Case law, Tamil Nadu land law
Common Order in Appeal Nos. 9 and 15 of 2023 and M.A. No. 56 of 2023
The Tamil Nadu Real Estate Appellate Tribunal issued the Common Order in Appeal Nos. 9 and 15 of 2023 and M.A. No. 56 of 2023 on 24 July 2023. It disposes of the appeals between D. Sunil and Alliance Mall Developers Company Private Limited according to their compromise, sets aside the penalties imposed in C.C.P. No. 324 of 2021, and permits the developer to withdraw the amount deposited in Appeal No. 15 of 2023.
What the case concerned
The Tamil Nadu Real Estate Appellate Tribunal considered two appeals arising from the Single Member's final order dated 13 January 2023 in C.C.P. No. 324 of 2021.
- D. Sunil filed Appeal No. 9 of 2023. He sought interest at 12 per cent per year on an invested amount of Rs. 17,94,398, calculated from the dates of payment until 13 October 2021.
- Alliance Mall Developers Company Private Limited filed Appeal No. 15 of 2023. The company sought to set aside directions requiring payment of penalties.
- M.A. No. 56 of 2023 was connected with Appeal No. 15 of 2023.
Settlement recorded by the Tribunal
D. Sunil and Alliance Mall Developers Company Private Limited informed the Tamil Nadu Real Estate Appellate Tribunal that they had settled the dispute outside court. Both parties and their lawyers signed a Joint Memorandum of Compromise dated 24 July 2023.
The compromise records that:
- Alliance Mall Developers Company Private Limited paid D. Sunil Rs. 6,70,000 as full and final settlement of all claims in C.C.P. No. 324 of 2021.
- D. Sunil agreed not to make any further claim against the company concerning the dispute before any forum, tribunal, authority or court.
- Both parties treated their claims against each other as withdrawn.
- The settlement payment was not an admission of liability and was not to be treated as a precedent in another case.
- Any amount deposited by the company in Appeal No. 15 of 2023 could be withdrawn or paid to the company.
Result and practical effect
The Tamil Nadu Real Estate Appellate Tribunal took the compromise and the joint memo on record and disposed of both appeals according to the settlement. The compromise terms form part of the Tribunal's order.
The Tribunal expressly set aside the penalties imposed by the Single Member in C.C.P. No. 324 of 2021. It also permitted Alliance Mall Developers Company Private Limited to withdraw the amount deposited in Appeal No. 15 of 2023 and closed the connected miscellaneous application.
The decision directly concerns D. Sunil and Alliance Mall Developers Company Private Limited. The compromise itself states that its payment is not a precedent for other disputes.
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Common questions
Did D. Sunil receive a settlement payment?
Yes. The compromise records that Alliance Mall Developers Company Private Limited paid him Rs. 6,70,000 as full and final settlement of all claims in C.C.P. No. 324 of 2021.
Can D. Sunil bring another claim about the same dispute?
The compromise states that D. Sunil will not make any other claim against the company concerning the present dispute before any forum, tribunal, authority or court.
What happened to the penalties against the developer?
The Tamil Nadu Real Estate Appellate Tribunal set aside the penalties imposed by the Single Member in C.C.P. No. 324 of 2021.
Does this settlement set a precedent for other property cases?
No. The compromise expressly states that the payment is not an admission of liability and must not be treated as a precedent in another case.
