Case law, Tamil Nadu land law
Appeal (SR) No.103 of 2024
The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal (SR) No.103 of 2024 on 17 April 2024, concerning an appeal by M/s. Jain Housing and Constructions Limited against a TNRERA maintenance payment direction. The Tribunal rejected the promoter's claim that it could appeal without the required pre-deposit and stated that the pre-deposit condition under the Real Estate (Regulation and Development) Act, 2016 is mandatory.
What the case concerns
Appeal (SR) No.103 of 2024 was filed by M/s. Jain Housing and Constructions Limited against Inselli Park Owners Association. The promoter sought to set aside the TNRERA order dated 15 December 2023 in C.No.400 of 2019 and have the complaint dismissed.
The TNRERA direction required the promoter to:
- Reimburse Rs.35,12,114 along with maintenance charges due from 1 January 2019.
- Pay maintenance at Rs.3.05 per square foot per month for 350 unsold flats in the project.
- Continue paying future maintenance charges at the rates payable by members of the owners association until the project is completed and the unsold flats are sold.
Pre-deposit requirement
The Tamil Nadu Real Estate Appellate Tribunal recorded that the promoter filed Appeal (SR) No.103 of 2024 without making the pre-deposit required under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016.
Under the provision quoted in the decision:
- A promoter appealing against a penalty must deposit at least thirty per cent of the penalty, or a higher percentage determined by the Appellate Tribunal.
- Where payment to an allottee is involved, the promoter must deposit the total amount payable to the allottee, including any interest and compensation imposed.
- Where both apply, both deposits may be required before the appeal is heard.
The promoter argued that the TNRERA findings were wrong and that it should therefore not have to make the pre-deposit. The Tribunal rejected that argument.
Tribunal's reasoning and practical effect
The Tamil Nadu Real Estate Appellate Tribunal relied on the Supreme Court decision in Newtech Promoters & Developers Private Limited versus State of Uttar Pradesh and others. It stated that the pre-deposit requirement is mandatory and cannot be waived or modified.
For promoters, Appeal (SR) No.103 of 2024 confirms that objections to the underlying TNRERA decision do not remove the pre-deposit condition. For allottees and owners associations, the cited reasoning explains that pre-deposit protects amounts already determined by the Authority and discourages unsupported appellate litigation. The quoted provision also treats an association of allottees or a registered voluntary consumer association as a person entitled to appeal.
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Common questions
Can a promoter appeal a TNRERA payment order without first making a deposit?
The Tamil Nadu Real Estate Appellate Tribunal stated that the promoter pre-deposit requirement is mandatory and cannot be waived or modified.
What maintenance payment had TNRERA directed in this case?
TNRERA directed reimbursement of Rs.35,12,114, maintenance from 1 January 2019 at Rs.3.05 per square foot per month for 350 unsold flats, and future maintenance until project completion and sale of those flats.
Does claiming that the TNRERA decision is wrong remove the pre-deposit requirement?
No. The promoter made that argument, but the Tamil Nadu Real Estate Appellate Tribunal rejected it.
Can an association of allottees file an appeal under the quoted provision?
Yes. The provision quoted in Appeal (SR) No.103 of 2024 states that a person includes an association of allottees or a voluntary consumer association registered under applicable law.
