Appeal in S.R.No.685/2022 against C.C.P.No.115 of 2021
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands), in Appeal in S.R. No. 685/2022 against C.C.P. No. 115 of 2021, issued its order dated 28 November 2022. The Tribunal rejected the appeal filed by M/s Grand Style Constructions because the required pre-deposit of Rs.12,24,031 had not been made and the Real Estate (Regulation and Development) Act 2016 did not permit waiver of that requirement.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered an appeal by M/s Grand Style Constructions, represented by its proprietor S. Elayaraja, against K.S. Prateep Kumar, Srividhya and C.A. Prabhakar. The appeal challenged the order of the Adjudicating Officer, Tamil Nadu Real Estate Regulatory Authority, in C.C.P. No. 115 of 2021 dated 3 August 2022.
The appeal was filed under Section 44(1) of the Real Estate (Regulation and Development) Act 2016. The Tribunal considered whether it could entertain the appeal without the pre-deposit required under Section 43(5).
Who is affected
Appeal in S.R. No. 685/2022 is directly relevant to the appellant and the three respondents. It is also useful to promoters and developers considering an appeal against an order of the Tamil Nadu Real Estate Regulatory Authority.
For property buyers or other complainants, the ruling shows that a promoter's appeal may be rejected at the filing stage if the statutory pre-deposit is not made. The Tribunal did not examine or decide the appellant's arguments on the merits of the underlying dispute.
Key findings
The Tamil Nadu Real Estate Appellate Tribunal recorded the following points:
- M/s Grand Style Constructions filed the appeal without making the pre-deposit of Rs.12,24,031 contemplated under Section 43(5).
- Counsel for the appellant sought exemption because the appellant claimed to have a strong case on the merits.
- The Real Estate (Regulation and Development) Act 2016 does not provide for waiver of the pre-deposit required to entertain an appeal.
- The Tribunal relied on the Supreme Court judgment in Newtech Promoters and Developers Private Limited v. State of Uttar Pradesh and Others, which held that the required pre-deposit must be made to maintain an appeal.
- A High Court direction dated 1 December 2021, which restrained coercive action, did not prevent the appellant from making the required pre-deposit.
Result
The Tamil Nadu Real Estate Appellate Tribunal held that the appeal was not maintainable and rejected it. Any connected miscellaneous applications that remained pending were also closed.
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Common questions
Why was M/s Grand Style Constructions' appeal rejected?
The appeal was rejected because the appellant had not made the required pre-deposit of Rs.12,24,031 under Section 43(5) of the Real Estate (Regulation and Development) Act 2016.
Can the Tamil Nadu Real Estate Appellate Tribunal waive the pre-deposit because an appellant has a strong case?
Not according to this ruling. The Tribunal stated that the Act does not provide for waiver of the pre-deposit required to entertain the appeal.
Did the High Court's direction against coercive action remove the pre-deposit requirement?
No. The Tribunal held that the High Court order dated 1 December 2021 did not prevent the appellant from making the pre-deposit required under Section 43(5).
Did the Tribunal decide whether the appellant's underlying case was valid?
No. The Tribunal rejected the appeal as not maintainable because the pre-deposit had not been made, rather than deciding the merits of the underlying dispute.
