case law

Appeal No. 86 of 2021

The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Islands), in Appeal No. 86 of 2021 dated 9 February 2022, records an appeal concerning a promoter’s sale of an apartment corridor as private property and the Regulatory Authority’s directions regarding that sale, project registration and corpus funds. The supplied text identifies the issues considered by the Tribunal but does not include its final decision on the appeal.

Category
Tribunal and court orders
Effective
1 January 2021
Pages
26
Status
In force
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What the appeal concerns

Appeal No. 86 of 2021 before the Tamil Nadu Real Estate Appellate Tribunal concerns Tulive Viha Apartments. The promoter sold an approximately 230 square foot corridor on the fourth floor to the owners of Apartments 401 and 402. Other home buyers argued that the corridor was a common area belonging to the apartment owners’ association and could not be sold privately.

The appeal was filed by the two purchasers of the corridor. The promoter did not appeal against the Regulatory Authority’s decision.

Regulatory Authority directions under challenge

The Regulatory Authority, in C.No.1/2020 dated 19 April 2021, made the following findings and directions:

  • The project had to be registered.
  • The sale of the common area was null and void.
  • The promoter had to execute a rectification deed deleting the common area from the appellants’ original sale deed.
  • The promoter had to refund the sale consideration of Rs.17.25 lakhs to the appellants.
  • A penalty of Rs.5,00,000 was imposed on the promoter.
  • The promoter had to transfer the corpus fund to the apartment owners’ association with interest at 9.30 per cent.

Questions considered by the Tribunal

The Tamil Nadu Real Estate Appellate Tribunal listed five main questions:

  • Whether the promoter’s sale of the corridor was legally sustainable.
  • Whether an individual allottee could complain after an allottees’ association had been formed.
  • Whether the complaint was barred because an attempted amicable settlement had not been completed.
  • Whether the appeal should be allowed.
  • Whether the direction to execute a rectification deed was legally sustainable.

The appellants argued that the association and a mediation committee should have handled the corridor dispute. The opposing home buyers argued that mediation could not correct an illegal sale of common area and that directly affected allottees could approach the Regulatory Authority.

Importance of the corridor

The Tamil Nadu Real Estate Appellate Tribunal referred to the National Building Code of India 2016 provisions on internal corridors. The quoted material treats corridors as circulation and accessible routes, with requirements concerning unobstructed width, wheelchair turning space, clear height, stable and slip-resistant floors, and the avoidance of obstacles.

The supplied text ends during that discussion. It does not state whether the appeal was ultimately allowed or dismissed.

This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.

Common questions

Can a promoter sell an apartment corridor to individual flat owners?

The Regulatory Authority found that the corridor sale in this case was null and void. The supplied text shows that the Tribunal was considering whether that finding was legally sustainable, but it does not provide the final decision.

What was the promoter directed to refund?

The Regulatory Authority directed the promoter to refund Rs.17.25 lakhs, described as the sale consideration, to the appellants.

Can an individual allottee complain after an apartment owners’ association is formed?

That was one of the specific questions placed before the Tamil Nadu Real Estate Appellate Tribunal. The supplied text records arguments from both sides but does not include the Tribunal’s final answer.

Was the promoter ordered to transfer the corpus fund?

Yes. The Regulatory Authority directed the promoter to transfer the corpus fund to the apartment owners’ association with interest at 9.30 per cent.