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2025 Supreme(Ker) 29

IN THE HIGH COURT OF KERALA AT ERNAKULAM
VIJU ABRAHAM, J.
M/s Artech Realtors Private Limited - Appellant
Versus
Savithri. K W/o Salahudeen - Respondent
MSA NO. 7 OF 2024
Decided On : 06-01-2025

Advocates appeared:
K.M.SATHYANATHA MENON, H.VISHNUDAS, O.V.RADHAKRISHNAN (SR.), PATHIRIPALLY S.KRISHNAKUMARI, REVATHY R NAIR

IMPORTANT POINT
The requirement of a pre-deposit under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016 is mandatory for promoters appealing against orders, with no discretion to waive this requirement.

Headnote:

(A) Real Estate (Regulation and Development) Act, 2016 - Sections 43 and 58 - Appeals against orders of the Real Estate Regulatory Authority - The Appellate Tribunal must require a pre-deposit of at least 30% of the penalty or total amount due before entertaining an appeal - The discretion to reduce the deposit does not extend to waiving it entirely - The appeals were dismissed for non-compliance with the mandatory pre-deposit requirement. (Paras 6 , 8 , 10 )

(B) Appeal - Maintainability - An appeal against an interim order of the Appellate Tribunal is not maintainable as it does not constitute a decree under Section 2(2) of CPC - The requirement of pre-deposit is a condition precedent for filing an appeal. (Paras 8 , 10 )

Facts of the case: The appellants, builders, failed to deliver possession of a residential apartment to the respondent, leading to a claim for compensation. The Adjudicating Officer awarded compensation, which the appellants appealed against, challenging the requirement to pre-deposit the awarded amount.

Findings of Court: The court upheld the mandatory nature of the pre-deposit requirement under Section 43(5) of the Act, confirming that the Appellate Tribunal has no discretion to waive this requirement.

Issues: The main issues were whether the Appellate Tribunal has discretion in ordering a deposit under Section 43(5) and the maintainability of the appeals against interim orders.

Ratio Decidendi: The court ruled that the pre-deposit is mandatory for appeals filed by promoters, and the discretion granted does not allow for a complete waiver of the deposit.

Result: Appeals dismissed.

JUDGMENT

Since a common issue is involved in these appeals, both are heard and disposed by this common judgment.

2.Brief facts necessary for the disposal of these appeals are as follows:

Appellants are the respondents in CCP No.3/2023 on the files of the Real Estate Regulatory Authority, Thiruvananthapuram, filed by the respondent herein under section 31 read with section 71 of the Real Estate [Regulation and Development] Act 2016, [for short 'the Act 2016'], claiming compensation against the respondents therein. The respondent is an allotee of a flat constructed by the appellants and she has applied to purchase residential apartment No.11C and 11D in "Artech The Address" at Kuravankonam, Trivandrum. Thereafter, appellants 1 and 2 anticipating delay in completing the project, made an alternative offer to sell residential apartment No.7A having 3200 sq. ft. along with 1.22 cents undivided share and a car park for a total amount of Rs.1,77,00,000/- in "Artech Empire" apartment complex with the assurance to give possession and transfer the said apartment within 20 months of signing the construction agreement and respondent agreed for the same. There occured a delay in handing over the possession and title of the building and land. Thereupon a claim petition as CCP No.3/2023 was preferred. The Adjudicating officer framed the following points for consideration:

    (i) Whether the complainant is entitled to get Rs.26,55,000/- compensation under the head of loss suffered by her for the delay in 18 months as prayed?
    (ii) Whether the complainant is entitled to get Rs.10,80,000/- for the loss of rental income at the rate of 30,000/- per month for 36 months from 27.12.2018 till date since not registered the sale deed as prayed?
    (iii) Whether the complainant is entitled to get compensation of Rs.1,00,00,000/-(1 crore) as compensation for the shortage of 1.98 cents of undivided share in A schedule as prayed?
    (iv)Whether the complainant is entitled to get Rs.5,40,000/- paid as rent due to the delay of 18 months as prayed?
    (v) Whether the complainant is entitled to get Rs.10,00,000/- for the violations of obligations, concealment and misrepresentation of factum of construction of mall encroachment of 10 cents of property and caused disturbance to the peaceful possession and enjoyment by blocking free flow of air and sunlight and illegal use of incinerator on the terrace portion of the mall, 8 th floor, caused severe sickness to the complainant as prayed?
    (vi) Relief and cost The respondent was examined as CWI through Advocate commission and Exts. A1 to Ext A22 were marked. From the side of appellants no oral or documentary evidence were adduced. After completion of the evidence and hearing the adjudicating officer found as follows:
    i) Point No: 1 against the respondent as without any basis and not supported by oral or documentary evidence.
    ii) Point No: 2 against the appellants finding that there occurred delay in registration and respondent lost the chance of availing loan from financial institution due to non- registration and accordingly Rs. 5,00,000/- was awarded as compensation.
    iii) Point No: 3 against the respondent as without any basis and not supported by oral or documentary evidence.
    iv) Point No: 4 in favour of the respondent and the adjudicating officer accepting the rent at the rate of Rs.30,000/- per month awarded rent for the period from December 2017 to December 2018 i.e for 13 months computed at Rs.3,90,000/- with statutory rate of interest.
    v) Point No: 5 was found in favor of the respondent and she was found entitled to Rs.5,00,000/- as compensation for the inconvenience caused due to the construction of mall above 4 floor.

Thus the adjudicating officer allowed the claim petition and found that the respondent is entitled for Rs.13,90,000/- as compensation under the head Point No: 2, Point No: 4 and Point No: 5. The adjudicating off


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