Common Order in Appeal Nos. 5 & 6 of 2021
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands) issued the Common Order dated 20 September 2021 in Appeal Nos. 5 and 6 of 2021, dismissing both appeals filed by M/s. Ozone Projects Private Limited because it failed to complete the required pre-deposit. The decision directly concerns two flat purchasers, Yogi Saraf and Rinku Saraf, whose complaints had resulted in directions for refund, interest, compensation and litigation expenses.
What the case concerns
The Common Order dated 20 September 2021 was issued by the Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands) under the Real Estate (Regulation and Development) Act, 2016. M/s. Ozone Projects Private Limited filed Appeal Nos. 5 and 6 of 2021 against Yogi Saraf and Rinku Saraf.
The two purchasers had each booked a flat, entered into a construction agreement and paid Rs.70,60,954.68 for each flat. According to the Common Order, the developer failed to comply with the construction agreements.
Earlier complaints and directions
The Adjudicating Officer considered separate complaints in C.C.P. Nos. 305 and 306 of 2019. The developer did not file its counter or evidence despite being given sufficient time.
Based on the available records, the Adjudicating Officer directed the developer to:
- Refund the amounts paid by the purchasers.
- Pay interest.
- Pay compensation.
- Pay litigation expenses.
M/s. Ozone Projects Private Limited challenged those directions through the two appeals.
Pre-deposit requirement
The Tamil Nadu Real Estate Appellate Tribunal ordered the developer on 20 January 2021 to deposit 30 per cent of the total amount ordered in each case. The Tribunal granted time for compliance on several listed dates and later directed the developer to pay the balance on or before 19 September 2021.
The developer deposited only part of the required amount. The balance remained unpaid on 20 September 2021, and there was no representation for the developer when the matters were taken up.
Result and practical effect
The Tamil Nadu Real Estate Appellate Tribunal dismissed the applications under Section 43(5) and dismissed both appeals for non-compliance with the pre-deposit direction. No costs were awarded, and the connected miscellaneous applications were closed.
The Common Order also states that any amount already deposited will be refunded to the purchaser or respondent if a necessary application is filed after the appeal time is over. The decision is specific to M/s. Ozone Projects Private Limited, Yogi Saraf and Rinku Saraf, but it shows that failure to complete an ordered pre-deposit can result in dismissal of an appeal.
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Common questions
Why were the developer's appeals dismissed?
The Tamil Nadu Real Estate Appellate Tribunal dismissed Appeal Nos. 5 and 6 of 2021 because the developer deposited only part of the required 30 per cent and did not pay the balance despite repeated extensions.
What had the Adjudicating Officer ordered for the flat purchasers?
The Adjudicating Officer directed the developer to refund the amounts paid by the purchasers, together with interest, compensation and litigation expenses.
Can the purchasers receive the amount already deposited by the developer?
Yes. The Common Order states that the amount already deposited will be refunded to the purchaser or respondent if a necessary application is filed after the appeal time is over.
Does the Common Order apply to every buyer dealing with M/s. Ozone Projects Private Limited?
The Common Order directly decides only Appeal Nos. 5 and 6 of 2021 involving M/s. Ozone Projects Private Limited, Yogi Saraf and Rinku Saraf.
