Appeal No.20 of 2022, Srinivasan Kesavachari v M/s Real Value Promoters Pvt Ltd

What the appeal concerned

Appeal No.20 of 2022 arose from an apartment buyer's complaint against M/s Real Value Promoters Pvt. Ltd. Srinivasan Kesavachari stated that:

• He paid an advance of Rs.12,41,178 under agreements dated 25 September 2013 for the sale of an undivided share of land and construction of an apartment.
• The apartment price was fixed at Rs.33,33,797, apart from other charges.
• He obtained a loan from the State Bank of India and was paying interest.
• The promoter had agreed to complete construction and hand over the apartment within the stated contractual period, including a six month grace period.
• Construction had not commenced despite telephone calls and emails.
• He requested a refund by email dated 23 June 2015 but received no response.

The complaint sought refund of the advance with interest at 12 per cent per year and Rs.15,00,000 as compensation for mental agony.

Why the complaint had been dismissed

The Single Member of the Tamil Nadu Real Estate Regulatory Authority, Chennai, dismissed C.C.P.No.60 of 2021 on 24 February 2022 because the complainant did not appear for hearings. The records showed that the complainant and respondent were absent and that video links had been sent to the complainant for hearings on 19 January 2022 and 24 February 2022.

The complainant appealed, explaining that he lived in Canada, his previous counsel had withdrawn, and he was looking for another advocate. He also referred to Covid 19 travel restrictions and the time difference between India and Canada.

Tribunal's decision and practical effect

The Tamil Nadu Real Estate Appellate Tribunal, Chennai, considered the circumstances, including difficulties serving the respondent and the fact that the case concerned an advance paid under a 2013 agreement. Notice in the appeal was published in Tamil and English newspapers after registered post was returned, but the respondent remained absent.

The tribunal:

• Allowed Appeal No.20 of 2022.
• Set aside the dismissal dated 24 February 2022.
• Required the appellant to deposit Rs.5,000 in the Tamil Nadu Chief Minister's Relief Fund by 7 October 2022.
• Directed that the appeal would automatically stand dismissed if the deposit was not made by that date.
• Directed restoration of the complaint after proof of deposit was filed.
• Directed the Single Member to hear both sides and dispose of the complaint within three months from restoration.

The ruling restored the opportunity to pursue the complaint. It did not award the refund, interest or compensation claimed by the buyer.