Case law, Tamil Nadu land law
Common Order, Appeal Nos. 31 and 32 of 2022
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands), through its Common Order in Appeal Nos. 31 and 32 of 2022 dated 10 March 2023, allowed the appeals by M/s. Sameeraa Foundation Private Limited. The Tribunal set aside the Tamil Nadu Real Estate Regulatory Authority Adjudicating Officer's orders dated 31 March 2022 and recalled the recovery warrant because the Adjudicating Officer lacked power to execute the part of the award concerning refund and interest.
What the case concerns
The Common Order in Appeal Nos. 31 and 32 of 2022 concerns a residential layout on 52.55 acres at Vengambakkam village, Tambaram Taluk, Chengalpet District. The landowner, M/s. Sameeraa Foundation Private Limited, appointed M/s. BBCL Properties Private Limited to develop the approved layout, initially named BBCL Auracity and later renamed Sameera Grand City.
Two allottees purchased plot number 267 and paid development charges. Following a dispute between the landowner and developer, they sought refund, interest and compensation before the Adjudicating Officer attached to the Tamil Nadu Real Estate Regulatory Authority.
Earlier award and execution
The Adjudicating Officer ordered the landowner and developer to pay jointly and severally:
- Rs.19,68,363 as refund of the sale consideration and development charges, with interest at 8.05 per cent from the respective payment dates.
- Rs.1,71,050 towards registration expenses.
- Rs.2,00,000 as compensation for mental agony.
- Rs.25,000 towards litigation expenses.
Earlier appeals against that award were dismissed on 21 January 2022 for noncompliance with the statutory predeposit requirement. During execution, the Adjudicating Officer directed issue of a recovery warrant and its transmission to the District Collector, Chennai, for recovery under the Revenue Recovery Act.
Tribunal's decision
The Tamil Nadu Real Estate Appellate Tribunal relied on the Supreme Court's decision in M/s. Newtech Promoters and Developers Private Limited versus State of Uttar Pradesh and others. It held that:
- The Regulatory Authority determines complaints seeking refund, interest on refund, interest for delayed possession, and penalty with interest.
- The Adjudicating Officer determines compensation and interest on compensation.
- After the Supreme Court ruling, the Adjudicating Officer could not execute an order concerning refund and interest.
- The execution order dated 31 March 2022 was therefore made without jurisdiction.
The Tribunal allowed both appeals, set aside the orders in Execution Petition No. 48 of 2021 and E.A.S.R. No. 10 of 2022, and recalled the recovery warrant.
Effect on the parties
The allottees may file separate fresh execution petitions before the Tamil Nadu Real Estate Regulatory Authority or the appropriate Adjudicating Officer in accordance with the Supreme Court ruling. Any fresh petitions must be heard and decided within four weeks of filing, and M/s. Sameeraa Foundation Private Limited may contest them.
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Common questions
Did the Tribunal cancel the recovery warrant against the landowner?
Yes. The Tamil Nadu Real Estate Appellate Tribunal recalled the recovery warrant issued by the Adjudicating Officer.
Did the allottees lose the right to recover their money?
No. The Tribunal allowed them to file separate fresh execution petitions before the Tamil Nadu Real Estate Regulatory Authority or the appropriate Adjudicating Officer in accordance with the Supreme Court ruling.
Who can decide a claim for refund and interest under this ruling?
The Tribunal stated that the Regulatory Authority has the power to decide refund, interest on refund, interest for delayed possession, and penalty with interest. The Adjudicating Officer has power to determine compensation and interest on compensation.
How quickly must any fresh execution petitions be decided?
The Tamil Nadu Real Estate Regulatory Authority or the concerned Adjudicating Officer must enquire into and dispose of fresh execution petitions within four weeks of filing.
