Appeal (SR) No.531 of 2023
The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal (SR) No.531 of 2023 on 21 August 2023, dismissing an appeal by M/s. Eco Bay Developers and Builders Private Limited as not maintainable because the company had not made the mandatory pre-deposit under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016. The appeal challenged a Tamil Nadu Real Estate Regulatory Authority Adjudicating Officer's direction to issue a recovery warrant.
What the case concerned
Appeal (SR) No.531 of 2023 arose from proceedings involving M/s. Eco Bay Developers and Builders Private Limited and respondents R. Santhana Raj, S. Krishnaveni and R. Sankara Avudaiyammal. The company asked the Tamil Nadu Real Estate Appellate Tribunal to modify the Adjudicating Officer's order dated 3 January 2022 in E.P.No.19/2021 in C.C.P.No.60/2019.
The Adjudicating Officer of the Tamil Nadu Real Estate Regulatory Authority had directed the issue of a recovery warrant under Section 40(1) of the Real Estate (Regulation and Development) Act, 2016.
Why the appeal was dismissed
The Tamil Nadu Real Estate Appellate Tribunal Registry questioned whether Appeal (SR) No.531 of 2023 was maintainable because the appellant had not deposited the pre-deposit amount contemplated by Section 43(5) of the Act.
The Tribunal recorded the following points:
- M/s. Eco Bay Developers and Builders Private Limited had filed the appeal without making the pre-deposit.
- The company was challenging an order directing the issue of a recovery warrant.
- The Supreme Court, in M/s. Newtech Promoters and Developers Private Limited versus State of Uttar Pradesh and others, reported in 2021 SCC OnLine SC 1044, had held that Section 43(5) is mandatory.
- An appeal filed without the required pre-deposit could not be entertained and was not maintainable.
The Tribunal therefore dismissed the appeal as not maintainable. It did not modify the Adjudicating Officer's order.
Who is affected
Appeal (SR) No.531 of 2023 directly concerns the appellant company and the three named respondents. The appellant company's directors, Jayaraj H and Christopher Wilson Fernandes, appeared in person before the Tribunal.
The decision is also relevant to parties seeking to bring an appeal before the Tamil Nadu Real Estate Appellate Tribunal where Section 43(5) requires a pre-deposit. The Tribunal treated compliance with that requirement as mandatory and refused to entertain the company's appeal without it.
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Common questions
Why did the Tamil Nadu Real Estate Appellate Tribunal reject the developer's appeal?
The Tribunal dismissed Appeal (SR) No.531 of 2023 as not maintainable because M/s. Eco Bay Developers and Builders Private Limited had not made the mandatory pre-deposit under Section 43(5) of the Act.
Did the Tribunal cancel or modify the recovery warrant direction?
No. The Tribunal dismissed the appeal as not maintainable and did not modify the Adjudicating Officer's direction to issue a recovery warrant.
What earlier proceeding was the developer challenging?
The developer challenged the Adjudicating Officer's order dated 3 January 2022 in E.P.No.19/2021 in C.C.P.No.60/2019, which directed the issue of a recovery warrant under Section 40(1) of the Act.
What Supreme Court decision did the Tribunal rely on?
The Tribunal relied on M/s. Newtech Promoters and Developers Private Limited versus State of Uttar Pradesh and others, reported in 2021 SCC OnLine SC 1044, which held that Section 43(5) is mandatory.
