Case law, Tamil Nadu land law
A.No. 135/2021, M/s. Pacifica (Chennai Project) Infrastructure Company Pvt. Ltd. v. M.G.Sarangan
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued its order in A.No. 135/2021 on 19 January 2022. It dismissed the promoter's appeal because the promoter deposited only 30 per cent of the amount required by the Tribunal, instead of the ordered 100 per cent pre-deposit.
What the case was about
A.No. 135/2021 before the Tamil Nadu Real Estate Appellate Tribunal arose from a home buyer's complaint against M/s. Pacifica (Chennai Project) Infrastructure Company Private Limited. The home buyer had sought a refund of the amount paid, together with interest, compensation and costs.
The Adjudicating Officer, in C.C.P.No.65/2020 dated 27 August 2021, directed the promoter to:
- Refund Rs.42,00,244.
- Pay interest at 10.05 per cent from the respective dates of payment until repayment.
- Pay Rs.2,00,000 for mental agony and inconvenience.
- Pay Rs.25,000 towards litigation expenses.
The promoter challenged that decision before the Tamil Nadu Real Estate Appellate Tribunal.
Pre-deposit requirement
In M.A.No.186/2021 under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016, the Tamil Nadu Real Estate Appellate Tribunal required the promoter to pre-deposit 100 per cent of the total amount ordered by the Adjudicating Officer.
The promoter deposited only 30 per cent on 7 December 2021. The balance was not deposited by the last date, 18 January 2022, or when the matter was called on 19 January 2022.
Tribunal's decision
The Tamil Nadu Real Estate Appellate Tribunal held that A.No. 135/2021 could not be entertained because the promoter had not deposited the full amount required. It referred to the Supreme Court judgment dated 11 November 2021 in M/s. Newtech Promoters and Developers Private Limited v. State of Uttar Pradesh and others.
The Tribunal therefore:
- Dismissed the appeal for failure to comply with the pre-deposit direction.
- Made no order as to costs.
- Closed the connected miscellaneous applications.
Who is affected
The decision directly affects the promoter and the home buyer in C.C.P.No.65/2020. It is also relevant to promoters pursuing real estate appeals where the Tamil Nadu Real Estate Appellate Tribunal has ordered a pre-deposit, because failure to deposit the full ordered amount may prevent the appeal from being entertained.
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Common questions
Did the Tribunal decide the promoter's appeal on its merits?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed A.No. 135/2021 because the promoter did not comply with the full pre-deposit requirement.
How much did the promoter deposit?
The promoter deposited 30 per cent on 7 December 2021, although the Tribunal had ordered a pre-deposit of 100 per cent of the total amount awarded below.
What refund had the Adjudicating Officer awarded to the home buyer?
The Adjudicating Officer directed a refund of Rs.42,00,244 with interest at 10.05 per cent from the respective dates of payment until repayment, along with Rs.2,00,000 for mental agony and inconvenience and Rs.25,000 for litigation expenses.
Did the Tribunal award costs when dismissing the appeal?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed the appeal for non-compliance, made no order as to costs and closed the connected miscellaneous applications.
