Appeal No.13 of 2024 and M.A.No.22 of 2024
The Tamil Nadu Real Estate Appellate Tribunal, in Appeal No.13 of 2024 and M.A.No.22 of 2024 dated 20 March 2024, dismissed an apartment buyers' appeal challenging a TNRERA order that recorded a settlement with the promoter. The Tribunal held that an appeal against a compromise decree was not maintainable and indicated that the buyers should have raised their allegation of coercion through a review petition before the Tamil Nadu Real Estate Regulatory Authority.
What the case concerns
Appeal No.13 of 2024 and M.A.No.22 of 2024 was decided by the Tamil Nadu Real Estate Appellate Tribunal for Tamil Nadu, Puducherry, Andaman and Nicobar Islands under the Real Estate (Regulation and Development) Act, 2016. The appellants were Syed Kaleemulla and Arifa Khan. The respondents included M/s. Lokaa Developer Private Limited, L.K. Sudhish and S. Poomajothi.
The buyers challenged the Tamil Nadu Real Estate Regulatory Authority order dated 15 December 2023 in C.No.41 of 2023. Their requested reliefs included:
- Registration of a sale deed transferring 358.65 square feet of undivided land share.
- Registration of a construction agreement dated 14 August 2019.
- Completion and possession of Apartment 1701 in the M-ONE project, with covered car parking and reserved two-wheeler parking.
- Compensation of Rs.15,00,000 for mental agony.
- Interest at 18 per cent per year from 14 August 2019 until possession.
- Costs of the appeal.
Earlier settlement before the Authority
The Tamil Nadu Real Estate Regulatory Authority recorded that the parties had settled the dispute outside court through a Joint Memorandum of Compromise dated 3 October 2023. The settlement involved swapping Flat Unit No.1701 for Unit No.1205 in the same project.
The Authority directed the promoter to file a compliance affidavit before 31 December 2023, confirming registration of all agreements and providing copies of the registered agreements. The complaint was then disposed of.
Tribunal's decision
The Tamil Nadu Real Estate Appellate Tribunal stated that no appeal is maintainable against a compromise decree. The buyers argued through counsel that the Joint Memorandum of Compromise had been obtained by coercion at a police station and should have been rejected.
The Tribunal noted that this allegation had not been brought before the Authority. It stated that, if the allegation was genuine, the buyers should have filed a review petition before the Tamil Nadu Real Estate Regulatory Authority and placed those contentions before it.
The Tribunal therefore dismissed Appeal No.13 of 2024 as not maintainable. It also closed the connected M.A.No.22 of 2024.
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Common questions
Did the Tribunal order the developer to register the sale deed or hand over the apartment?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed the appeal as not maintainable and did not grant the requested sale deed, agreement registration, possession, compensation or interest reliefs.
Why was the buyers' appeal dismissed?
The Tribunal held that an appeal was not maintainable against a compromise decree. The earlier TNRERA order had recorded a Joint Memorandum of Compromise between the parties.
What did the Tribunal say about the buyers' allegation of coercion?
The Tribunal noted that the allegation had not been raised before the Authority. It stated that the buyers should have filed a review petition before the Tamil Nadu Real Estate Regulatory Authority if the allegation was genuine.
What change of apartment was recorded in the settlement?
The Joint Memorandum of Compromise dated 3 October 2023 recorded a swap from Flat Unit No.1701 to Unit No.1205 in the same real estate project.
