What are terms of contract entered into with the builder ?
Is there a clause in contract about payment of Rs 500 penalty per square feet
3) if there is clause builder can impose penalty
Penalty
Builder asking after 45 days of registry that i have to pay per sq.feet 500 rs. panalty so i would like to ask what is the maximum penalty builder can charge as per law ?
Asked 7 years ago in Property Law
Religion: Hindu
5 Answers
No, builder cannot insist for any penalty after registration of property. No need pay any penalty to builder. The builder has no right to ask for penalty after 45 days of registry.
On what basis the builder is demanding the penalty? What does the sale deed say? Have you violated the conditions laid down in the agreement? Any penalty has to be in consonance with the agreement.
1. if such penalty is mentioned in agreement then penalty shall be levied accordingly.
2. if penalty is too high or irrelevant, you can file a suit under section 74 Indian contract act for justified penalty.
3. if such penalty is not mentioned in agreement builder cannot bound you to pay such penalty.
The rate of penalty that can be charged for delay in payment can be found in the sale agreement itself.
You may go through the clauses in the deed and decide to proceed.
If it is not containing any such clause then you can refuse to pay the same and ask him to proceed legally which can be challenged.
