CHENNAI: In a verdict that can have a significant impact on the interests of homebuyers, the Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has held that homebuyers pursuing compensation claims before TNRERA from builders for violation of contractual obligations cannot file complaints beyond the limitation period of three years from the date of proposed completion of projects even if the actual handing over of the projects gets delayed beyond the agreed date.
Dismissing an appeal filed by two homebuyers against Tata Value Homes Limited over alleged deficiencies in their apartment at a project in Kuthambakkam, the tribunal upheld an earlier Tamil Nadu Real Estate Regulatory Authority (TNRERA) order dated December 24, 2025, which had dismissed their complaint.
The tribunal observed that TNRERA and the appellate tribunal are judicial forums vested with the powers of a civil court and Section 3 of the Limitation Act mandates dismissal of proceedings instituted after the prescribed period, even when limitation has not been raised as a defence.
The tribunal rejected the appellants’ contention that the delay in handover of possession constituted a continuing cause of action that could extend the limitation period.
‘Compensation claims can be filed within statutory limitation period’
Ruling that the Limitation Act, 1963, applies to proceedings before the TN Real Estate Regulatory Authority (TNRERA), potentially restricting homebuyers from pursuing compensation claims filed beyond the prescribed time limit, the tribunal held that claims for compensation for breach of contractual promises must be filed within the statutory limitation period.
As per the appellants’ submission, they had taken possession of their apartments after March 2018, but the tribunal held that the contractual deadline for handing over possession, including the grace period, was January 31, 2017. Since the cause of action arose on February 1, 2017, the three-year limitation period expired on February 1, 2020, the tribunal held.
The homebuyers had filed their complaint before TNRERA on February 23, 2023 regarding dispute with the realtor over refunds and compensation, including claims relating to variations in saleable area and undivided share of land, maintenance charges, utility connections, legal and documentation charges, diesel generator charges, and escalation costs.
The tribunal had relied on recent SC judgments to examine whether limitation provisions apply to quasi-judicial bodies. It held that the Real Estate (Regulation and Development) Act, 2016, does not expressly exclude the application of the Limitation Act.
Limitation covers RERA
Ruling that the Limitation Act, 1963, applies to TNRERA, the tribunal held that homebuyers should file claims for compensation for breach of contractual promises by builders within the statutory limitation period of three years.
