A.No. 144/2021
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Islands) issued its order in Appeal Number 144 of 2021 on 28 January 2022, concerning an appeal by M/s. Casa Grand Builder Private Limited against Rajan Amuthan and R. Arulmozhi. The Tribunal dismissed the appeal because the promoter failed to make the required pre-deposit of 100% of the amount awarded by the Adjudicating Officer.
What the Tribunal decided
Appeal Number 144 of 2021 was filed by M/s. Casa Grand Builder Private Limited against Rajan Amuthan and R. Arulmozhi. On 28 January 2022, the Tamil Nadu Real Estate Appellate Tribunal dismissed the appeal because the promoter had not complied with its direction to pre-deposit 100% of the total amount awarded by the Adjudicating Officer.
The Tribunal also dismissed Miscellaneous Application Number 201 of 2021 for non-payment and closed the connected miscellaneous applications. It stated that the required payment was mandatory for the appeal to be entertained.
Background to the dispute
The homebuyers had filed Complaint Number 05 of 2020 against the promoter, seeking a refund of the amount paid, together with interest, compensation and costs. The Adjudicating Officer ordered the promoter to:
- Refund Rs.1,77,05,071.
- Pay interest at 10.25% from the date of each payment until repayment.
- Pay Rs.5,00,000 for mental agony and inconvenience.
- Pay Rs.50,000 towards litigation expenses.
M/s. Casa Grand Builder Private Limited challenged the Adjudicating Officer's order dated 23 July 2021 and filed an application seeking waiver of the pre-deposit requirement.
Why the appeal was dismissed
The Tamil Nadu Real Estate Appellate Tribunal recorded the following points in Appeal Number 144 of 2021:
- The Tribunal had directed the appellant to deposit 100% of the total amount ordered by the Adjudicating Officer.
- The conditional deadline for payment was 27 January 2022.
- The promoter had not deposited the amount by that deadline.
- The promoter's counsel requested additional time but had not filed an application for extension.
- The Tribunal treated the pre-deposit as a mandatory requirement under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016.
The Tribunal therefore did not entertain the promoter's appeal. The dismissal was based on failure to comply with the pre-deposit direction, rather than a fresh decision on the merits of the homebuyers' complaint.
Who is affected
The decision directly affects M/s. Casa Grand Builder Private Limited, Rajan Amuthan and R. Arulmozhi. It also shows promoters appealing an Adjudicating Officer's monetary award that failure to comply with a Tribunal pre-deposit direction can prevent the appeal from being entertained.
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Common questions
Did the Tamil Nadu Real Estate Appellate Tribunal cancel the refund awarded to the homebuyers?
No. The Tribunal dismissed the promoter's appeal for failure to make the required pre-deposit. It did not set aside the Adjudicating Officer's refund award.
How much had the Adjudicating Officer ordered the promoter to refund?
The Adjudicating Officer ordered a refund of Rs.1,77,05,071, with interest at 10.25% from the date of each payment until repayment.
Why was the promoter's request for more time not accepted?
The promoter's counsel requested more time after the payment deadline had expired, but no application for extension had been filed. The required deposit had also not been made.
Was compensation awarded in addition to the refund?
Yes. The Adjudicating Officer awarded Rs.5,00,000 for mental agony and inconvenience and Rs.50,000 towards litigation expenses.
