Appeal No.67 of 2023, Dhivya R Kottapadi versus M/s. Baashyaam Constructions Pvt. Ltd

What the appeal concerned

Appeal No.67 of 2023 arose from the purchase of four apartments in Crown Residences at Koyambedu, Chennai. The allottee, Dhivya R Kottapadi, had entered into separate construction and sale agreements with M/s. Baashyaam Constructions Private Limited for Flats Sig-A26, Sig-A27, Sig-B26 and Sig-B27.

The total cost was Rs.11,36,09,420, of which the allottee paid Rs.2,20,30,000. She asked the Tamil Nadu Real Estate Appellate Tribunal to invalidate the cancellation, require the promoter to honour the agreements and direct execution and registration of sale deeds after payment of the balance consideration.

Why the agreements were cancelled

The Tamil Nadu Real Estate Appellate Tribunal recorded the following facts:

• The allottee made her last payment on 18 August 2021, before the construction and sale agreements were executed on 20 August 2021.
• The promoter sent payment demands by email on 10 November 2021 and 7 December 2021.
• The promoter issued a legal notice on 10 March 2022 demanding payment with interest.
• The allottee did not make further payments after receiving the demands and legal notice.
• The promoter communicated cancellation by email on 16 April 2022 and refunded the balance after deducting 10 percent of the construction cost as cancellation charges.
• The allottee later transferred the refunded amount back to the promoter.

Tribunal’s findings

Appeal No.67 of 2023 found that the allottee had repeatedly failed to meet the agreed payment schedule. The Tribunal rejected the argument that the promoter lost its right to cancel merely because it had first demanded delayed payment with interest.

The allottee also claimed that GST investigations had resulted in frozen bank accounts. The Tribunal found that she had not established that her account was frozen and stated that, even if it had been, she remained bound by the agreements.

The Tribunal also noted that payment default by one allottee in a multi-storey apartment project could affect construction progress for other allottees. It found no illegality in the Tamil Nadu Real Estate Regulatory Authority’s decision and dismissed the appeal at the admission stage.

Who is directly affected

Appeal No.67 of 2023 directly determines the dispute between Dhivya R Kottapadi and M/s. Baashyaam Constructions Private Limited. The allottee did not obtain restoration of the agreements or a direction requiring sale deeds for the four flats.