Appeal No. 34 of 2021
The Tamil Nadu Real Estate Appellate Tribunal issued Appeal No. 34 of 2021 on 17 December 2021, holding that a registered association of allottees may jointly file a complaint seeking refund and compensation for a common grievance. The Tribunal set aside the Adjudicating Officer's rejection of the complaint filed by the Sai Peace and Prosperity Apartments Buyers Association, Kottivakkam, and directed the Tamil Nadu Real Estate Regulatory Authority to number the complaint and decide it on its merits.
What the case was about
Appeal No. 34 of 2021 arose from a complaint by the Sai Peace and Prosperity Apartments Buyers Association, Kottivakkam, against Ambojini Property Developers Private Limited, ASK Investment Managers Private Limited and Real Value Promoters Private Limited. The association sought refund of the sale consideration and compensation on behalf of apartment allottees.
The Adjudicating Officer had refused to number the complaint and held that an association of allottees could not maintain it. The office had initially directed the association to file a separate complaint for each apartment.
What the Tribunal decided
The Tamil Nadu Real Estate Appellate Tribunal found that the association could file the complaint. Its key findings were:
- An aggrieved person may file a complaint under the Real Estate (Regulation and Development) Act, 2016.
- The meaning of a person expressly includes an association of allottees registered under any law in force.
- The appellant was registered under the Tamil Nadu Societies Registration Act, 1975, with registration number 122 of 2018, and had produced proof of registration.
- Registration was the stated requirement for the association to qualify, and the appellant had complied with it.
- Represented allottees need not have identical causes of action if they have the same interest or a common grievance.
- The allottees had a common grievance concerning refund and compensation for delay.
The Tribunal concluded that the Adjudicating Officer had incorrectly interpreted the complaint provision and wrongly rejected the association's complaint.
Directions and practical effect
The Tamil Nadu Real Estate Appellate Tribunal allowed Appeal No. 34 of 2021 without costs and set aside the Adjudicating Officer's order dated 30 November 2020. It directed the Adjudicating Officer to return the association's complaint to the Tamil Nadu Real Estate Regulatory Authority.
The Tamil Nadu Real Estate Regulatory Authority was directed to number the complaint, give both sides sufficient opportunity to present their cases, and decide the complaint on its merits in accordance with law. Appeal No. 34 of 2021 did not itself grant the requested refund or compensation. It established that the registered buyers' association could maintain the joint complaint and enabled the underlying claims to proceed.
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Common questions
Can a registered apartment buyers' association file one complaint for several allottees?
Yes. The Tamil Nadu Real Estate Appellate Tribunal held that a registered association of allottees is included within the meaning of a person who may file a complaint, particularly where the allottees share a common grievance.
Must every allottee have exactly the same cause of action?
No. The Tribunal stated that represented persons need not have the same cause of action if they have the same interest or a common grievance seeking redress.
Did the buyers receive a refund or compensation through Appeal No. 34 of 2021?
No refund or compensation was awarded in the appeal. The Tamil Nadu Real Estate Regulatory Authority was directed to number the complaint and decide those claims on their merits after hearing both sides.
What happened to the earlier rejection of the buyers' association complaint?
The Tamil Nadu Real Estate Appellate Tribunal set aside the Adjudicating Officer's order dated 30 November 2020 and held that the association's complaint was maintainable.
