Case law, Tamil Nadu land law
Appeal No. 40 of 2022 and M.A. No. 103 of 2022
The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal No. 40 of 2022 and M.A. No. 103 of 2022 on 18 August 2023, recording an out of court settlement between M/s. Grace Gated Community LLP, M/s. Casa Grand Civil Engineering Private Limited and Mrs. Vinishya. The order cancels the sale and construction agreements for Apartment D306 in Casa Grand Smart Town, permits Mrs. Vinishya to withdraw the deposited settlement amount with accrued interest, and closes the appeal and connected applications.
What the tribunal decided
The Tamil Nadu Real Estate Appellate Tribunal accepted the Joint Memorandum of Compromise dated 18 August 2023 and made it part of the order in Appeal No. 40 of 2022. The appeal challenged an order dated 2 September 2021 in CCP No. 138 of 2020 passed by the Adjudicating Officer of the Tamil Nadu Real Estate Regulatory Authority.
The parties informed the tribunal that they had settled their dispute out of court. Mrs. Vinishya attended the hearing and acknowledged that the compromise had been properly executed.
Property and agreements affected
The settlement concerns Apartment D306 in the Casa Grand Smart Town project at Thalambur Village and an undivided share of land measuring 359 square feet.
Key terms recorded by the tribunal include:
- The unregistered Agreement of Sale dated 9 May 2018 stands cancelled.
- The registered Construction Agreement dated 15 November 2019, registered as Document No. 15448 of 2019 at the Sub-Registrar Office, Thiruporur, stands cancelled.
- The parties stated that no further document or registration was required to cancel the agreements.
- Mrs. Vinishya agreed to withdraw all allegations and claims raised in CCP No. 138 of 2020.
- Mrs. Vinishya also agreed to withdraw E.P. No. 81 of 2021 before the Adjudicating Officer of the Tamil Nadu Real Estate Regulatory Authority.
Payment and future sale
M/s. Grace Gated Community LLP and M/s. Casa Grand Civil Engineering Private Limited had deposited demand drafts totalling Rs. 34,52,644. The settlement treats that amount as full and final settlement of Mrs. Vinishya's claims. The tribunal permitted her to withdraw the deposited amount together with accrued interest.
The compromise states that the appellants may sell the 359 square feet undivided share and allot Apartment D306 to another party. Mrs. Vinishya has no further claim over the property, and her further consent or execution of documents is not required, although she agreed to comply if the appellants require any further act concerning cancellation.
Who is affected
The decision directly affects the two appellant companies, Mrs. Vinishya, Apartment D306 and the associated undivided land share. The parties confirmed that they retained no further claims against each other, and the tribunal closed the appeal and any connected miscellaneous applications.
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Common questions
Does Mrs. Vinishya still have a claim over Apartment D306?
No. The compromise records cancellation of the allotment and both agreements, and states that Mrs. Vinishya has no further claim over Apartment D306 or the associated 359 square feet undivided land share.
Can the developers sell Apartment D306 to another buyer?
Yes. The compromise states that M/s. Grace Gated Community LLP and M/s. Casa Grand Civil Engineering Private Limited may sell the undivided land share and allot Apartment D306 to another party without further consent from Mrs. Vinishya.
How much was agreed as the full and final settlement?
The deposited demand drafts totalled Rs. 34,52,644. The tribunal permitted Mrs. Vinishya to withdraw that amount together with accrued interest.
What happened to the pending execution proceedings?
Mrs. Vinishya agreed to withdraw E.P. No. 81 of 2021, which sought execution of the order in CCP No. 138 of 2020 before the Adjudicating Officer of the Tamil Nadu Real Estate Regulatory Authority.
