Appeal No. 35 of 2021, M/s. Rajeswari Infrastructure Limited v. N. Prabakaran

What the case concerns

The Tamil Nadu Real Estate Appellate Tribunal considered a dispute between M/s. Rajeswari Infrastructure Limited, the promoter, and N. Prabakaran, the home buyer. The agreements concerned a first floor flat at Vandalur village in Chengalpet District, with a super built-up area of 667 square feet and 369 square feet of undivided land share.

The construction agreement dated 25 May 2012 required completion within 12 months. The construction price was Rs.22,51,000, of which the home buyer had paid Rs.20,25,900. Possession had not been handed over.

Earlier proceedings

The home buyer had previously sought compensation before the District Consumer Disputes Redressal Forum, Chennai (South). That complaint was dismissed on 11 June 2019. The home buyer later approached the Tamil Nadu Real Estate Regulatory Authority for possession and damages.

The Tamil Nadu Real Estate Regulatory Authority directed the promoter to hand over possession before 28 February 2021 after collecting the balance construction cost. It also permitted the parties to approach the Adjudicating Officer concerning delayed construction compensation and delayed payment interest.

Tribunal findings

The Tamil Nadu Real Estate Appellate Tribunal found that:

• The earlier consumer complaint for compensation did not prevent the home buyer from seeking possession before the Regulatory Authority because the reliefs were different.
• The project could be treated as ongoing because the promoter had not obtained a completion certificate when the Real Estate (Regulations and Development) Act, 2016 came into force.
• The promoter had received more than 90 per cent of the sale consideration but had neither handed over possession nor produced documentary proof that plastering and painting were complete.
• The final instalment became payable only after the promoter informed the home buyer that plastering and painting had been completed.
• The promoter had acknowledged using the allotted flat to store raw materials.

Result and practical effect

The Tamil Nadu Real Estate Appellate Tribunal dismissed the promoter's appeal with costs and confirmed the Regulatory Authority's findings. It modified the direction by requiring the promoter to inform both the home buyer and the Regulatory Authority, within two weeks from 10 November 2021, about completion of plastering and painting.

The decision is directly relevant to the named promoter and home buyer. It also explains the Tribunal's view that an earlier consumer complaint seeking different relief does not by itself prevent a home buyer from approaching the Regulatory Authority for possession.