Order Complaint No. 802 Of 2021

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.802 OF 2021
01st Day of March, 2024
Corum:

Dr. N. Satyanarayana, IAS (Retd.), Hon’ble Chairperson
Sri K. Srinivasa Rao, Hon’ble Member
Sri Laxmi Narayana Jannu, Hon’ble Member

M/s Indian Timber and Sawmill
Through its Proprietor, Sri Kavuluri Peer Mohammad

…Complainant

Versus
M/s Aditya Constructions Company (India) Pvt. Ltd.
Through its Authorised Representative

…Respondent

The present matter filed by the Complainant herein came up for hearing
on 09.08.2023, 19.09.2023, 17.10.2023, 15.11.2023, 20.12.2023, 17.01.2024,
31.01.2024, 15.02.2024, 20.02.2024 before this Authority in the presence of
the Counsel for Complainant, Sri S. M. Subhan, and Counsel for Respondent,
Sri Srinivas Achanta & Sri M. Bhargav Venkata Naga Sai, and upon hearing the
arguments of the parties, this Authority passes the following ORDER:

2.

The present Complaint has been filed under Section 31 of the Real Estate

(Regulation and Development) Act, 2016 (hereinafter referred to as the “Act”)
read with Rule 34(1) of the Telangana Real Estate (Regulation and Development)
Rules, 2017 (hereinafter referred to as the “Rules”) requesting appropriate
action against the Respondent Builder.

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A. Brief facts of the Complaint
3.

The

Complainant

submitted

that

the

Complainant

purchased

a

residential Flat No: 407, situated in 4th Floor Beaumont, Empress Towers
Annex, consisting of 1700 Sft (Including common Areas), on 28.03.2019 for a
Total Sale Price of Rs. 1,10,00,000/- (Rupees One Crore Ten Lakhs Only) and
the Sale price includes Two Car Parking, Electricity & Water Charges and Club
Membership, that the Respondent have failed to complete the construction of
the flat. That the Complainant is paying Rs. 60,000/- (Rupees Sixty Thousand
Only) as rent to the existing house and not in a position to bear with the rent
and in spite of his calls and visiting the Respondent's office, Respondent failed
to handover the flat and there is no response even for Complainant’s Legal
Notice dated 09.09.2021, though received on 14.09.2021.

4.

The Complainant submitted as the Respondent adjusted an amount of

Rs.35,16,585/- (Rupees Thirty-Five Lakhs Sixteen Thousand Five Hundred and
Eighty-Five Only) for the timber supplied by the Complainant since 2013 vide
Letter dated 28.03.2019, by promising to give a flat. Whenever Complainant
visited the Respondent's office, he also informed concerned in the Respondent
office that he is ready to pay the remaining balance as per the Letter dated
28.03.2019 issued by Respondent, but there is no response from Respondent.

5.

The Complainant further submitted that the Complainant supplied the

material in the year 2014 and the said material cost was adjusted towards
advance payment for the flat on 28.03.2019 and as per the agreement the flat
should be handed over within 18 months i.e., by October, 2020.

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6.

Accordingly, the Complainant prayed that to handover the Residential

Flat No: 407, situated in 4th Floor, Beaumont, Empress Towers Annex,
consisting of 1700 Sft (Including common Areas) in a move in condition and to
direct the Respondent to pay Rs 6,00,000/- (Rupees Six Lakhs Only) as the
rental dues and continue to pay an amount of Rs.60,000/- (Rupees Sixty
Thousand Only) Per Month, till handing over the possession of the residential
Flat No: 407, and also to grant interest for the delayed period along with costs
of this petition.

B. Reply on behalf of the Respondent:
7.

Vide Reply dated 15.11.2023, the Respondent submitted that the

allegations mentioned in the complaint are neither true nor correct. He added
that the present complaint is not maintainable either in law or on facts as the
Complaint is barred by limitation and the same was liable to be dismissed. The
property above-mentioned does not come under RERA as the building
permissions and approvals sanctioned for the project in which the mentioned
flat is situated were all prior to the existence/implementation of RERA.

8.

The Respondent submitted that the Authority has no jurisdiction to

entertain this complaint as the permission for construction of the residential
blocks was obtained on 30.03.2015 and the Fire and Environmental
permissions were granted in the year 2013. That all the permissions with
regard to the construction were granted much prior to the implementation of
the RERA, i.e. 01.01.2017. The project in which the alleged flat booking was
carried out is an old project which does not come under the RERA Act, as such
the present Authority is not entitled to entertain the present complaint.

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9.

