Case law, Tamil Nadu land law
Appeal No. 88 of 2021, M/s. Emami Realty Ltd. v. Tejomaya Owners Association
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued its order in Appeal No. 88 of 2021 on 8 September 2021, permitting M/s. Emami Realty Limited to withdraw its appeal against Tejomaya Owners Association. The appeal was dismissed as withdrawn, with liberty for the appellant to produce relevant documents before the Regulatory Authority, and the connected miscellaneous application was closed.
What the case concerned
Appeal No. 88 of 2021 arose from a complaint seeking 28 reliefs against a promoter. The complaint also requested an interim restraint preventing adjustment of increased common area maintenance charges against Goods and Services Tax input tax credit or the corpus fund until the Regulatory Authority passed final orders.
The requested restraint was linked to the allegation that maintenance of the common areas had not yet been handed over to the association of allottees.
Regulatory Authority decision
The Regulatory Authority, in C.No.166/2021 dated 28 July 2021, restrained the promoter from adjusting its claim for increased common area maintenance charges against Goods and Services Tax input tax credit or the corpus fund until final orders were passed.
M/s. Emami Realty Limited challenged that interim decision before the Tamil Nadu Real Estate Appellate Tribunal. The appeal was taken on file on 18 August 2021.
Tribunal outcome
The Tamil Nadu Real Estate Appellate Tribunal recorded the following points:
- At the first hearing on 1 September 2021, counsel for M/s. Emami Realty Limited sought time to obtain instructions about withdrawing the appeal.
- At the hearing on 8 September 2021, counsel sought permission to withdraw and filed a withdrawal memo.
- The Tribunal permitted the withdrawal and dismissed Appeal No. 88 of 2021 as withdrawn.
- M/s. Emami Realty Limited retained liberty to produce relevant documents before the Regulatory Authority.
- The connected miscellaneous application was closed.
The Tribunal did not decide the merits of the challenge to the interim restraint. The Regulatory Authority proceedings, including consideration of the complaint and relevant documents, were left to continue before that authority.
Who may be affected
Appeal No. 88 of 2021 directly concerns M/s. Emami Realty Limited and Tejomaya Owners Association. It may also be useful to promoters and allottee associations dealing with disputes over common area maintenance charges, Goods and Services Tax input tax credit, corpus funds, or the handover of common area maintenance. The decision records a withdrawal rather than a final ruling on those wider issues.
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Common questions
Did the Tamil Nadu Real Estate Appellate Tribunal decide whether the maintenance charge adjustment was lawful?
No. Appeal No. 88 of 2021 was dismissed as withdrawn, so the Tribunal did not decide the merits of the challenge.
What had the Regulatory Authority stopped the promoter from doing?
The Regulatory Authority restrained the promoter from adjusting increased common area maintenance charges against Goods and Services Tax input tax credit or the corpus fund until final orders were passed.
Can M/s. Emami Realty Limited still submit documents?
Yes. The Tamil Nadu Real Estate Appellate Tribunal expressly allowed M/s. Emami Realty Limited liberty to produce relevant documents before the Regulatory Authority.
What happened to the connected miscellaneous application?
The connected miscellaneous application was closed when Appeal No. 88 of 2021 was dismissed as withdrawn.
