Case law, Tamil Nadu land law

Un-numbered Appeal (SR) No. 625 of 2022 Against C.C.P. No. 116 of 2021

In force

The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry, Andaman and Nicobar Islands, issued its order dated 21 November 2022 in Un-numbered Appeal (SR) No. 625 of 2022, rejecting the appeal filed by M/s. SSM Builders & Promoters against N. Prema. The Tribunal found that the appeal could not be maintained because the appellant had not made the pre-deposit required for the Tribunal to entertain it.

CategoryTribunal and court orders
Effective1 January 2022
Pages2
StatusIn force
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What the case concerns

The Tamil Nadu Real Estate Appellate Tribunal considered an appeal by M/s. SSM Builders & Promoters, represented by its Managing Partner, K. Santhanam, against N. Prema. The appeal challenged the Adjudicating Officer of the Tamil Nadu Real Estate Regulatory Authority's order dated 27 July 2022 in C.C.P. No. 116 of 2021.

The appeal was filed under Section 44(1) of the Real Estate (Regulation and Development) Act 2016. It came before the Tribunal for compliance with the requirement to deposit an amount under Section 43(5) of the Act.

What the Tribunal decided

The Tamil Nadu Real Estate Appellate Tribunal rejected Un-numbered Appeal (SR) No. 625 of 2022 as not maintainable. The reason was that M/s. SSM Builders & Promoters had filed the appeal without making the required pre-deposit.

The Tribunal recorded the following points:

  • The Registry questioned whether the appeal was maintainable because the appellant had not made the pre-deposit contemplated under Section 43(5).
  • Section 43(5) requires the contemplated pre-deposit before the Tribunal can entertain an appeal.
  • The Supreme Court judgment in Newtech Promoters and Developers Pvt. Ltd. stated that an appeal against a Real Estate Regulatory Authority order requires a pre-deposit.
  • The Tribunal stated that it had no jurisdiction to waive or exempt the appellant from making the pre-deposit.
  • Because the appeal was filed without the pre-deposit, it was rejected as not maintainable.
  • Any connected miscellaneous applications that were pending were closed.

Who may be affected

The Tamil Nadu Real Estate Appellate Tribunal's order is relevant to promoters, developers and other parties seeking to appeal an order of the Tamil Nadu Real Estate Regulatory Authority. It shows that an appellant required to make a pre-deposit cannot have the appeal entertained without complying with that requirement.

For property buyers or owners involved in a Real Estate Regulatory Authority dispute, the decision means that an opposing party's appeal may be rejected at the maintainability stage if the required pre-deposit has not been made. The Tribunal did not decide the underlying dispute described in C.C.P. No. 116 of 2021 in this order.

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Common questions

Why was M/s. SSM Builders & Promoters' appeal rejected?

The Tamil Nadu Real Estate Appellate Tribunal rejected the appeal because the appellant had not made the pre-deposit required under Section 43(5) for the Tribunal to entertain the appeal.

Could the Tribunal waive the pre-deposit requirement?

No. The Tamil Nadu Real Estate Appellate Tribunal stated that, based on the Supreme Court judgment in Newtech Promoters and Developers Pvt. Ltd., it had no jurisdiction to waive or exempt the appellant from making the pre-deposit.

Did the Tribunal decide the underlying complaint between the builder and N. Prema?

No. The appeal was rejected as not maintainable because the required pre-deposit had not been made, rather than decided on the underlying dispute.

What happened to the connected miscellaneous applications?

The Tamil Nadu Real Estate Appellate Tribunal closed any connected miscellaneous applications that were pending.