Common Order in Review Petition Nos. 2 and 3 of 2023
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands) issued the common order in Review Petition Nos. 2 and 3 of 2023 on 17 April 2023, dismissing review petitions filed by M/s. Pacifica (Chennai Project) Infrastructure Company Private Limited. The Tribunal found no apparent error in its earlier decision requiring the developer to deposit the entire refund and compensation awarded by the Tamil Nadu Real Estate Regulatory Authority before pursuing its appeals.
What the case concerned
The Tamil Nadu Real Estate Appellate Tribunal considered Review Petition Nos. 2 and 3 of 2023, filed by M/s. Pacifica (Chennai Project) Infrastructure Company Private Limited. The petitions asked the Tribunal to review its order dated 6 December 2021 in M.A. Nos. 185 and 186 of 2021, connected with Appeal Nos. 134 and 135 of 2021.
The respondents were P.N. Vidya and A.P. Manikandan in Review Petition No. 2 of 2023, and M.G. Sarangan in Review Petition No. 3 of 2023.
Pre deposit requirement
The Tamil Nadu Real Estate Regulatory Authority had directed the developer to refund amounts and pay compensation to the respondents. The Tamil Nadu Real Estate Appellate Tribunal held that, where an appealed order directs both refund and compensation, the entire awarded amount must be deposited as a pre deposit under Section 43(5) of the Real Estate Regulation And Development Act 2016 before the appeal is filed.
Key findings were:
- The developer had previously asked the Tribunal to waive the pre deposit.
- The Tribunal rejected that request on 6 December 2021.
- The Tribunal relied on the Supreme Court judgment reported as 2021 SCC OnLine SC 1044, M/s. Newtech Promoters and Developers Private Limited v. State of UP and others.
- The Supreme Court judgment was described as requiring an appellant facing an order for compensation or refund to deposit 100% of the amount awarded.
- The Tribunal concluded that it had no jurisdiction to waive the required pre deposit in these circumstances.
Limits of a review petition
The Tamil Nadu Real Estate Appellate Tribunal stated that a review petition can be entertained only where there is an error apparent on the face of the record. A review cannot operate as an appeal in disguise, and an appellant cannot use it to argue the appeal again.
Result and practical effect
The Tamil Nadu Real Estate Appellate Tribunal found no apparent error that justified interference with its earlier decision. It dismissed both review petitions as lacking merit.
For developers appealing a Tamil Nadu Real Estate Regulatory Authority direction to refund money and pay compensation, the decision confirms that the entire awarded amount must be deposited before the appeal. For homebuyers who have obtained refund and compensation orders, the decision explains the deposit condition applied to a developer's appeal.
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Common questions
Did the Tribunal waive the developer's pre deposit?
No. The Tamil Nadu Real Estate Appellate Tribunal held that it had no jurisdiction to waive the pre deposit where the Tamil Nadu Real Estate Regulatory Authority had ordered refund and compensation.
How much did the developer have to deposit before appealing?
The Tribunal held that the developer had to deposit the entire amount awarded for refund and compensation. It relied on a Supreme Court judgment described as requiring 100% of the awarded amount.
Can a review petition be used to argue the appeal again?
No. The Tamil Nadu Real Estate Appellate Tribunal stated that a review is limited to an error apparent on the face of the record and cannot be treated as an appeal in disguise.
What happened to Review Petition Nos. 2 and 3 of 2023?
Both review petitions were dismissed because the Tribunal found no error apparent on the face of the record.
