Appeal No.34 of 2023
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued its order in Appeal No.34 of 2023 on 26 June 2023. The Tribunal dismissed the appeal by M/s. Newry Properties Private Limited and upheld compensation of Rs.5,25,000 awarded to two flat purchasers for unrectified construction defects, mental agony, hardship and litigation expenses.
What the case concerns
Appeal No.34 of 2023 arose from a complaint by K. Ganesan and V. Mahalakshmi concerning a flat in the Newry Shanmita project at Jelandianpettai Village, Kancheepuram District. They jointly purchased the flat, and possession was handed over, in January 2020.
The purchasers reported various construction defects to M/s. Newry Properties Private Limited by a letter dated 28 July 2020. They later approached the Adjudicating Officer attached to the Tamil Nadu Real Estate Regulatory Authority because the defects had not been rectified to their satisfaction.
Compensation upheld
The Adjudicating Officer considered oral evidence, documents submitted by both sides and an engineer's report dated 2 November 2020. The engineer identified defects in the flat and estimated the cost of the required work.
The compensation upheld by the Tamil Nadu Real Estate Appellate Tribunal consisted of:
- Rs.4,50,000 for work required to address the defects.
- Rs.50,000 for mental agony and hardship suffered by the purchasers.
- Rs.25,000 for litigation expenses.
- Total compensation of Rs.5,25,000.
The Tribunal found that the engineer's report corresponded with the purchasers' earlier letter and showed that the defects remained unrectified. It found no reason to interfere with the compensation awarded by the Adjudicating Officer on 29 March 2023 in C.C.P.No.50 of 2022.
Builder's argument and Tribunal's decision
M/s. Newry Properties Private Limited argued that all defects had been rectified and that compensation should not have been awarded. The builder also argued that the complaint was not maintainable because the purchasers had requested both a refund and compensation in the same complaint.
The Tamil Nadu Real Estate Appellate Tribunal examined the complaint and found that the purchasers had asked only for compensation, not a refund. It also noted that the Adjudicating Officer had awarded compensation only. The Tribunal therefore rejected the builder's argument, dismissed Appeal No.34 of 2023 as lacking merit and closed the connected miscellaneous applications.
Who is directly affected
Appeal No.34 of 2023 directly affects M/s. Newry Properties Private Limited and the purchasers, K. Ganesan and V. Mahalakshmi. It leaves the Adjudicating Officer's compensation award unchanged.
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Common questions
How much compensation did the flat purchasers receive?
The total compensation upheld was Rs.5,25,000. It included Rs.4,50,000 for rectification work, Rs.50,000 for mental agony and hardship, and Rs.25,000 for litigation expenses.
Did the purchasers ask for both a refund and compensation?
No. The Tamil Nadu Real Estate Appellate Tribunal found that the complaint requested compensation only, and the Adjudicating Officer had not awarded a refund.
What evidence supported the claim about construction defects?
The Adjudicating Officer considered oral and documentary evidence, particularly an engineer's report dated 2 November 2020. The report identified defects and estimated Rs.4,50,000 as the cost of the required work.
Did the builder succeed in overturning the compensation award?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed M/s. Newry Properties Private Limited's appeal and left the compensation award unchanged.
