Case law, Tamil Nadu land law
Appeal (SR) No.1099 of 2023
The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal (SR) No.1099 of 2023 on 3 November 2023, rejecting V. Sangeetha's appeal against M/s. Casa Grand Builder Private Limited as not maintainable. The Tribunal held that interest could not be added during execution because the original Tamil Nadu Real Estate Regulatory Authority order had not awarded interest, and that any recovery warrant must be issued by the Authority in accordance with law.
What the case concerns
Appeal (SR) No.1099 of 2023 arose from an execution proceeding involving complainant V. Sangeetha and promoter M/s. Casa Grand Builder Private Limited. The complainant challenged the Tamil Nadu Real Estate Regulatory Authority's order dated 2 June 2023 in E.P.No.14 of 2021 in C.No.436 of 2019.
The complainant sought interest on Rs.11,62,300 plus GST, a recovery warrant, enforcement through the District Collector of Chennai, attachment of the promoter's properties, and completion of specified facilities for the villa. The facilities requested included an overhead water tank, bore well with motor, septic tank, solar water heater, main gate and completion certificate.
Why the appeal was rejected
The Tamil Nadu Real Estate Appellate Tribunal found that the original Authority order dated 27 February 2020 had not awarded interest. The complainant had not appealed against that non-award, so the issue of interest had become final.
The Tribunal also found that the execution order followed the original order. It therefore held that there was no ground to appeal against the execution order merely to obtain interest that was not granted originally.
On the request for a recovery warrant, the Tribunal stated that issuing such a warrant was a matter for the Tamil Nadu Real Estate Regulatory Authority to handle in accordance with law. The appeal could not be entertained for that purpose.
Directions already made by the Authority
The Tamil Nadu Real Estate Regulatory Authority's execution order had:
- Directed the promoter to refund Rs.11,62,300 plus GST without further loss of time.
- Imposed a penalty of Rs.5,000 per day for continued non-compliance, cumulatively extending up to Rs.3,00,000.
- Recorded that the promoter had not applied to register the project as a residential building project with common amenities.
- Directed the promoter to register the building project without further loss of time.
Practical effect
Appeal (SR) No.1099 of 2023 did not add interest to the refund or direct the Tribunal itself to issue a recovery warrant. The refund, penalty and project registration directions recorded in the Authority's execution order remained the relevant directions described in the decision.
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Common questions
Did the Tribunal award interest on the refund of Rs.11,62,300 plus GST?
No. The original Authority order had not awarded interest, and the complainant had not appealed against that non-award. The Tribunal held that the issue had therefore become final.
Was the promoter still directed to refund the excess payment?
The decision records that the Tamil Nadu Real Estate Regulatory Authority directed the promoter to refund Rs.11,62,300 plus GST without further loss of time.
What penalty was imposed for failure to comply with the refund direction?
The Authority imposed a penalty of Rs.5,000 per day while the default continued, cumulatively extending up to Rs.3,00,000.
Can the Tamil Nadu Real Estate Appellate Tribunal issue the requested recovery warrant through this appeal?
No. The Tribunal stated that issuing the recovery warrant was for the Tamil Nadu Real Estate Regulatory Authority to address in accordance with law, and rejected the appeal as not maintainable.
