Case law, Tamil Nadu land law
Appeal No. 131 of 2021
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands), in Appeal No. 131 of 2021 dated 21 January 2022, dismissed an appeal by M/s BBCL Developers (India) Private Limited because the promoter failed to make the required pre-deposit. The appeal challenged an Adjudicating Officer's direction to refund the buyers' sale consideration with interest and pay compensation and litigation costs.
What the case concerns
Appeal No. 131 of 2021 arose from a complaint by Deepak Mehta and Chandan Bala against M/s BBCL Developers (India) Private Limited. HDFC Bank, identified as HDFC Limited and represented by its authorised signatory, was also a respondent.
The buyers had sought a refund of the sale consideration with interest and compensation before the Adjudicating Officer in C.C.P. No. 58 of 2020. The Adjudicating Officer partly allowed that complaint on 6 August 2021.
Amounts awarded by the Adjudicating Officer
The Tamil Nadu Real Estate Appellate Tribunal recorded that the Adjudicating Officer directed the promoter to:
- Refund the sale consideration of Rs.5,37,00,000.
- Pay interest stated as Rs.6,06,24,796.
- Pay further interest at 10.15% per annum under Rule 18 of the TNRERA Rules.
- Pay Rs.10,00,000 as compensation for mental agony.
- Pay Rs.50,000 towards litigation costs.
M/s BBCL Developers (India) Private Limited challenged that decision and filed an application seeking waiver of the pre-deposit.
Why the appeal was dismissed
The Tamil Nadu Real Estate Appellate Tribunal required the promoter to pre-deposit 100% of the total amount directed by the Adjudicating Officer. The tribunal initially allowed five weeks for payment, up to 5 January 2022.
After the promoter did not pay within that period, the tribunal allowed M.A. No. 6 of 2022 and extended the deadline until 20 January 2022 as a final opportunity. The tribunal expressly stated that there would be no further extension.
The promoter still did not deposit any amount and filed M.A. No. 13 of 2022 seeking more time. The tribunal dismissed that application and then dismissed Appeal No. 131 of 2021 for failure to comply with the mandatory deposit requirement under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016.
Practical effect
The Tamil Nadu Real Estate Appellate Tribunal did not decide the underlying refund and compensation dispute on its merits. It dismissed the promoter's appeal because the required amount was not deposited. No costs were awarded in the appeal, and all connected miscellaneous applications were closed.
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Common questions
Why was the developer's appeal dismissed?
M/s BBCL Developers (India) Private Limited did not make the 100% pre-deposit required by the Tamil Nadu Real Estate Appellate Tribunal, even after receiving a final extension.
Did the tribunal reduce or cancel the buyers' refund award?
No such reduction or cancellation is recorded. The tribunal dismissed the appeal for non-compliance with the deposit requirement rather than deciding the underlying dispute on its merits.
How much had the Adjudicating Officer directed the promoter to pay?
The recorded directions included refund of Rs.5,37,00,000, interest stated as Rs.6,06,24,796, further interest at 10.15% per annum, Rs.10,00,000 for mental agony and Rs.50,000 for litigation costs.
Was the developer given extra time to make the deposit?
Yes. After the original payment period expired, the tribunal extended the deadline until 20 January 2022 as a last chance, but the developer did not deposit any amount.
