Appeal No.09 of 2022

What this case is about

Appeal No.09 of 2022 is a tribunal decision by the Tamil Nadu Real Estate Appellate Tribunal, Chennai, pronounced on 26 September 2022. It arose from an appeal filed by M/s. Jayaswathy Construction Private Limited represented by K.G. Janakiraman against an order of the Tamil Nadu Real Estate Regulatory Authority in C.No.159/2021 dated 30.12.2021.

The dispute was between a flat buyer, S. Ravichandran, and the promoter of the apartment project known as "JC's Swathy Meadows" at Ayanavaram, within Greater Chennai Corporation limits.

What the Tribunal decided

The Tamil Nadu Real Estate Appellate Tribunal, Chennai, dismissed the appeal.

It confirmed that:

• the promoter must hand over possession of the apartment to the complainant forthwith,
• the project had to be registered with the Tamil Nadu Real Estate Regulatory Authority, as already directed by the Tamil Nadu Real Estate Regulatory Authority,
• the promoter must pay Rs.50,000 to the allottee towards costs of defending the appeal.

Why the promoter lost

The promoter argued that the land had been subdivided into three portions and that separate approvals existed, so the part containing the complainant's flat should be treated separately and exempt from registration.

The Tamil Nadu Real Estate Appellate Tribunal, Chennai, rejected that argument because:

• the construction agreement described the complainant's undivided share as part of the total 3874 square feet,
• 9 apartments had been constructed in all, across A Block and B Block,
• the whole 3874 square feet had been developed as a single project called "JC's Swathy Meadows",
• the Tribunal found that the subdivision of survey numbers was irrelevant and was intended to avoid registration with the Tamil Nadu Real Estate Regulatory Authority.

Payment and possession findings

The buyer said he had paid the full construction cost and an additional Rs.6,00,000 demanded for completion and handover. The promoter denied the extra payment and said money was still due.

The Tamil Nadu Real Estate Appellate Tribunal, Chennai, found that:

• the agreed construction cost in the construction agreement was Rs.34,83,700,
• the promoter had admitted receipt of Rs.45,00,000, and elsewhere Rs.45,10,000,
• even if the disputed Rs.6,00,000 was ignored, the buyer had still paid more than the agreed apartment cost,
• the promoter failed to prove the allegation that the Rs.6,00,000 receipt was forged.

Because of this, the Tribunal held that the promoter was bound to hand over possession without further delay.

Who should care

This decision matters to:

• flat buyers in projects split into blocks or subdivisions,
• promoters claiming a project is exempt from Tamil Nadu Real Estate Regulatory Authority registration,
• owners waiting for possession after paying the agreed amount.

The case shows that a promoter cannot avoid registration by splitting survey numbers when the land is actually developed as one project.