Appeal No. 58 of 2021, D.K. Bhagavathi Nath and others v. M/s. BBCL Shrishti Homes LLP
The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal No. 58 of 2021 on January 10, 2022, reviewing home buyers’ challenge to the compensation awarded for delayed possession of a villa and failure to provide promised gated community features. The Tribunal confirmed delay interest at 10.05 per cent per year and dismissed applications from both sides to introduce additional evidence, while the supplied text does not include its final decision on the amount awarded for mental agony.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered an appeal by D.K. Bhagavathi Nath, B. Rajalakshmi and T.S. Manohar against M/s. BBCL Shrishti Homes LLP. The home buyers had paid Rs.1,67,34,700 for a villa that was promised by January 2016, with a six month grace period, but possession was handed over only on August 18, 2018.
The buyers also complained that promised amenities were unfinished and that a compound wall presented as part of a gated community was demolished by Kundrathur Panchayat. The Panchayat stated that the wall stood within land gifted to it.
Earlier compensation award
The Adjudicating Officer had partly allowed the buyers’ complaint and awarded:
- Delay compensation on the total consideration at 10.05 per cent per year, covering the delay from August 2016 to August 2018.
- Rs.5,00,000 for mental agony arising from breached promises, demolition of the compound wall and unfinished amenities and facilities.
- Rs.20,000 towards litigation expenses.
The home buyers appealed mainly against the amount of compensation. The Tribunal noted that they did not challenge the Adjudicating Officer’s underlying findings, so the appeal had a limited scope.
Tribunal findings in the supplied text
The Tamil Nadu Real Estate Appellate Tribunal found that the prescribed interest rate was the State Bank of India highest marginal cost of lending rate plus two per cent. It confirmed the Adjudicating Officer’s use of the then current rate of 10.05 per cent per year, noting that the buyers did not claim that the rate was legally incorrect.
The Tribunal also dismissed M.A. No. 183 of 2021 and M.A. No. 194 of 2021, filed by the promoter and home buyers respectively, because the proposed additional evidence was not relevant to deciding the appeal.
Relevance for buyers and promoters
Appeal No. 58 of 2021 shows that a buyer who remains in a project may receive interest for every month of delayed possession. It also shows that promises in a project brochure, including gated community features and exclusive internal roads, may be considered when assessing a promoter’s obligations. The supplied extract begins reviewing the Rs.5,00,000 mental agony award but ends before recording the Tribunal’s final conclusion on that issue or the appeal as a whole.
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Common questions
Did the Tribunal change the delay interest rate?
No. The Tamil Nadu Real Estate Appellate Tribunal confirmed delay interest at 10.05 per cent per year on the total consideration paid.
Why did the home buyers file the appeal?
They mainly challenged the amount of compensation awarded after delayed possession, demolition of the compound wall and failure to provide promised amenities.
Did the Tribunal accept new evidence from either side?
No. It dismissed the additional evidence applications filed by both the promoter and the home buyers because they were not relevant to deciding the appeal.
Does the supplied text state the final outcome of the entire appeal?
No. It confirms the delay interest rate and dismisses the additional evidence applications, but it ends while discussing compensation for mental agony and does not provide the final disposition.
