Appeal No.28 of 2022
The Tamil Nadu Real Estate Appellate Tribunal, Chennai issued Appeal No.28 of 2022 on 30 September 2022, dismissing an appeal by M/s.Home Finders Housing Ltd. and M/s.L'amicale Club & Resort Pvt. Ltd. because they did not make the pre-deposit directed under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016. The appeal challenged a Tamil Nadu Real Estate Regulatory Authority order requiring a refund of Rs.65,34,910 with interest at 10.05 percent per year and Rs.25,000 towards litigation expenses.
What the case concerned
Appeal No.28 of 2022 concerned a villa project near Tindivanam in Villupuram District. The allottee, Mr.Jeganathan Tennis Missier, entered into a construction agreement with M/s.Home Finders Housing Ltd. and M/s.L'amicale Club & Resort Pvt. Ltd. on 15 August 2012.
The total villa cost, including the value of the undivided share, was Rs.1,06,36,000. The allottee paid Rs.65,34,910. The promoters had agreed to hand over the villa within 18 months, but the allottee alleged that they failed to do so and sought to withdraw from the project with a refund, interest and compensation.
Positions of the parties
The promoters argued that:
- The allottee had not paid the full sale consideration.
- After deducting proportionate Goods and Services Tax of Rs.2,56,100, the amount paid was Rs.62,78,810.
- Payment reminders were sent from March 2013 to June 2013.
- Construction was completed during December 2014 and the allottee was informed by registered letter dated 20 December 2014.
- The construction agreement was later terminated after legal notices were exchanged.
The promoters also referred to police and consumer proceedings involving the allottee.
Regulatory Authority decision
The Single Member of the Tamil Nadu Real Estate Regulatory Authority decided C.C.P.No.94 of 2020 on 21 April 2022. The promoters were directed to:
- Refund Rs.65,34,910 to the allottee.
- Pay interest at 10.05 percent per year.
- Pay Rs.25,000 towards litigation expenses.
The promoters challenged that decision before the Tamil Nadu Real Estate Appellate Tribunal, Chennai.
Why the appeal was dismissed
The Tamil Nadu Real Estate Appellate Tribunal, Chennai directed the promoters on 5 August 2022 to deposit the entire amount under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016. Time was initially granted until 9 September 2022 and later extended until 28 September 2022.
When compliance was considered on 30 September 2022:
- The promoters had not made the required pre-deposit.
- Neither the promoters nor their counsel appeared through video conferencing.
- The appeal was dismissed for non-compliance with Section 43(5).
- No costs were awarded, and any connected miscellaneous applications were closed.
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Common questions
Did the Tribunal decide whether the allottee or promoters were right on the underlying villa dispute?
The Tamil Nadu Real Estate Appellate Tribunal, Chennai dismissed the appeal because the promoters did not make the required pre-deposit. The order records the parties' arguments but bases the dismissal on non-compliance with Section 43(5).
What refund had the Tamil Nadu Real Estate Regulatory Authority directed?
The Single Member directed the promoters to refund Rs.65,34,910 with interest at 10.05 percent per year and pay Rs.25,000 towards litigation expenses.
Why did the promoters' appeal fail?
The promoters did not deposit the entire amount directed by the Tamil Nadu Real Estate Appellate Tribunal, Chennai under Section 43(5), even after receiving an extension of time. They and their counsel also did not appear through video conferencing when compliance was considered.
Does the decision affect every villa buyer in Tamil Nadu?
No. Appeal No.28 of 2022 concerns the named allottee, the two named promoters and a villa project near Tindivanam in Villupuram District.
