A.No. 143/2021, M/s. Casa Grand Builder Private Limited v. Manikandan Nagarajan
The Tamil Nadu Real Estate Appellate Tribunal issued the order in A.No. 143/2021 on 28 January 2022, dismissing M/s. Casa Grand Builder Private Limited's appeal against a delay compensation award in favour of home buyer Manikandan Nagarajan. The appeal was dismissed because the promoter failed to make the mandatory pre-deposit of 100% of the amount awarded by the Adjudicating Officer within the time allowed.
What the case concerns
A.No. 143/2021 arose from a home buyer's complaint against promoter M/s. Casa Grand Builder Private Limited for delay in delivery. The appeal challenged the Adjudicating Officer's order in C.C.P.No.53/2020 dated 30 December 2020.
The Tamil Nadu Real Estate Appellate Tribunal, which covers Tamil Nadu, Puducherry, Andaman and Nicobar Islands, heard the matter under the Real Estate (Regulation and Development) Act, 2016.
Compensation awarded to the home buyer
The Adjudicating Officer had directed the promoter to pay:
- Delay compensation as interest at 10.05% on Rs.1,66,61,350, calculated from December 2018 until delivery on 16 November 2019.
- Rs.1,00,000 for mental agony and inconvenience.
- Rs.25,000 for litigation expenses.
M/s. Casa Grand Builder Private Limited appealed against that decision and filed M.A.No.199/2021 seeking waiver of the pre-deposit requirement.
Why the appeal was dismissed
The Tamil Nadu Real Estate Appellate Tribunal ordered the promoter to pre-deposit 100% of the total amount awarded by the Adjudicating Officer. Payment was required on or before 27 January 2022.
At the hearing held by video conference on 28 January 2022, counsel for the promoter stated that the amount had not been deposited. Counsel requested more time but had not filed an application seeking an extension.
The Tribunal treated the payment requirement as mandatory for entertaining the appeal. It therefore:
- Dismissed M.A.No.199/2021 for non-payment of the amount ordered.
- Dismissed A.No.143/2021 for failure to comply with the pre-deposit requirement.
- Closed the connected miscellaneous applications.
Who should note the decision
The decision is relevant to promoters appealing monetary awards under the Real Estate (Regulation and Development) Act, 2016. It shows that failure to comply with a Tribunal pre-deposit direction can prevent an appeal from being entertained, even where counsel informally asks for additional time.
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Common questions
Why did the Tamil Nadu Real Estate Appellate Tribunal dismiss the builder's appeal?
The promoter did not deposit 100% of the amount awarded by the Adjudicating Officer within the time allowed. The Tribunal treated the pre-deposit as mandatory for entertaining the appeal.
How much delay compensation had the home buyer been awarded?
The Adjudicating Officer awarded interest at 10.05% on Rs.1,66,61,350 from December 2018 until delivery on 16 November 2019, plus Rs.1,00,000 for mental agony and inconvenience and Rs.25,000 for litigation expenses.
Did the promoter ask for more time to make the deposit?
Yes. Counsel requested an extension at the hearing on 28 January 2022, but no application for extension had been filed.
Did the Tribunal waive the pre-deposit requirement?
No. In M.A.No.199/2021, the Tribunal required a pre-deposit of 100% of the total amount awarded by the Adjudicating Officer.
