Case law, Tamil Nadu land law
Appeal No.66 of 2023 and M.A.No.192 of 2023
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands), in Appeal Number 66 of 2023 and Miscellaneous Application Number 192 of 2023, dated 20 September 2023, held that TNRERA cannot declare or cancel a registered settlement deed. The Tribunal also found that the project, completed and handed over in 2015, was not an ongoing project and that the Real Estate (Regulation and Development) Act, 2016 could not be applied retrospectively to the dispute.
What the case concerns
Appeal Number 66 of 2023 and Miscellaneous Application Number 192 of 2023 arose from a complaint by apartment owner P. Shanmugam against promoters Kasinathan and Jayamala Kasinathan. The promoters challenged the dismissal of their application questioning whether the Real Estate (Regulation and Development) Act, 2016 applied retrospectively and whether TNRERA could decide the civil dispute.
The complaint concerned land in R.S. No.1468/2A, Vilpatty Village, Kodaikanal Taluk, Dindigul District. The complainant sought several remedies, including cancellation of a settlement deed registered as Document No.1142/2018 at the Kodaikanal Sub Registrar Office, recognition of an additional 940 square feet of undivided land share, execution of a conveyance deed, protection of possession, removal of steps over an underground water sump, restoration of fencing and criminal action.
Key findings
The Tamil Nadu Real Estate Appellate Tribunal made the following findings:
- The project was completed in 2015, and the complainant took possession of the flat in 2015.
- The Real Estate (Regulation and Development) Act, 2016 came into force on 25 March 2016.
- The completed project could not be treated as an ongoing project.
- The Act applies prospectively because it does not state that its provisions have retrospective effect.
- TNRERA and the Appellate Tribunal have no specific power under the Act to declare a registered document null and void or to cancel it.
- The restriction on Civil Court jurisdiction applies only to matters that the Authority, Adjudicating Officer or Appellate Tribunal is empowered to decide.
- A request to invalidate the settlement deed and related consequential claims must be made before a competent Civil Court.
- Lakshmikanth, the beneficiary under the settlement deed, had not been made a party to the original complaint before TNRERA.
Who may be affected
The ruling is relevant to buyers, apartment owners and promoters involved in disputes about projects completed before the Act came into force. It is particularly relevant where the main relief sought is cancellation of a registered deed rather than correction of structural defects, workmanship, quality, services or other promoter obligations under an agreement for sale.
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Common questions
Can TNRERA cancel a registered settlement deed?
No. The Tamil Nadu Real Estate Appellate Tribunal held that the Real Estate (Regulation and Development) Act, 2016 does not empower TNRERA or the Appellate Tribunal to declare a registered document null and void or cancel it.
Where should an apartment owner seek cancellation of the settlement deed?
The Tribunal stated that cancellation of the settlement deed and the related consequential remedies must be sought before a competent Civil Court.
Was the 2015 project treated as an ongoing project under the Act?
No. Because the project was completed and possession was handed over in 2015, the Tribunal found that it could not be treated as an ongoing project.
Did the Tribunal apply the Real Estate (Regulation and Development) Act, 2016 retrospectively?
No. The Tribunal stated that the Act applies prospectively because it does not provide for retrospective application.
