Appeal No. 33 of 2021, M/s. Ozone Projects Private Limited v. Mrs. Nirmala Ramesh
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands) delivered an order in Appeal No. 33 of 2021 on 6 December 2021, considering a promoter's challenge to delay compensation, compensation for mental agony and litigation costs awarded to a home buyer. The supplied text records the claims, agreement terms and issues considered, but ends before the Tribunal's final decision on the appeal.
What the appeal concerns
Appeal No. 33 of 2021 concerns a dispute between M/s. Ozone Projects Private Limited, the promoter, and Mrs. Nirmala Ramesh, the home buyer. The promoter appealed against the Adjudicating Officer's order dated 18 December 2020 in C.C.P. No. 300/2019.
The Adjudicating Officer had directed the promoter to pay delay compensation at Rs.15 per month from February 2014 to 7 November 2018, with interest at 9 percent per annum. The home buyer was also awarded Rs.5,00,000 for mental agony and inconvenience and Rs.25,000 as litigation costs.
Connected payment dispute
The promoter separately claimed unpaid sale consideration from the home buyer in C.C.P. No. 301/2019. The Adjudicating Officer directed the home buyer to pay Rs.26,51,749 with interest at 9 percent per annum.
Neither party challenged that direction. The Tribunal therefore treated Rs.26,51,749 as the admitted amount due from the home buyer to the promoter. The promoter's appeal was limited to the compensation awarded in C.C.P. No. 300/2019.
Agreement and possession dates
The construction agreement dated 1 February 2012 contained the following terms:
- Delivery was scheduled for October 2013, with a grace period of three months.
- The grace period ended in January 2014.
- The undivided share of land was registered on 17 August 2016.
- Possession was delivered on 7 November 2018.
- The Tribunal recorded the delivery delay as 57 months.
- Delay compensation under the agreement depended on the allottee having paid instalments according to the payment schedule.
- The agreement allowed the developer, at its discretion, to accept delayed payments with interest at 18 percent per annum.
Questions examined by the Tribunal
The Tamil Nadu Real Estate Appellate Tribunal considered:
- Whether the home buyer's payment default prevented her from claiming interest or compensation under Section 19(6) and Rule 19(2).
- Whether Rs.5,00,000 for mental agony and inconvenience was awarded without applying the factors in Section 72.
- Whether the promoter's appeal should be allowed.
The supplied text ends during the Tribunal's discussion of the 57 month delay. It does not include the final findings or the operative result of the appeal.
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Common questions
Did the Tribunal allow the promoter's appeal?
The supplied text does not include the final result. It ends while the Tribunal is discussing the period of delay.
When was possession due and when was it delivered?
Possession was scheduled for October 2013 with a three month grace period ending in January 2014. The promoter delivered possession on 7 November 2018.
Did the home buyer still owe money to the promoter?
Yes. The Adjudicating Officer directed the home buyer to pay Rs.26,51,749 with interest at 9 percent per annum, and neither party challenged that direction.
What compensation had been awarded to the home buyer?
The Adjudicating Officer awarded delay compensation at Rs.15 per month from February 2014 to 7 November 2018 with interest at 9 percent per annum, Rs.5,00,000 for mental agony and inconvenience, and Rs.25,000 as litigation costs.
