Appeal No. 132 of 2021
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued Appeal No. 132 of 2021 on 21 January 2022, dismissing the appeal filed by M/s BBCL Properties Private Limited. The appeal was dismissed because the required pre-deposit of the entire amount ordered by the Adjudicating Officer was not made despite extensions of time.
What the case concerns
Appeal No. 132 of 2021 before the Tamil Nadu Real Estate Appellate Tribunal arose from a complaint by A. Prashanth and Karthiga against M/s BBCL Properties Private Limited and M/s Sameeraa Foundation Private Limited. The complaint sought a refund of the sale consideration with interest and compensation.
The Adjudicating Officer had partly allowed C.C.P. No. 297 of 2019 on 11 March 2021. M/s BBCL Properties Private Limited challenged that decision before the Tribunal.
Amounts awarded by the Adjudicating Officer
The Adjudicating Officer directed the promoter to pay:
- Refund of the sale consideration of Rs.19,68,363.
- Interest at 10.05% per year under Rule 18 of the Tamil Nadu Real Estate Regulatory Authority Rules.
- Rs.25,550 for registration charges and stamp duty.
- Rs.2,00,000 as compensation for mental agony and hardship.
- Rs.25,000 as litigation costs.
The Tribunal recorded that M/s BBCL Properties Private Limited and the third respondent were jointly and severally liable to pay the amount.
Pre-deposit and extensions
Under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016, the Tribunal directed the appellant to pre-deposit the entire amount ordered by the Adjudicating Officer. The amount could be deposited by the appellant or the third respondent because both were treated as jointly and severally liable.
The Tribunal initially allowed payment by 4 January 2022. After an application for more time, it extended the deadline to 20 January 2022. Neither the appellant in Appeal No. 132 of 2021 nor the appellant in the connected Appeal No. 148 of 2021 deposited the amount by that date.
Tribunal's decision
The Tamil Nadu Real Estate Appellate Tribunal refused a further extension and dismissed M.A. No. 14 of 2022. It then dismissed Appeal No. 132 of 2021 for failure to comply with the pre-deposit requirement. Connected miscellaneous applications were also closed.
For buyers and promoters, the decision shows that an appeal may be dismissed without consideration of its merits when the promoter does not comply with a Tribunal direction to make the required pre-deposit.
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Common questions
Did the Tribunal decide whether the original refund award was correct?
No merits decision is recorded. The Tamil Nadu Real Estate Appellate Tribunal dismissed Appeal No. 132 of 2021 because the required pre-deposit was not made.
How much sale consideration was the promoter ordered to refund?
The Adjudicating Officer ordered a refund of Rs.19,68,363 with interest at 10.05% per year, along with specified registration charges, compensation and litigation costs.
Was the promoter given extra time to make the deposit?
Yes. The original deadline was 4 January 2022, and the Tribunal later extended it to 20 January 2022. A further extension was refused.
Could the third respondent have made the pre-deposit?
Yes. The Tribunal stated that the appellant or the third respondent could deposit the amount because they were jointly and severally liable.