Case law, Tamil Nadu land law
Appeal No.47 of 2023, M/s. Prathiksha Properties v. Kotteeswari
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Islands), in Appeal No.47 of 2023 delivered on 20 September 2023, dismissed M/s. Prathiksha Properties' appeal against the Tamil Nadu Real Estate Regulatory Authority. The Tribunal directed the promoter to hand over two apartments to the allottee within one month without demanding any further amount, and held that an allottee may file a complaint even if the project is exempt from registration.
What the case concerns
Appeal No.47 of 2023 concerns two apartments purchased by Kotteeswari in the Prathiksha Attius project at Vilankurichi Village, Ganapathy, Coimbatore. M/s. Prathiksha Properties, the promoter, challenged an order of the Tamil Nadu Real Estate Regulatory Authority directing possession of both apartments.
The first apartment, Flat C-1, was covered by a registered construction agreement dated 15 June 2017. The promoter had agreed to hand over possession within 18 months. A previous complaint about delay was withdrawn after the parties settled and the promoter agreed to hand over the property before August 2020. The allottee later purchased Flat A-2 under a registered construction agreement dated 5 March 2020.
Dispute over payment
The promoter claimed that the allottee still owed a total of Rs.17,07,899 for the two apartments. The Tribunal rejected that demand because the promoter had not provided details explaining why the construction costs stated in its legal notices and response before the Tamil Nadu Real Estate Regulatory Authority were higher than the amounts in the construction agreements.
The Tribunal recorded the following findings:
- For Flat C-1, the agreed construction cost was Rs.55,14,609, while the promoter admitted receiving Rs.55,80,969.
- For Flat A-2, the agreed construction cost was Rs.58,29,825, while the promoter admitted receiving Rs.60,75,000.
- The allottee had therefore paid more than the construction amounts stated in the agreements.
- The promoter could not demand a further Rs.17,07,899 without furnishing supporting details.
Registration exemption and complaints
The promoter argued that the project was exempt from registration because it contained eight apartments on 442.78 square metres of land. It also argued that the Tamil Nadu Real Estate Regulatory Authority therefore lacked jurisdiction.
The Tamil Nadu Real Estate Appellate Tribunal rejected that argument. It held that exemption from project registration is different from an allottee's right to file a complaint. An allottee in a project exempt from registration can still file a complaint under the Real Estate (Regulation and Development) Act, 2016 for other reliefs.
Result and practical effect
The Tamil Nadu Real Estate Appellate Tribunal dismissed the promoter's appeal at the admission stage. M/s. Prathiksha Properties was directed to hand over possession of both apartments within one month from 20 September 2023, without demanding any further payment from Kotteeswari. Any connected miscellaneous applications were closed.
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Common questions
Can an allottee complain to the Tamil Nadu Real Estate Regulatory Authority if a project is exempt from registration?
Yes. The Tamil Nadu Real Estate Appellate Tribunal held that exemption from project registration does not prevent an allottee from filing a complaint for other reliefs under the Real Estate (Regulation and Development) Act, 2016.
Did the Tribunal accept the promoter's demand for Rs.17,07,899?
No. The Tribunal found that the promoter had not supplied details explaining the increased construction costs and that the allottee had paid more than the construction amounts stated in the agreements.
What did the promoter have to do after the appeal was dismissed?
M/s. Prathiksha Properties was directed to hand over possession of Flat C-1 and Flat A-2 within one month from the date of the Tribunal's decision, without demanding any further amount.
Does the decision apply to both apartments purchased by the allottee?
Yes. The direction covers both Flat C-1 and Flat A-2 in the Prathiksha Attius project.
