Appeal Nos. 60 to 62 of 2022 and M.A. Nos. 107 to 109 of 2023, Common Order

What the case concerned

The common order in Appeal Numbers 60 to 62 of 2022 concerned three buyers who booked apartments in the Jasmine Springs residential project at Thaiyur, Kelambakkam Post, Old Mahabalipuram Road, Chennai. The promoter was Alliance Villas Private Limited.

The buyers questioned the promoter's title because two survey numbers allegedly did not appear in the field measurement book sketch. They also relied on a sale deed dated 4 May 2000, which referred to a proposed Highways Department acquisition of 0.03 cents for road widening. The buyers stopped further payments and asked the Tamil Nadu Real Estate Regulatory Authority to direct the promoter to correct the title and accept the balance price without interest.

Findings on the project land

The Tamil Nadu Real Estate Appellate Tribunal found that:

• The sale deed dated 4 May 2000 transferred only 62 cents out of 65 cents, excluding the 0.03 cents proposed for acquisition.
• The Highways Department later dropped the acquisition proceedings.
• Alliance Villas Private Limited purchased the remaining 0.03 cents from the original vendor's legal representatives through a sale deed dated 5 April 2016.
• The Highways Department issued a No Objection Certificate on 15 September 2017.
• The promoter supplied the title deeds and the No Objection Certificate to the buyers before they entered into construction agreements in 2019.
• There was no proof that any third party claimed a right or title over the disputed land.

The Tribunal therefore found no title defect requiring correction.

Result and effect on the parties

The Tamil Nadu Real Estate Appellate Tribunal upheld the common order dated 22 August 2022 of the Tamil Nadu Real Estate Regulatory Authority and dismissed all three appeals. It noted that the buyers had paid about 75 per cent of the total cost but had neither withdrawn from the project nor paid the remaining 25 per cent.

The Tribunal held that the buyers were bound to pay interest for delayed payment according to their construction agreements. It also dismissed Miscellaneous Application Numbers 107 to 109 of 2023 because the additional documents offered by the buyers were not relevant to deciding the appeals.

Relevance for property buyers

The common order shows that a title concern must be supported by evidence of an existing defect or competing claim. For these buyers, an old reference to proposed acquisition did not establish a defect because the acquisition was dropped, the remaining land was later purchased, and a Highways Department No Objection Certificate had been provided.