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2024 Supreme(Mad) 2397

IN THE HIGH COURT OF JUDICATURE AT MADRAS
J. NISHA BANU, R. KALAIMATHI, JJ.
M/s. KSM Nirman Private Limited - Appellant
Versus
Olympia Grande Apartments Owner's Welfare Association - Respondent
C.M.S.A. No. 38 of 2021, C.M.P. Nos. 7284, 4209 of 2021, 15035 of 2022
Decided On : 20-11-2024

Advocates:
Advocate Appeared:
For the Appellants :Isacc Mohanlal, M.V.V.N. SivanthyFor the Respondents: S.R. Rajagopal, Hari Radhakrishnan

RERA applies to ongoing projects regardless of completion status, ensuring consumer protection and allowing for grievances to be raised under its provisions.

Headnote:(A) Real Estate (Regulation and Development) Act, 2016 - Sections 3 and 79 - Complaint by owners' association regarding project grievances - The Tribunal determined that the regulations apply to ongoing projects, affirming the complaint was maintainable despite completion certificates being issued prior to RERA enactment. (Paras 6, 7, 8)

(B) Maintenance Duties - The promoter's obligations extend beyond possession handover, with liability for defects specified in RERA. (Paras 7, 8)

(C) Completion Certificates - There is a distinction between partial and final completion certificates under RERA, necessitating registration for ongoing projects. (Paras 4.10, 4.12, 4.19)

Facts of the case:
M/s. KSM Nirman Private Limited completed a residential project comprising 16 towers before the RERA Act came into force. Disputes arose as the owners' association sought legal remedies for project issues. The Regulatory Authority dismissed their complaint, prompting an appeal.

Findings of Court:
The Tribunal confirmed the complaint's maintainability, emphasizing the ongoing applicability of the RERA Act to disputes arising from completed projects before the Act's enforcement.

Issues: The court addressed the applicability of RERA to completed projects and whether the owners' association could pursue claims despite prior completion certificates.

Ratio Decidendi: The court reasoned that the RERA Act applies to all ongoing real estate projects, asserting the Tribunal's ruling supported consumer protections in the real estate sector.

Result: Appeal dismissed.

Table of Content
1. overview of case and facts leading to appeal. (Para 1 , 2)
2. arguments by the appellant regarding applicability of rera. (Para 3)
3. counterarguments by respondent and interpretations of rera. (Para 4)
4. court's analysis of legislative intent behind rera. (Para 5)
5. court's observations on maintainability and directives to regulatory authority. (Para 6 , 7 , 8)
6. conclusion dismissing the appeal. (Para 9)

JUDGMENT :

J. NISHA BANU, J.

1. Challenging the order passed by the Tamil Nadu Real Estate Appellate Tribunal (TNREAT) in Appeal No.75 of 2019, dated 09.11.2020, the aggrieved respondent therein/Developer, has preferred the present Civil Miscellaneous Second Appeal. The Tamil Nadu Real Estate Appellate Tribunal, set aside the order in C.No.327/2019 dated 6.11.2019 and directed the Regulatory Authority to dispose the complaint on merits.

2. The necessary facts leading to the filing of this appeal would run thus:

2.1.The appellant herein, M/s.KSM Nirman Private Limited, presently known as M/s.Olympia Tech Park (Chennai) Private Limited, commenced the project in the year 2012 (16 residential towers with 744 apartments and 1 commercial tower). On 26.04.2012, the appellant has obtained the planning permit and also obtained the building plan approval from CMDA, which is the competent authority. The appellant completed the construction and obtained completion certificates in a phased manner in three phases as stated below:

(i) For the 1st phase of 9 Blocks, the 1st Partial Completion Certificate was issued by the competent authority CMDA dated 13.05.2015;

(ii) For the 2nd phase LIG (2 blocks), the 2nd Partial Completion certificate was issued by the competent authority CMDA dated 06.11.2015;

(iii) For the 3rd phase of 7 blocks 3rd Partial completion Certificate was issued by the competent authority CMDA dated 15.02.2016.

The term "Partial" was used in the above Completion Certificates because the completion of the project was in a phased manner as contemplated in the Explanation to Sub Section 2 of Section 3 of RERA Act, read with Section 2 (q) thereof.

2.2. The apartments were handed over to the respective purchasers in a phased manner, after completion of the phases during the period from the years 2015 to 2016. The apartment purchasers created an Owners' Welfare Association in the year 2016 (Olympia Grande Owners Welfare Association)/ the respondent herein and registered it with the Registrar of Societies vide registration certificate dated 23.11.2016.

2.3. The respondent Association took control of the common area and its maintenance in June 2017 and it is now under the control and maintenance of the Association since then. As far as the 17th tower (Commercial) is concerned, a revised planning permission was obtained from CMDA and the Project Completion Certificate for the entire project was obtained on 06.12.2017.

2.4. Mr.Isacc Mohanlal, Senior Counsel, appearing on behalf of Mrs.M.V.V.N.Sivanthy, learned counsel for the appellant would contend that the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred as 'RERA') was notified with effect from 26.03.2016, and so far as the State of Tamil Nadu is concerned, it became operational from the date of framing and notification of the Tamil Nadu Real Estate (Regulation and Development Rules), 2017 with effect from 22.06.2017. As such, the main contention of the learned Senior Counsel is that the said Act and the rules which came into operation in Tamil Nadu from 22.06.2017 cannot operate in respect of the Real Estate Projects which were completed on or before the said date i.e. 22.06.2017, in as much as the projects in the present case (16 residential towers) came to be completed and handed over to the allottees on the strength of Completion Certificates dated 13.05.2015, 06.11.2015, & 15.02.2016.

2.5. According to the learned Senior Counsel, registration for the Real Estate Projects is mandatory under the Act only in respect of ongoing projects and for "futur

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