Appeal No.65 of 2023 and M.A.No.191 of 2023
The Tamil Nadu Real Estate Appellate Tribunal issued its order dated 15 September 2023 in Appeal No.65 of 2023 and M.A.No.191 of 2023, filed by M/s. Casa Grande Civil Engineering Pvt. Ltd. against Ajmal Khan and Finozia Farveen. The Tribunal set aside the Adjudicating Officer’s order granting relief to the buyers without hearing the promoter and sent the complaint back for a fresh decision, subject to the promoter paying Rs.10,000 as costs.
What the case concerns
Appeal No.65 of 2023 arose from a complaint by Ajmal Khan and Finozia Farveen seeking compensation, interest and other reliefs for delay in handing over possession of a flat. The Adjudicating Officer of the Tamil Nadu Real Estate Regulatory Authority decided C.C.P.No.114 of 2020 on 31 August 2021 in favour of the buyers after M/s. Casa Grande Civil Engineering Pvt. Ltd. received notice but did not appear.
The promoter appealed under Section 44 of the Real Estate (Regulation and Development) Act, 2016. It told the Tamil Nadu Real Estate Appellate Tribunal that the Covid pandemic had prevented it from appearing and asked for an opportunity to contest the complaint.
What the Tribunal decided
The Tamil Nadu Real Estate Appellate Tribunal concluded that the promoter should be heard before the complaint is decided on its merits. Counsel for the respondents maintained that the earlier relief was properly granted, but agreed that an opportunity could be given to the promoter on payment of costs.
The Tribunal therefore:
- Allowed Appeal No.65 of 2023.
- Set aside the order dated 31 August 2021 in C.C.P.No.114 of 2020.
- Sent the complaint back to the Single Member for fresh consideration.
- Closed M.A.No.191 of 2023.
- Directed the Registry to return the appeal pre-deposit to the promoter, together with accrued interest, if any.
Conditions and further proceedings
The fresh hearing was made subject to M/s. Casa Grande Civil Engineering Pvt. Ltd. paying Rs.10,000 as costs to the respondents within one week from 15 September 2023. Payment was to be made to the respondents’ counsel appearing before the Tribunal.
The Tribunal also directed that:
- Both parties appear before the Single Member on 25 September 2023.
- The promoter file its counter on 25 September 2023.
- Both parties receive an opportunity to be heard.
- The Single Member decide the complaint afresh as quickly as possible, and no later than six weeks after receiving a copy of the Tribunal’s order.
Who is affected
The decision directly affects M/s. Casa Grande Civil Engineering Pvt. Ltd., Ajmal Khan and Finozia Farveen. The buyers’ compensation claim was not finally decided by the Tribunal. It was returned for a new hearing and decision after both sides had an opportunity to present their case.
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Common questions
Did the Tribunal reject the buyers’ claim for delayed possession compensation?
No. The Tamil Nadu Real Estate Appellate Tribunal sent the complaint back to the Single Member for a fresh decision after hearing both parties.
Why was the earlier decision set aside?
M/s. Casa Grande Civil Engineering Pvt. Ltd. had not appeared before the Adjudicating Officer and said the Covid pandemic prevented its appearance. The Tribunal decided that the promoter should receive an opportunity to contest the complaint.
Was the promoter required to pay any costs?
Yes. The fresh consideration was conditional on the promoter paying Rs.10,000 to the respondents as costs within one week from 15 September 2023.
What happened to the promoter’s appeal pre-deposit?
The Tribunal directed its Registry to return the pre-deposit to the promoter, together with accrued interest, if any.
