Appeal No. 141 of 2021
The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal No. 141 of 2021 on 22 April 2022, dismissing an appeal by M/s. Dugar Housing Limited concerning the Sky Dugar project. The Tribunal held that the project was ongoing when the Real Estate (Regulation and Development) Act, 2016 came into force, so the complaint was maintainable before the Tamil Nadu Real Estate Regulatory Authority and its directions did not require interference.
What the appeal concerned
Appeal No. 141 of 2021 arose from a complaint by C. Balasubramanian, an allottee of Flat No. 101, Tower 10 in the Sky Dugar project developed by M/s. Dugar Housing Limited. The allottee stated that the promoter had promised to complete 17 pending amenities.
The Tamil Nadu Real Estate Regulatory Authority had partly allowed the complaint in C.No.44 of 2020 on 22 September 2021. It directed the promoter to register the project by 30 November 2021 and to make the swimming pool operational when the necessary no objection certificate was obtained. For the dispute concerning the apartment owners' association, the Authority directed the complainant to approach the appropriate Registrar of Societies.
Promoter's argument
M/s. Dugar Housing Limited argued that the Tamil Nadu Real Estate Regulatory Authority lacked jurisdiction because the promoter had applied for a completion certificate on 29 May 2017. It relied on Rule 2(h)(ii) of the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 and an earlier regulatory decision involving the same promoter.
The promoter also argued that the earlier decision was binding and prevented the Authority from taking a different view in this complaint.
Tribunal's findings
The Tamil Nadu Real Estate Appellate Tribunal applied the Madras High Court decision in CMSA No.22 of 2019, dated 15 September 2020. It found that:
- The relevant question was whether the project was ongoing on 1 May 2017, when Section 3 of the Real Estate (Regulation and Development) Act, 2016 came into force.
- The promoter applied for the completion certificate only on 29 May 2017.
- The project was therefore an ongoing project on 1 May 2017.
- The complaint was maintainable before the Tamil Nadu Real Estate Regulatory Authority.
- The earlier regulatory decision in C.No.401 of 2019 applied only to the parties in that case and did not bind the Authority as a judgment affecting everyone.
Result and practical effect
The Tamil Nadu Real Estate Appellate Tribunal dismissed the promoter's appeal and left the Regulatory Authority's conclusions undisturbed. Each party was directed to bear its own costs, and any connected miscellaneous applications were closed.
For Sky Dugar allottees, the decision confirms that the project fell within the Authority's jurisdiction. It also leaves in place the direction concerning operation of the swimming pool after the required no objection certificate is obtained.
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Common questions
Did the Tribunal treat the Sky Dugar project as an ongoing project?
Yes. The Tribunal held that it was ongoing on 1 May 2017 because the promoter applied for the completion certificate only on 29 May 2017.
Was the promoter required to open the swimming pool immediately?
No. The Regulatory Authority directed the promoter to make the swimming pool operational when the necessary no objection certificate was obtained, and the Tribunal did not interfere with that conclusion.
Did the Tribunal decide the dispute about the apartment owners' association?
No. The Regulatory Authority directed the complainant to approach the appropriate Registrar of Societies concerning the association issue.
Who had to pay the costs of the appeal?
The Tamil Nadu Real Estate Appellate Tribunal directed both parties to bear their own costs.
