M.A.No.41 of 2021 in Appeal No. 33 of 2021
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry, Andaman and Nicobar Islands, issued M.A.No.41 of 2021 in Appeal No. 33 of 2021 on 29 September 2021. It directed M/s. Ozone Projects Private Limited to deposit Rs.49,602.96 by 5 October 2021 as the net amount payable to home buyer Mrs. Nirmala Ramesh, failing which the miscellaneous application would be dismissed.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered a pre-deposit application by M/s. Ozone Projects Private Limited in its appeal against the Adjudicating Officer's order in C.C.P.No.300/2019 dated 18 December 2020. The dispute involved compensation payable by the promoter to Mrs. Nirmala Ramesh and outstanding sale consideration payable by the home buyer to the promoter.
The promoter asked the Tribunal to waive the pre-deposit condition, arguing that no amount remained payable after adjusting the parties' liabilities.
Tribunal's calculation
The Tamil Nadu Real Estate Appellate Tribunal found that calculations submitted by both parties used incorrect or different interest periods. It fixed 5 October 2021 as the payment date and calculated interest for 1,064 days from 7 November 2018.
The Tribunal calculated the parties' liabilities as follows:
- The promoter's delay compensation was Rs.22,75,155.
- Interest on that compensation was Rs.5,96,893.36.
- Compensation for mental agony was Rs.5,00,000.
- Litigation expenses were Rs.25,000.
- The promoter's total liability to the home buyer was Rs.33,97,048.36.
- The home buyer's outstanding sale consideration was Rs.26,51,749.
- Interest on that amount was Rs.6,95,696.40.
- The home buyer's total liability to the promoter was Rs.33,47,445.40.
- After adjustment, the promoter owed the home buyer Rs.49,602.96.
The Tribunal rejected the promoter's attempt to use a higher outstanding principal of Rs.29,69,416 because the Adjudicating Officer had fixed the amount at Rs.26,51,749 and the promoter had not appealed against that finding.
Direction and practical effect
M.A.No.41 of 2021 in Appeal No. 33 of 2021 required M/s. Ozone Projects Private Limited to deposit Rs.49,602.96 on or before 5 October 2021 as a condition for the appeal to be entertained. If payment was made earlier, the promoter could reduce proportionate interest for the days paid in advance.
The Tribunal stated that failure to deposit the amount by the deadline would result in dismissal of the miscellaneous application. The decision directly concerns these parties, but it also shows how the Tribunal may adjust mutual monetary liabilities when determining a promoter's pre-deposit obligation.
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Common questions
How much was the promoter required to deposit?
M/s. Ozone Projects Private Limited was directed to deposit Rs.49,602.96 on or before 5 October 2021.
Why did the Tribunal not waive the pre-deposit completely?
After adjusting the promoter's total liability of Rs.33,97,048.36 against the home buyer's total liability of Rs.33,47,445.40, the Tribunal found that Rs.49,602.96 remained payable by the promoter.
What would happen if the promoter did not deposit the amount by the deadline?
The miscellaneous application would stand dismissed if the promoter failed to deposit Rs.49,602.96 by 5 October 2021.
Could the promoter reduce the amount by paying before 5 October 2021?
Yes. The Tribunal allowed the promoter to reduce proportionate interest for the days by which payment was made before 5 October 2021.
