Order in Appeal (SR) No. 493 of 2023 and M.A. No. 237 of 2023
The Tamil Nadu Real Estate Appellate Tribunal issued the order in Appeal (SR) No. 493 of 2023 and M.A. No. 237 of 2023, dated 8 January 2024, rejecting an appeal filed without the required pre-deposit. The Tribunal held that a promoter's appeal against a payment direction cannot be entertained unless the promoter first deposits the amount directed to be paid to the complainant or allottee.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered an appeal by P. Abhishek and Usha Kumari against an order of the Tamil Nadu Real Estate Regulatory Authority in C.No. 18 of 2022, dated 9 February 2023. The appellants sought to have that earlier order set aside and the complaint dismissed.
The Tamil Nadu Real Estate Regulatory Authority had directed the respondents in that complaint, other than the fourth respondent, to jointly refund Rs.40,26,210 to the complainant or allottee. The amount represented cash and building materials supplied by the allottee. Payment was directed on or before 31 March 2023, with interest until settlement.
Why the appeal was rejected
The Tamil Nadu Real Estate Appellate Tribunal found that the appellants had not made the pre-deposit required by Section 43(5) of the Real Estate (Regulation and Development) Act, 2016.
Key findings were:
- A promoter appealing against a direction or order must deposit the amount directed to be paid to the complainant or allottee.
- An appeal cannot be entertained when the promoter or appellant has not made that pre-deposit.
- The Act contains no provision allowing the Tribunal to waive the pre-deposit or reduce its amount.
- The Tribunal relied on the Supreme Court judgment reported in 2021 SCC OnLine SC 1044, M/s. Newtech Promoters and Developers Pvt. Ltd. v. State of UP and others, which confirmed the pre-deposit requirement.
The appellants argued that they were not liable to refund the allottee. The Tribunal did not accept the appeal for consideration because the mandatory pre-deposit had not been made.
Who may be affected
The decision is relevant to promoters who want to appeal a Tamil Nadu Real Estate Regulatory Authority order directing payment to a complainant or allottee. A promoter cannot avoid the pre-deposit requirement merely by disputing liability for the refund.
The Tamil Nadu Real Estate Appellate Tribunal rejected Appeal (SR) No. 493 of 2023 as not maintainable. As a consequence, M.A. No. 237 of 2023 was closed.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can a promoter appeal a refund order without first depositing the amount?
No. The Tamil Nadu Real Estate Appellate Tribunal held that a promoter's appeal cannot be entertained without depositing the amount directed to be paid to the complainant or allottee.
Can the Tribunal waive or reduce the required pre-deposit?
The Tribunal stated that the Real Estate (Regulation and Development) Act, 2016 contains no provision for waiving or reducing the pre-deposit.
How much had the Tamil Nadu Real Estate Regulatory Authority directed the respondents to refund?
The Authority directed the respondents, other than the fourth respondent in the complaint, to jointly refund Rs.40,26,210, with interest until settlement.
What happened to the appeal and the connected application?
Appeal (SR) No. 493 of 2023 was rejected as not maintainable because the pre-deposit had not been made. M.A. No. 237 of 2023 was consequently closed.
