Appeal No.23 of 2023 and M.A.Nos. 114 & 115 of 2023
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Islands), in Appeal Number 23 of 2023 and Miscellaneous Application Numbers 114 and 115 of 2023 dated 9 August 2023, dismissed an appeal challenging TNRERA's interim protection for an existing Sewage Treatment Plant and Overhead Tank. The Tribunal directed that the protection against hindrance or disturbance must continue until the pending complaint in C.No.291/2021 is decided.
What the case decides
The Tamil Nadu Real Estate Appellate Tribunal considered an appeal by M/s RDB Realty Infrastructure Limited and M/s VK Apartments Private Limited against Suncity Villa and Flat Owners Association and M/s Amar Prakaash Developers. The appeal challenged the TNRERA order dated 18 January 2023 in I.A.No.35/2022 in C.No.291/2021.
The Tribunal dismissed the appeal because it found no ground to interfere with TNRERA's interim protection for the existing Sewage Treatment Plant and Overhead Tank. Miscellaneous Application Numbers 114 and 115 of 2023 were also closed.
Background to the dispute
Suncity Villa and Flat Owners Association sought an interim direction preventing the respondents from demolishing or interfering with the peaceful use of the Sewage Treatment Plant, Overhead Tank and other amenities located within the Suncity Clubhouse while the main complaint remained pending.
The record before the Tribunal included the following points:
- TNRERA directed the respondents not to cause hindrance or disturbance to the existing Sewage Treatment Plant and Overhead Tank.
- The appellants had been added as respondents 2 and 3 in the pending complaint before the interim direction was made.
- Counsel for the association stated that sale deeds had been executed in favour of the allottees and that the appellants had locked the Sewage Treatment Plant and Clubhouse.
- The Tribunal was informed that the appellants had purchased the Clubhouse and Sewage Treatment Plant from the second respondent.
Tribunal's reasoning and result
The Tamil Nadu Real Estate Appellate Tribunal found that TNRERA had granted interim protection to safeguard the interests of the allottees. It considered that removing the protection could allow hindrance, disturbance, demolition or damage to the Sewage Treatment Plant and Overhead Tank, which could make the pending complaint ineffective.
The operative result is:
- The existing Sewage Treatment Plant and Overhead Tank must not be hindered or disturbed.
- The interim protection must continue until C.No.291/2021 is disposed of.
- Appeal Number 23 of 2023 is dismissed as having no merit.
Who is affected
The decision directly affects the appellants, the respondents, the Suncity Villa and Flat Owners Association and the allottees whose use of the existing Sewage Treatment Plant and Overhead Tank was being protected. The main complaint remains pending before TNRERA. Its further hearing had been deferred until withdrawal of the moratorium arising from proceedings before the National Company Law Tribunal.
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Common questions
Can the existing Sewage Treatment Plant or Overhead Tank be disturbed while the complaint is pending?
No. The Tamil Nadu Real Estate Appellate Tribunal continued TNRERA's direction that no hindrance or disturbance should be caused to the existing Sewage Treatment Plant and Overhead Tank until C.No.291/2021 is disposed of.
Did the Tribunal allow the developers' appeal?
No. Appeal Number 23 of 2023 was dismissed as having no merit, and the connected miscellaneous applications were closed.
Has the main complaint before TNRERA been decided?
No. C.No.291/2021 remains pending before TNRERA. The text records that further hearing would take place only after the moratorium connected with the National Company Law Tribunal proceedings is withdrawn.
Why did the Tribunal keep the interim protection in place?
The Tribunal found that the protection served the interests of the allottees. It also considered that demolition or damage to the Sewage Treatment Plant or Overhead Tank could make the pending complaint ineffective.
