A. No. 78 of 2021
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued its order in Appeal Number 78 of 2021 on 20 April 2022 concerning compensation, interest and costs awarded to two flat buyers for delayed possession by M/s. VGN Property Developers Private Limited. The supplied text records the Tribunal's findings about the parties' 2018 unregistered agreement and disputed 2019 registered agreement, but ends before the Tribunal's final decision on the appeal.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered an appeal by M/s. VGN Property Developers Private Limited against an Adjudicating Officer's order dated 25 February 2021. That order directed the promoter to pay compensation, interest and costs to AR. Arun Ramesh and M. Jaya Priya.
The buyers had booked Unit Number 204 on the second floor of Block D in the VGN Temple Town project at Thiruverkadu Village, Poonamallee Taluk. The dwelling unit measured 1,444 square feet and included 661 square feet of undivided land. The stated total price was Rs.55,35,834, and the buyers also paid Rs.68,558 for alterations.
The dispute
The parties disagreed about the agreed completion date and the significance of two agreements:
- The buyers relied on an unregistered agreement dated 22 March 2018. They said possession was due before December 2018 after the agreed grace period.
- The promoter relied on a registered agreement executed on 3 May 2019 and registered on 6 May 2019. It argued that possession was due during September 2019.
- Possession was handed over on 9 October 2019.
- The buyers said they were required to provide a no claim letter before receiving possession and filed their complaint on 15 October 2019.
Tribunal's recorded findings
The Tamil Nadu Real Estate Appellate Tribunal recorded the following findings in the supplied extract:
- The promoter had admitted the existence of the agreement dated 22 March 2018 in its counter affidavit.
- A guarantee given to HDFC Limited during March 2018 referred to that agreement, showing that the parties had acted upon it.
- A consolidated receipt showed that more than Rs.53 lakh had been paid on various dates from 23 July 2017 to 4 May 2018, with Rs.2,76,792 paid on 9 October 2019.
- The Tribunal found the completion wording in the registered agreement dated 3 May 2019 improbable because it referred to completion by March 2019, before that agreement was executed.
- The Tribunal described the 2019 registered agreement as a camouflage document obtained for the promoter's convenience and with an ulterior motive.
The extract ends while discussing the promoter's duty under the Real Estate (Regulation and Development) Act, 2016. It does not contain the final ruling allowing or dismissing the appeal.
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Common questions
Did the buyers receive possession of the VGN Temple Town flat?
Yes. The source states that possession was handed over on 9 October 2019.
Why did the promoter challenge the compensation award?
The promoter argued that the Adjudicating Officer wrongly relied on the unregistered agreement dated 22 March 2018 instead of the registered agreement dated 3 May 2019 when calculating the delay.
Did the Tribunal accept that the 2018 agreement had been acted upon?
Yes. The Tribunal relied on the promoter's admission, the guarantee referring to the agreement and payments made during 2017 and 2018.
Was the promoter's appeal allowed or dismissed?
The supplied text ends before the final decision. It therefore does not show whether Appeal Number 78 of 2021 was allowed or dismissed.
