Appeal No. 30 of 2021, M/s. Ozone Projects Private Limited v. C. Venugopal and Radha Venugopal
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued its order in Appeal No. 30 of 2021 on 22 October 2021. The appeal concerns compensation awarded to two homebuyers after M/s. Ozone Projects Private Limited delivered their flat 15 months late, but the supplied text ends before the Tribunal states its final decision.
What the appeal concerns
Appeal No. 30 of 2021 before the Tamil Nadu Real Estate Appellate Tribunal concerns residential unit F-502 in Tower F. M/s. Ozone Projects Private Limited and the homebuyers entered into a construction agreement on 9 November 2017, and the proportionate undivided share was conveyed by a registered sale deed on the same day.
The developer agreed to hand over possession in April 2018, including a three month grace period. Possession was handed over in July 2019, resulting in an admitted delay of 15 months.
Compensation challenged by the developer
The Adjudicating Officer had partly allowed the homebuyers' complaint and awarded:
- Delay compensation by way of interest at 7 percent per year.
- Rs.1,00,000 for mental agony.
- Rs.25,000 as litigation costs.
M/s. Ozone Projects Private Limited appealed against that award. The developer argued that the homebuyers had delayed payments, had not proved mental agony or inconvenience, and had received rent-free alternative accommodation within the same project.
Findings discussed by the Tribunal
The Tamil Nadu Real Estate Appellate Tribunal recorded the following points while considering the appeal:
- The 15 month delay in handing over the completed flat was admitted.
- The developer provided alternative accommodation from June 2018.
- The homebuyers claimed interest for April 2018 to June 2019, while alternative accommodation had been provided for 13 months of that period without payment by them.
- The developer alleged a payment delay of 588 days by the homebuyers.
- The construction agreement made the homebuyers liable for 18 percent interest on delayed payments, but the developer had not charged penal interest or escalation charges. The Tribunal therefore treated the waived penal interest claim as immaterial.
- When deciding compensation or interest, the Adjudicating Officer was required to consider the gain or unfair advantage from the default, the loss caused, whether the default was repetitive, and other factors needed for justice.
Why the incomplete text matters
The supplied text stops when the Tamil Nadu Real Estate Appellate Tribunal begins considering the Rs.1,00,000 award for mental agony and inconvenience. It does not include the final operative decision, so it does not establish from the supplied material whether the appeal was allowed, dismissed or partly allowed.
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Common questions
Did the Tribunal confirm that the flat was delivered late?
Yes. The Tamil Nadu Real Estate Appellate Tribunal recorded that possession was due in April 2018 and was handed over in July 2019, an admitted delay of 15 months.
What compensation had the Adjudicating Officer awarded the homebuyers?
The award included delay compensation at 7 percent per year, Rs.1,00,000 for mental agony and Rs.25,000 for litigation costs.
Did alternative accommodation affect the compensation claim?
The Tribunal treated the rent-free alternative accommodation as an important factor. It recorded that accommodation was provided for 13 months of the 15 month period for which the homebuyers claimed interest.
Was the developer's appeal ultimately allowed?
The supplied text does not show the final result. It ends while the Tribunal is considering the compensation for mental agony and inconvenience.
