Appeal No. 31 of 2021, Emaar India Limited versus Adnan
The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal No. 31 of 2021 on 8 June 2022, recording the settlement between Emaar India Limited and allottee Adnan concerning a flat in The Avenues at Esplanade, Tondiarpet, Chennai. The Tribunal disposed of the appeal according to the settlement dated 18 May 2022 and closed any pending connected miscellaneous applications.
What the case concerned
Appeal No. 31 of 2021 arose from a dispute between Emaar India Limited, formerly known as Emaar MGF Land Limited, and an allottee named Adnan. The dispute concerned a flat in the project called The Avenues at Esplanade at Tondiarpet, Chennai.
The allottee had complained that the promoter failed to deliver possession according to the construction agreement. The allottee therefore sought compensation before the Adjudicating Officer attached to the Tamil Nadu Real Estate Regulatory Authority, Chennai.
Earlier decision and appeal
The Adjudicating Officer passed an ex parte order on 3 January 2020. That decision directed the promoter to:
- Refund Rs.40,27,075 with interest at 10.15 per cent per year, calculated from the respective payment dates.
- Pay Rs.2,00,000 as compensation for mental agony, hardship and inconvenience.
- Pay Rs.20,000 towards litigation costs.
- Make the payments within one month.
Emaar India Limited appealed against that decision. During the appeal, the company deposited Rs.23,03,839, described as 30 per cent of all amounts awarded by the Adjudicating Officer.
Settlement and final outcome
The Tamil Nadu Real Estate Appellate Tribunal referred the dispute to the Chennai mediation centre on 27 October 2021 at the parties' request. The parties later signed a settlement agreement dated 18 May 2022.
Key recorded settlement terms include:
- The allottee agreed to pay Rs.11,00,000 to Emaar India Limited towards dues concerning the unit.
- The parties agreed to settle their issues and grievances concerning the unit and project.
- The allottee agreed not to continue legal or other proceedings against the company and related persons or entities concerning the unit or project.
- Emaar India Limited was not responsible for repairs or improvements to the unit.
- Emaar India Limited was not responsible for taxes, including property tax, relating to the unit.
On 8 June 2022, the Tribunal accepted and recorded the settlement. The settlement agreement forms part of the Tribunal's order, the appeal was disposed of according to its terms, and any pending connected miscellaneous applications were closed.
Who is affected
Appeal No. 31 of 2021 directly affects Emaar India Limited and Adnan in relation to the identified unit and project. It records the negotiated resolution of their individual dispute rather than announcing a general rule for other property owners or buyers.
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Common questions
Did the Tribunal decide whether the original refund award was correct?
The Tamil Nadu Real Estate Appellate Tribunal disposed of the appeal according to the parties' settlement. The order records the settlement rather than giving a separate decision on the merits of the original award.
Does Emaar India Limited still have to repair or improve the flat?
The recorded settlement states that Emaar India Limited is not liable to carry out repairs or improvements of any nature concerning the unit.
Who must pay property tax for the unit?
The settlement states that Emaar India Limited is not liable to pay taxes, including property tax, concerning the unit.
Can the allottee continue the listed proceedings against the company?
The allottee agreed not to proceed further with legal or other proceedings against the company and related persons or entities concerning the unit or project. The Tribunal disposed of the appeal under the settlement and closed pending connected miscellaneous applications.
