Property Developers Private Limited because the promoter failed to make the directed 40% pre-deposit under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016. The appeal challenged an Adjudicating Officer's compensation order in favour of Suchita Eknath Fulari and Eknath Ramkisan Fulari.
Scope and parties
Appeal No. 105 of 2021 concerned M/s. VGN Property Developers Private Limited, represented by its Managing Director Pratish Vedhapuddi, as the appellant. Suchita Eknath Fulari and Eknath Ramkisan Fulari were the respondents.
The appeal was filed against the Adjudicating Officer's order dated 15 July 2021 in C.C.P. No. 49 of 2020. The Tamil Nadu Real Estate Appellate Tribunal took the appeal on file on 8 October 2021.
Underlying compensation order
The complaint before the Adjudicating Officer sought compensation for delay with interest, compensation for mental agony, and litigation costs. After hearing the contested complaint, the Adjudicating Officer allowed it in part and directed the promoter to pay:
- Delay compensation by way of interest at 9.85%.
- Rs. 1,00,000 as compensation for mental agony.
- Rs. 25,000 as litigation costs.
M/s. VGN Property Developers Private Limited challenged that decision before the Tamil Nadu Real Estate Appellate Tribunal and also filed a waiver application.
Pre-deposit requirement and dismissal
The Tamil Nadu Real Estate Appellate Tribunal directed the promoter to pre-deposit 40% of the total amount ordered by the Adjudicating Officer. The matter was listed for reporting compliance through video conferencing on 17 November 2021.
The Tribunal recorded the following points:
- The promoter did not comply with the 40% pre-deposit direction.
- The last date for compliance had already passed.
- No application seeking an extension for payment had been filed.
- Compliance with Section 43(5) was mandatory.
Because of that non-compliance, the Tribunal dismissed Appeal No. 105 of 2021. It also closed the connected miscellaneous applications.
Why the decision matters
Appeal No. 105 of 2021 directly affects the named promoter and respondents in their compensation dispute. For property buyers and promoters dealing with a real estate appeal, the decision shows that failure to meet a pre-deposit direction under Section 43(5) can result in dismissal without the appeal proceeding further.
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Common questions
Why was M/s. VGN Property Developers Private Limited's appeal dismissed?
The promoter did not make the directed pre-deposit of 40% of the total amount ordered by the Adjudicating Officer. The deadline had passed, and no extension application had been filed.
What had the Adjudicating Officer awarded to the buyers?
The Adjudicating Officer awarded delay compensation by way of interest at 9.85%, Rs. 1,00,000 for mental agony, and Rs. 25,000 as litigation costs.
Did the promoter ask the Tribunal to waive the pre-deposit?
The promoter filed a waiver application. The Tamil Nadu Real Estate Appellate Tribunal nevertheless directed a pre-deposit of 40% of the total amount ordered below.
What happened to the connected miscellaneous applications?
The Tamil Nadu Real Estate Appellate Tribunal closed the connected miscellaneous applications when it dismissed the appeal for non-compliance.
