Case law, Tamil Nadu land law
Appeal No. 12 of 2021
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands) pronounced the order in Appeal No. 12 of 2021 on 26 April 2021. The Tribunal dismissed an appeal by M/s. Influence Infrastructure and M/s. Influence Enterprises (India) Private Limited because they did not comply with an order requiring pre-deposit of 40 percent of the amount ordered by the Adjudicating Officer.
What the case concerns
Appeal No. 12 of 2021 arose from a villa purchase and construction dispute involving proposed purchasers Mrs. Urmila Modi and Abishek Modi, the appellants M/s. Influence Infrastructure and M/s. Influence Enterprises (India) Private Limited, and M/s. Vijay Shanthi Builders Limited.
The proposed purchasers entered into a tripartite agreement with the appellants on 7 June 2012. The agreement concerned the purchase and construction of a villa in a project. M/s. Vijay Shanthi Builders Limited was associated with development of the project.
Purchase, payment and delay
The transaction and complaint described in Appeal No. 12 of 2021 included the following facts:
- The total sale consideration was Rs.2,52,25,000.
- The proposed purchasers paid Rs.1,83,72,550, stated to be 72 percent of the villa's total value.
- The appellants agreed to complete construction and deliver possession on or before 7 February 2013.
- The proposed purchasers complained that the promoters had failed to deliver the villa and had not commenced construction.
- The appellants and M/s. Vijay Shanthi Builders Limited denied the allegations.
The Adjudicating Officer partly allowed the complaint and ordered refund of the amount with interest and compensation. The appeal challenged that decision.
Why the appeal was dismissed
The Tamil Nadu Real Estate Appellate Tribunal took Appeal No. 12 of 2021 on file on 18 February 2021. In M.A.No.21/2021, under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016, the Tribunal directed the appellants to pre-deposit 40 percent of the total amount ordered by the Adjudicating Officer.
At the hearing on 26 April 2021, the appellants stated through counsel that they had not complied and requested more time. The Tribunal recorded that an extension had already been granted. It therefore dismissed the appeal for non-compliance with the pre-deposit direction, ordered no costs, and closed the connected miscellaneous applications.
Who is affected
Appeal No. 12 of 2021 directly affects the named purchasers, appellants and builder. For other property buyers and promoters, it shows that the Tribunal dismissed this particular promoter appeal when the required pre-deposit was not made despite an extension.
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Common questions
Did the purchasers receive an order for refund?
Yes. The Adjudicating Officer partly allowed their complaint and ordered refund of the amount paid, together with interest and compensation.
Why did the Tamil Nadu Real Estate Appellate Tribunal dismiss the appeal?
The appellants did not make the required pre-deposit of 40 percent of the total amount ordered by the Adjudicating Officer, despite receiving an extension of time.
How much had the purchasers paid for the villa?
The order states that they paid Rs.1,83,72,550, which represented 72 percent of the total villa value of Rs.2,52,25,000.
Did the Tribunal award costs when dismissing the appeal?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed the appeal for non-compliance and ordered no costs.