The Respondent submitted that the present complaint is filed based on

the alleged Credit Note said to be issued by the Respondent Company. But,
there was no clarity by whom the said alleged Credit Note was issued. No name
or designation was mentioned in the credit note or in the Flat Booking Letter
dated 28.03.2019. The amounts mentioned in the Credit Note on which the
present complaint is relying by the Complainant are the alleged payments for
the years of 2013-14. That all those payments were already barred by limitation
and the Complainant has created a credit note for the time barred payments
and showed that credit note as a basis for the advance amount for the sale
consideration

towards

the

flat.

The

Respondent

submitted

that

the

Complainant did not insist the Respondent for execution of Agreement of Sale if
the Complainant paid an amount towards the advance sale consideration
mentioned in the Credit Note.

10.

That there is no valid contract between the Complainant and the

Respondent with regard to the alleged sale of the flat. Clause 5 of the Flat
booking letter clearly states that, said Flat Booking Letter is a provisional one in
nature and execution of an Agreement of Sale in the Company's format is
mandatory. The Respondent further submitted that the Complainant herein
does not adhere to the terms and conditions/clauses of the Flat Booking Letter
on which he is relying and grossly violated them. According to Clause 2 of the
Flat Booking letter, "timely payment installments as per the work progress is
mandatory. In case of delay in making payments for first 30 days, an interest @
18% P.A. will be levied and beyond 30 days will attract an interest @ 24% P.A.,

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Non-payment of for 3 months after the due date shall lead to cancellation of the
flat and normal forfeiture clause would apply”.

11.

The Respondent submitted that the Complainant did not pay even a

single rupee after the execution of the alleged Flat Booking Letter towards the
balance sale consideration till to date or prior to the filing of this complaint.
That the Complainant is demanding the respondent to register the flat without
paying the balance sale consideration and filed the present complaint before
this Authority which is not having the jurisdiction to entertain the same.
Therefore, he prayed to dismiss the Complaint with costs.

C. Rejoinder by the Complainant:
12.

Vide Rejoinder dated 23.01.2024, the Complainant reiterated the

contents of his Complaint and further submitted that as the Respondent
received an advance amount from the Complainant in the month of March
2019, this attracts provisions of the Act, 2016 and as such the Respondent
Builder is liable for the costs and consequences thereof in the interest of justice
and fair play in action.

13.

The Complainant also submitted that it is evident from the Credit Note

No. 17 of 2018 that an amount of Rs. 35,16,585/- was received by the
Respondent but he failed to complete the construction of the flat and handover
the same to the Complainant.

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D. Hearing Conducted:
14.

The respective counsels appeared on final hearing and reiterated the

contents of their affidavits. While the Complainant urged that the Flat Booking
Letter dated 28.03.2019 protected its right as an allottee under the Act, 2016
and therefore, is entitled to his relief as prayed for by registering the Flat No.
407, situated in 4th Floor, Beaumont, Empress Towers Annex, consisting of
1700 Sft (Including common Areas) in a move in condition and others. Per
contra, the Respondent denied the existence of the Flat Booking Letter and the
Credit Note dated 28.03.2019 and submitted that, even assuming that the said
Letter and Note dated 28.03.2019 are admitted, the Complainant failed to
adhere to the terms of the Flat Booking Letter and therefore, cannot approach
this Authority at a belated stage to seek registration of the Flat.

15.

The Respondent also submitted that the permissions and approvals for

the Project, Beaumont, Empress Towers Annex was obtained prior to
01.01.2017, thereby making the Act, 2016 inapplicable on the said Project and
that therefore this Authority does not have jurisdiction to entertain the present
Complaint.

E . Observations and Directions of the Authority:
16.

It is observed from a perusal of the record that for alleged exchange of

supply of timber, the Respondent issued a Credit Note and a Flat Booking
Letter to the Complainant. However, the Respondent, during the hearing, as
well as in its Reply, has denied issuance of any such Credit Note and a Flat
Booking Letter dated 28.03.2019. In the absence of an admission by the
Respondent of the said Credit Note and Flat Booking Letter, and the failure of

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the Complainant to provide any substantial evidence to prove the existence of
the same, this Authority is of the view that no action can be taken by this
Authority with respect to the relief prayed for by the Complainant.

17.

In lieu thereof, the Complaint stands disposed of and the Complainant is

directed to approach appropriate forum for crystallization of their rights.

18.

If aggrieved by this Order, the parties may approach the TS Real Estate

Appellate Tribunal (vide G.O.Ms.No.8, Dt.11-01-2018, the Telangana State
Value Added Tax Appellate Tribunal has been designated as TS Real Estate
Appellate Tribunal to manage the affairs under the Act till the regular Tribunal
is established) within 60 days from the date of receipt of this Order.

Sd/Sri K. Srinivasa Rao,
Hon'ble Member,
TS RERA

Sd/Sri Laxmi Narayana Jannu,
Hon'ble Member,
TS RERA

Sd/Dr. N. Satyanarayana, IAS (Retd.),
Hon'ble Chairperson,
TS RERA

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