Case law, Tamil Nadu land law

Appeal No.33 of 2022

In force

The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Islands) issued its order in Appeal No.33 of 2022 on 3 November 2023 under the Real Estate (Regulation and Development) Act, 2016. It considers Srinivasan Govindarajan's challenge to parts of an Adjudicating Officer's decision concerning delayed possession, construction defects, water charges, lost rent, interest and mental agony in the Casa Grand Asta project. The supplied extract records the facts, arguments and part of the Tribunal's analysis, but does not contain the final decision on the appeal.

CategoryTribunal and court orders
Effective1 January 2022
Pages14
StatusIn force
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What the dispute concerns

Appeal No.33 of 2022 concerns Apartment C-107 in the Casa Grand Asta project at Korattur, Chennai. Srinivasan Govindarajan booked the apartment from M/s. Casa Grande Shelter LLP, and the parties entered into a Construction Agreement on 20 March 2019. The agreement stated that the apartment should be handed over by August 2019.

The allottee argued that the apartment was made available on 18 September 2020 only for interior work, without water, electricity, sewage and other common amenities. He said that these shortcomings prevented him from living in or renting out the apartment. The promoter said construction was completed in January 2020, the Completion Certificate was obtained on 14 July 2020 after pandemic-related delay, and possession was formally handed over on 18 September 2020.

Earlier awards and directions

The Tamil Nadu Real Estate Regulatory Authority had previously directed the promoter to provide the basic amenities promised in the Construction Agreement on or before 31 March 2022. According to the allottee, full compliance had not occurred and an execution petition remained pending.

The Adjudicating Officer partly allowed the compensation complaint and awarded:

  • Interest at 9.30 per cent on Rs.64,18,500 from 1 September 2019 to 18 September 2020.
  • Interest at 9.30 per cent per year on the resulting compensation from the complaint date until payment.
  • Rs.1,00,000 for mental agony.
  • Rs.25,000 for legal expenses.

Other compensation claims were rejected.

What the allottee sought on appeal

The allottee asked the Tamil Nadu Real Estate Appellate Tribunal to award or increase compensation for:

  • Re-plastering and repairing Apartment C-107, claimed at Rs.14,88,708.
  • Water tanker charges of Rs.5,000 per month until a metro water connection was obtained.
  • Lost rental income of Rs.35,000 per month with interest.
  • A longer period of interest for delayed possession.
  • Mental agony of Rs.20,00,000.

Tribunal observations in the available text

The Tamil Nadu Real Estate Appellate Tribunal noted that the allottee had filed an earlier complaint about metro water supply and delivery of the apartment in habitable condition. He had not sought relief for construction quality in that complaint, although he later raised alleged defects in an email dated 3 February 2021. The Tribunal observed that he could have amended the earlier complaint while it was pending to include the construction quality issue. The supplied extract ends before the Tribunal's final conclusions and directions.

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Common questions

Did the Tribunal finally award the claimed repair costs?

The supplied extract does not include the final decision. It records the Tribunal's observation that the allottee had not raised construction quality defects in his earlier complaint, despite having an opportunity to amend it.

What compensation had the Adjudicating Officer already awarded?

The Adjudicating Officer awarded interest at 9.30 per cent on Rs.64,18,500 from 1 September 2019 to 18 September 2020, further interest on the resulting compensation from the complaint date until payment, Rs.1,00,000 for mental agony and Rs.25,000 for legal expenses.

Why did the allottee dispute the possession date?

The allottee said the apartment was handed over on 18 September 2020 only for interior work and lacked water, electricity, sewage and other common amenities. He argued that possession was not in the habitable, ready-to-move-in condition required by the Construction Agreement.

Was metro water available at the apartment?

The allottee said metro water had not been provided and that Rs.5,000 per month was collected for tanker water from July 2021. The promoter stated that it was taking steps to obtain a metro water connection.