Case law, Tamil Nadu land law
Common Order in Appeal Nos. 25 and 26 of 2022
The Tamil Nadu Real Estate Appellate Tribunal, Chennai, issued the Common Order in Appeal Numbers 25 and 26 of 2022 on 23 September 2022, dismissing two appeals filed by M/s. Homefinders Housing Limited against a refund and interest direction in favour of allottee Mrs. Santhi Pitchaiya Nattar. The appeals were dismissed because the promoter failed to deposit the entire amount directed by the Tribunal as the required pre-deposit.
What the case concerned
The Common Order in Appeal Numbers 25 and 26 of 2022 concerned two apartments allotted by M/s. Homefinders Housing Limited to Mrs. Santhi Pitchaiya Nattar in a housing project near Tindivanam, Villupuram Taluk.
Key facts recorded by the Tamil Nadu Real Estate Appellate Tribunal, Chennai, were:
- The construction agreement was executed on 7 June 2012.
- The total cost of the two apartments was fixed at Rs.21,00,000.
- The promoter agreed to hand over the apartments within 18 months from the agreement date.
- The allottee paid Rs.10,32,062 for each apartment, totalling Rs.20,64,124.
- The allottee sought withdrawal, refund, interest and compensation after the apartments were not handed over as agreed.
- The promoter claimed that construction was completed and the apartments were ready on 20 June 2014. It also claimed that Rs.58,603.50 remained payable for each apartment.
Direction challenged in the appeals
The Single Member of the Tamil Nadu Real Estate Regulatory Authority passed a common order in Complaint Numbers 92 and 93 of 2020 on 28 February 2022.
That decision directed the promoter to refund an aggregate amount of Rs.19,60,045 with interest at 10.05 per cent per year, after deducting the balance amount of Rs.1,17,207 payable to the promoter with interest at the same rate.
M/s. Homefinders Housing Limited challenged that decision through Appeal Numbers 25 and 26 of 2022.
Why the appeals were dismissed
The Tamil Nadu Real Estate Appellate Tribunal, Chennai, directed the promoter on 29 July 2022 to deposit the entire amount ordered by the Single Member of the Tamil Nadu Real Estate Regulatory Authority. Time was initially granted until 29 August 2022 and later extended until 22 September 2022.
On 23 September 2022:
- Nobody appeared for the promoter through video conferencing.
- The promoter sought permission through a memo to deposit only 30 per cent of the directed amount.
- The Tribunal rejected that request as contrary to its earlier direction and the Supreme Court judgment cited in the proceedings.
- Both appeals were dismissed for failure to make the entire pre-deposit required under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016.
- No costs were awarded, and any connected miscellaneous applications were closed.
Who is affected
The Common Order directly affects the promoter and allottee in these two apartment disputes. It also shows that a promoter appealing against a regulatory authority decision may lose the appeal for failing to comply with the Tribunal's pre-deposit direction.
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Common questions
Did the Tribunal decide whether the apartments were actually ready in 2014?
No final finding on that claim is recorded in the Common Order. The appeals were dismissed because the promoter did not deposit the entire amount directed by the Tribunal.
How much refund had the Tamil Nadu Real Estate Regulatory Authority directed?
The authority directed an aggregate refund of Rs.19,60,045 with interest at 10.05 per cent per year, after deducting Rs.1,17,207 payable to the promoter with interest at the same rate.
Why was the promoter's request to deposit only 30 per cent rejected?
The Tamil Nadu Real Estate Appellate Tribunal found that the request was contrary to its direction requiring deposit of the entire amount and contrary to the Supreme Court judgment cited in the proceedings.
Did the Tribunal award costs in Appeal Numbers 25 and 26 of 2022?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed both appeals without costs and closed any connected miscellaneous applications.
