A.No.21 of 2022, Alliance Villas Private Limited appeal
The Tamil Nadu Real Estate Appellate Tribunal, Chennai issued the order in A.No.21 of 2022 on 5 August 2022, setting aside the Adjudicating Officer’s order in CCP 60 of 2020 dated 14 December 2021. The Tribunal restored the complaint for a fresh hearing so that the refund and compensation claims could be separated and decided by the appropriate bodies.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal, Chennai considered an appeal by Alliance Villas Private Limited against two allottees, Mr. S. Dominic Savio and Mrs. D. Clotine Marie. The appeal challenged an order made by the Adjudicating Officer in CCP 60 of 2020.
The Adjudicating Officer had directed the promoter to:
- Refund Rs.93,26,565 paid towards construction costs, with interest at 10.20% per year.
- Refund Rs.8,00,086 paid towards home loan insurance, with interest at 10.20% per year.
- Pay lump sum compensation of Rs.5,00,000.
- Pay Rs.25,000 towards litigation expenses.
What the Tribunal decided
The Tamil Nadu Real Estate Appellate Tribunal, Chennai relied on the Supreme Court judgment in M/s. New Tech Promoters and Developers Private Limited versus State of Uttar Pradesh and others. It concluded that the Adjudicating Officer could decide compensation, but did not have power to direct refund or interest on the refund.
The Tribunal therefore found that the Adjudicating Officer’s decision had been made without jurisdiction and could not be enforced. It ordered that:
- The order in CCP 60 of 2020 dated 14 December 2021 be set aside.
- CCP 60 of 2020 be restored before the Adjudicating Officer.
- Notice be issued to both parties.
- Both parties be given an opportunity to be heard.
- The refund and compensation claims be considered for separation and decided afresh according to the Supreme Court’s directions.
Effect on the parties
A.No.21 of 2022 does not finally decide whether the allottees are entitled to refund or compensation. It sends the complaint back for fresh consideration, with refund and compensation handled within the separate powers identified by the Supreme Court.
The Tribunal stated that refund must be decided by the Regulatory Authority, while the Adjudicating Officer has power to determine compensation. It also held that Alliance Villas Private Limited was not required at that stage to deposit the amounts awarded by the Adjudicating Officer before the Tribunal. The appeal was disposed of and the connected miscellaneous applications were closed.
Relevance to other buyers and promoters
A.No.21 of 2022 shows how a complaint combining refund and compensation may be handled. A combined complaint can be separated at the appropriate stage because refund and compensation are decided through different forms of adjudication under the Real Estate (Regulation and Development) Act, 2016.
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
Did the Tribunal confirm the refund awarded to the allottees?
No. The Tamil Nadu Real Estate Appellate Tribunal, Chennai set aside the Adjudicating Officer’s decision and restored the complaint for fresh consideration.
Who can decide a claim for refund and interest?
The Tribunal stated, based on the Supreme Court judgment, that the Regulatory Authority has the power to decide refund and interest on the refund.
Who can decide compensation under the Real Estate Act?
The Tribunal stated that the Adjudicating Officer has the power to determine compensation.
Was Alliance Villas Private Limited required to deposit the awarded amounts for this appeal?
No. Because the matter was sent back for segregation and fresh disposal, the Tribunal held that the promoter did not need to deposit those amounts before the Tribunal at that stage.
