Case law, Tamil Nadu land law
Appeal No.19 of 2022
The Tamil Nadu Real Estate Appellate Tribunal for Tamil Nadu, Puducherry, Andaman and Nicobar Islands issued its decision in Appeal No.19 of 2022 on 11 November 2022. It allowed the landowners’ appeal and set aside the Tamil Nadu Real Estate Regulatory Authority order in C.No.181 of 2021 dated 21 March 2022, which had directed them to register an alternative plot for a buyer without further payment.
What the appeal concerned
Appeal No.19 of 2022 concerned land at Pudupakkam Village, Thiruporur Taluk, Chenglepet District. The appellants, M. Little Flower and C.S. Surya, said that T. Munna Basha of M/s. Chennai Construction had proposed developing their land into villa plots. They stated that no sale agreement or power of attorney was executed in his favour.
R. Selvakumar claimed that he had been allotted plot No.8 in the Green Apple housing project and had paid for the plot. After learning that plot No.8 had been sold to another person, he sought registration of that plot or another plot of the same extent.
The Tamil Nadu Real Estate Regulatory Authority directed the landowners to execute a sale deed for another plot of the same extent by 31 May 2022 without demanding additional payment. The landowners appealed against that direction.
Tribunal findings
The Tamil Nadu Real Estate Appellate Tribunal found that:
- R. Selvakumar admitted paying Rs.11,00,000 to T. Munna Basha rather than to the landowners.
- His proof affidavit contained inconsistent statements about an alleged Rs.31,00,000 payment to the landowners.
- No document was produced to prove that the Rs.31,00,000 had been paid to the landowners.
- No valid power of attorney established that T. Munna Basha was acting as the landowners’ agent.
- Possession of copies of title deeds and their use for a housing loan were not sufficient by themselves to establish an agency relationship.
- The earlier complaints by three other purchasers concerned permission to continue villa construction and involved different facts.
- The disputed signatures were compared with signatures in other agreements rather than with admitted signatures from the relevant period.
Result and practical effect
Appeal No.19 of 2022 was allowed, and the Tamil Nadu Real Estate Regulatory Authority order in C.No.181 of 2021 dated 21 March 2022 was set aside. The Tribunal held that the landowners were not required to execute a sale deed in favour of R. Selvakumar because payment to them and a valid agency relationship had not been proved. No costs were awarded.
The decision directly affects the parties to the disputed Green Apple plot transaction. It records that payment made to the developer did not, on the evidence in this case, require the landowners to transfer their property.
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Common questions
Did the Tribunal require the landowners to register another plot for the buyer?
No. The Tamil Nadu Real Estate Appellate Tribunal set aside the direction requiring the landowners to execute a sale deed for another plot of the same extent.
Why did the buyer’s payment to the developer not bind the landowners?
The buyer failed to prove payment of the purchase price to the landowners. The Tribunal also found that no valid power of attorney established the developer as their agent.
What did the Tribunal say about the disputed signatures?
The Tribunal found that the disputed signatures had been compared with signatures in other agreements rather than with admitted signatures from the relevant period.
Were any legal costs awarded in Appeal No.19 of 2022?
No. The Tamil Nadu Real Estate Appellate Tribunal allowed the appeal with no costs.
