Common Order in Appeal Nos. 3 and 4 of 2022
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued the Common Order in Appeal Nos. 3 and 4 of 2022 on 11 November 2022. The appeals concern compensation awarded to a buyer of a flat in the VIHA project, including compensation for delayed possession, apartment area shortage, defects, maintenance charges, mental agony and legal expenses, but the supplied text ends before the Tribunal’s final decision.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered connected appeals between M/s G.K.S. Technology Park Limited and flat buyer Mrs. T. Aananthi. The dispute relates to Flat No. D-101 in the VIHA project at V.O.C. Colony, Anna Nagar East, Chennai.
The promoters filed Appeal No. 3 of 2022 against a compensation order made by the Adjudicating Officer of the Tamil Nadu Real Estate Regulatory Authority. The buyer filed Appeal No. 4 of 2022 seeking increased compensation.
Earlier compensation award
The Adjudicating Officer had awarded the buyer:
- Interest at 10.35 percent per year on Rs.1,42,50,000, calculated from the respective payment dates until possession was handed over.
- Rs.1,48,000 for shortage in the apartment’s extent.
- Rs.50,000 for rectification of defects.
- Rs.22,867 towards maintenance charges.
- Rs.5,00,000 for mental agony.
- Rs.25,000 for legal expenses.
The buyer sought Rs.25,00,000 as increased compensation for mental agony and Rs.3,00,000 for loss of enjoyment, in addition to compensation under the other heads.
Main issues considered
The Tribunal identified two questions:
- Whether the buyer alone could be held responsible for delayed payment when a tripartite agreement existed between the buyer, promoter and State Bank of India.
- Whether delay in handing over possession, by itself, entitled the buyer to compensation in the circumstances.
The tripartite agreement required the builder, after receiving 50 percent of the consideration, to execute the sale deed and deliver it with the original registration fee receipt directly to State Bank of India. It also provided for stage based loan payments subject to conditions.
The Tribunal observed that the promoters should have approached State Bank of India properly for stage based payments instead of demanding payment and interest at 18 percent per year from the buyer. However, the supplied source stops during the Tribunal’s discussion and does not contain the final findings or directions. It therefore does not establish whether either appeal was allowed, dismissed or modified.
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Common questions
Does this text show whether the buyer finally received compensation?
No. It records the earlier compensation award and the issues considered on appeal, but the supplied text ends before the Tamil Nadu Real Estate Appellate Tribunal’s final decision.
What property was involved in the appeals?
The dispute concerned Flat No. D-101 in the VIHA project at No. 13, V.O.C. Colony, Anna Nagar East, Chennai.
Why was the tripartite agreement important?
It required the builder to execute the sale deed after receiving 50 percent of the consideration and deliver the registered deed and original registration fee receipt directly to State Bank of India. It also supported stage based release of the housing loan.
Did the Tribunal accept the promoter’s demand for 18 percent annual interest?
The Tribunal stated that the promoters unnecessarily demanded payments with interest at 18 percent per year instead of appropriately approaching State Bank of India for stage based payments. The supplied text does not include the final ruling on liability.
