The court established that a project with delays in completion falls under RERA's provisions, and mere local authority certifications do not suffice as valid completion certificates.

JUDGMENT :

J.Nisha Banu, J.

The appellant has approached this Court under Section 58 of the Real Estate (Regulation and Development) Act, read with Section 100 of the Civil Procedure Code against the order of the Tamil Nadu Real Estate Appellate Tribunal, Chennai dated 07.03.2022 passed in Appeal No.103 of 2021 on the file of TNREAT, which reversed the order dated 30.03.2020 passed in CCP No.30 of 2020 on the file of Tamil Nadu Real Estate Regulatory Authority (TN RERA), Chennai filed by the appellant herein.

2. The essential facts of the case would run thus:-

2.1. The appellant herein is a retired General Manager of Bharath Petroleum Corporation Limited, a Public Sector Undertaking. The respondent /Promoter has advertised for constructing a residential apartment complex at Thaiyur Village, Chengalpet Taluk in Thiruporur bearing the project name “January”. The said project comprised of construction of residential flats measuring 1396 sq.ft. in an undivided share of land, in a total land measuring about 5 Acres and 23.79 cents. The appellant being interested in the same, approached the respondent/ Promoter and on 30.07.2011, the appellant entered into a Memorandum of Agreement with the respondent/ Promoter. The total cost payable by the appellant was fixed at Rs.46,38,000/- (Rupees Forty-Six Lakhs Thirty-Eight Thousand Only) by the respondent/ Promoter for the alloted plot.

2.2. The schedule of payments, the specification of the flat and the amenities were provided under the Project name "January" as mentioned in the above said Memorandum of Agreement. As per the said Agreement, the flat was to be constructed within a period of 30 months, with a grace period of 90 days from the date of obtaining the sanction from the Authorities concerned. The respondent/ Promoter also agreed to provide ten other amenities which includes Club House, ATM, Restaurant, Supermarket, Gymnasium ...etc. apart from other common facilities.

2.3. As per the aforesaid Agreement dated 30.07.2011, the respondent /Promoter has to complete the construction and deliver the flat at least, on or before 30^th April 2014. But the respondent / Promoter handed over the keys of the flat only on 24.02.2018 and the club house facilities were handed over only on 26.01.2021. Therefore, the respondent/ Promoter has handed over the possession of the flat with a long delay of nearly 4 years from 30.04.2014 to 24.02.2018 and with regard to the other club house facilities, a delay of 7 years has been incurred on the side of the respondent/ Promoter.

2.4. Aggrieved against the delay incurred in handing over of the flat by the respondent/ Promoter, the appellant filed a complaint before TNRERA, seeking a direction to the respondent/ Promoter to pay a compensation of Rs.7,56,358/- (Rupees Seven Lakh Fifty-Six Thousand Three Hundred and Fifty-Eight Only), with interest at 18% per annum. By an order, dated 30.03.2021, the learned Adjudicating Officer, TNRERA, Chennai, directed the respondent / Promoter to pay a sum of Rs.5,56,358/- as compensation for delay and interest on the said amount at 10.05% per annum from the date of filing of the complaint until the date of payment, and a further sum of Rs.1,00,000/- towards compensation of mental agony, loss and hardship and additionally a sum of Rs.20,000/- towards litigation expenses.

2.5. Challenging the aforesaid order of the learned Adjudicating Officer, TNRERA, Chennai, the respondent/ Promoter has filed an appeal before the Tamil Nadu Real Estate Appellate Tribunal. The Appellate Tribunal reversed the order of the learned Adjudicating Officer, TNRERA, Chennai, vide order, dated 07.03.2022 made in Appeal No.103 of 2021, on the file of TNREAT, Chennai, thereby allowing the appeal filed by the respondent/ Promoter by holding that the project “January” of the respondent/ Promoter was 'not an ongoing project' and therefore, the same does not attract the provisions of the TN RERA Act and also inferred that the complaint made by the appellant is