The main legal point established in the judgment is the interpretation of the exemption from registration under RERA and the applicability of RERA provisions to unregistered real estate projects.

JUDGMENT

(Common Prayer:These Civil Miscellaneous Second Appeals are filed under Section 58 of the Real Estate (Regulation and Development) Act, 2016, against the orders passed in Appeal Nos.70 of 2019 and 39 of 2020, dated 22.05.2020, by the Tamil Nadu Real Estate Appellate TNREAT, Chennai.)

Common Judgment:

1.These Civil Miscellaneous Second Appeals have been filed against the orders passed by the Tamil Nadu Real Estate Appellate Tribunal, Chennai (hereinafter, referred to as 'TNREAT') in Appeal Nos.70 of 2019 and 39 of 2020, dated 22.05.2020.

2. The facts, which led to the filing of these Appeals in brief are as follows:-

2.1 The appellants herein are the developers and the respondents 1 and 2 are home buyers. Both of them entered into a sale and construction agreement on 20.07.2017, with regard to the purchase of a property, bearing T.S.No.8, Block No.39, Door No.5, comprised in R.S.No.102 of 116, situated at Uruur Village, Jayaram Avenue, Vannanthurai, Sastrinagar, Chennai 600 020, measuring an extent of 5935 sq.ft.; bounded on the North by a house, bearing D.No.157, Selva Vinayagar Avenue; East by house, bearing D.No.7; South by Jayaram Avenue Road; and West by house, bearing D.No.3; that within the above four boundaries, 3 bed rooms residential apartment on the 3rd floor, measuring 2835 sq.ft. of built up area with common area and undivided share, measuring 1483 sq.ft; out of above 5935 sq.ft and that, the building to be known as 'Devi Narayan's Saisagar'', together with two covered car park.

2.2. In the said sale and construction agreement, the cost of the apartment was fixed at Rs.3,30,00,000/- and time for handing over possession of the property was fixed on 30.08.2017 and the said agreement contains a specific clause that after receipt of all payments, interior work at the choice of home buyers would be done. Out of the said amount, home buyers had paid a sum of Rs.3,06,00,000/- and the balance was Rs.24,00,000/- and after deducting TDS, stamp duty, registration charges, interest, etc., the cost of charge of scope in work comes to the tune of Rs.66,35,000/-. As per the said calculation, the developers have to refund a sum of Rs.42,35,000/- to the home buyers. Despite the home buyers have paid the required amounts as per the sale/construction agreement, the developers failed to hand over possession of the property. Hence, the home buyers sent a legal notice, calling upon the developers either to register the property in their names or to refund the amount paid by them. On receipt of notice, the developers denied all the allegations and the claim of the home buyers as illegal and also demanded Rs.9,21,356/- from the home buyers. Hence, the home buyers filed a complaint in C.C.P.No.46 of 2019 before the Adjudicating Officer for compensation and another complaint before the Real Estate Regulatory Authority in C.No.358 of 2019 for executing the sale deed.

2.3. In C.C.P.No.46 of 2019 filed before the Adjudicating Officer, the developers took a defence that the complaint itself is not maintainable, since before the Real Estate (Regulation and Development) Act, 2016 (hereinafter, referred to as 'RERA' or 'Act') came into force, the project has been completed and completion certificate was also issued. Furthermore, the developers denied the allegation with regard to the demand of cost and expenses of Rs.9,21,356/- from the home buyers.

2.4. The Adjudicating Officer, after hearing both the pleas of the home buyers and the developers, came to the conclusion that the developers are liable to pay a sum of Rs.13,31,644/- to the home buyers as compensation, Rs.25,000/- towards litigation expenses and directed the same to be paid by the developers within a period of 30 days from the date of receipt of the order and accordingly, disposed of C.C.P.No.46 of 2019, on 27.08.2019. Against which, the developers preferred an appeal in A.No.70 of 2019 before the TNREAT and the