Common Order, Appeal Nos. 38 and 63/2021

What the appeals concern

The Common Order in Appeal Numbers 38 and 63 of 2021 concerns Flat F3 in Plot A at Kumaran Kudil Annexe, 6th Street, Okiyam Thoraipakkam Village, Sholinganallur Taluk, Kanchipuram District. The flat has a stated built up area of 936 square feet and an undivided land share of 468 square feet from a total extent of 3,010 square feet.

The home buyers and builder or promoter entered into a construction agreement on 4 June 2018. It was registered on 20 September 2018, when an undivided share sale deed was also executed in favour of the home buyers. The total price for the flat and land share was Rs.40,00,000.

Payment and possession dispute

The dispute before the Tamil Nadu Real Estate Appellate Tribunal arose after possession was not handed over. The source records the following:

• The home buyers paid Rs.35,00,000 towards the flat.
• They paid Rs.4,00,000 for additional works.
• A balance sale consideration of Rs.5,00,000 remained unpaid.
• The promoters also referred to costs for shifting an electric transmitter, stamp duty, incidental expenses and agreed cheque amounts.

The home buyers complained to the Regulatory Authority seeking project registration, delivery of the flat and other reliefs. The Regulatory Authority directed the builder or promoter and land owner or promoter to register the project jointly and hand over the flat.

Main issues raised in the appeals

Appeal Numbers 38 and 63 of 2021 raise these principal questions:

• Whether the project falls outside the registration requirement because it was described by the promoters as a standalone development of 3,010 square feet, or 279 square metres, containing six apartments.
• Whether the development was instead part of a group scheme involving five named projects, 26 flats and a larger combined land area.
• Whether the Regulatory Authority could direct that the land owner be added as a party.
• Whether possession could be ordered before the home buyers paid the full sale consideration.

The home buyers described Grand Melody, Grand Symphony, Grand Harmony, Grand Rhyme and Grand Rhythm as one group development. The promoters maintained that the plots had separate sale deeds and building approvals and were developed separately.

Status shown by the supplied text

The supplied extract ends while the Tamil Nadu Real Estate Appellate Tribunal is analysing the jurisdiction issue. It does not include the Tribunal’s final findings or state whether either appeal was allowed or dismissed.