Appeal No.22 of 2022
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Islands), in Appeal No.22 of 2022 delivered on 7 August 2023, dismissed Mr. Vishnukumar Balasubramanian’s appeal against M/s. Casa Grand Builder Private Limited. The Tribunal upheld the Tamil Nadu Real Estate Regulatory Authority’s dismissal of his refund complaint, but allowed him to take possession after paying the balance sale consideration.
What the case concerns
Appeal No.22 of 2022 before the Tamil Nadu Real Estate Appellate Tribunal concerned a buyer’s request for a refund after booking a flat in the project called “Casa Grande Monte Claro”. The buyer appealed against the Tamil Nadu Real Estate Regulatory Authority Single Member’s order dated 31 March 2022, which had dismissed his complaint.
The decision directly resolves the dispute between Mr. Vishnukumar Balasubramanian and M/s. Casa Grand Builder Private Limited. It is also relevant to buyers and promoters dealing with cancellation, unpaid balance consideration and possession after project completion.
Facts considered by the Tribunal
The Tamil Nadu Real Estate Appellate Tribunal recorded the following facts:
- The buyer booked the flat on 21 July 2015 and initially paid Rs.5,00,000.
- He paid a total of Rs.2,02,80,259 up to 16 June 2018 against a total flat cost of Rs.2,21,10,520.
- The promoter had agreed by email to deliver the apartment on or before 31 July 2019.
- The promoter shared the Chennai Metropolitan Development Authority completion certificate by email dated 20 September 2019. The buyer did not deny receiving it.
- The buyer cancelled the booking by letter dated 30 December 2019 and sought a refund with interest.
- Within ten days, on 10 January 2020, the buyer entered into an agreement for sale and a construction agreement with the promoter.
- The buyer did not pay the remaining sale consideration after entering into those agreements.
Tribunal’s findings
The Tamil Nadu Real Estate Appellate Tribunal found that entering into the agreements shortly after cancellation showed that the buyer had withdrawn his cancellation decision. It also found that the buyer could not demand possession without paying the balance amount.
The Tribunal concluded that the buyer was not entitled to the requested refund and found no reason to interfere with the dismissal of his complaint.
Practical outcome
Appeal No.22 of 2022 was dismissed. The Tribunal nevertheless stated that the buyer may take possession of the flat after paying the balance sale consideration, and that the promoter must hand over possession after receiving that balance.
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Common questions
Did the buyer receive the refund he requested?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed the appeal and held that the buyer was not entitled to the requested refund.
Can the buyer still take possession of the flat?
Yes. The Tribunal stated that the buyer may take possession after paying the balance sale consideration, and the promoter must hand over possession after receiving it.
Why did the Tribunal treat the cancellation as withdrawn?
The buyer entered into an agreement for sale and a construction agreement on 10 January 2020, within ten days of his cancellation letter. The Tribunal found that this showed he had changed his decision to cancel.
Did the Tribunal accept that the project had a completion certificate?
The Tribunal recorded that the promoter shared the Chennai Metropolitan Development Authority completion certificate by email dated 20 September 2019, and that the buyer did not deny this fact.
