• Builder is not honoring agreement for buyback and arbitration

I have bought a flat in Gaursons sportswood Sector 79 Noida under below scheme-
“WHEREAS the said booking/allotment is under a special scheme of Company wherein the allottee(s) is having an option to surrender the booked apartment at the time of offer for possession and the allottee (s) will be entitled for the refund of total amount deposited along with the premium on the total cost of apartment. The premium shall be based on the calculation of 12% interest per annum over the total cost of apartment. Timely payment is the main essence of this scheme, the TDS at prevailing rates shall be applicable. In case the offer for possession delays beyond 31st December, 2016 the allottee (s) will be entitled for the refund of total amount deposited along with the premium on the total cost of apartment that premium shall be based on the calculation of 12% interest per annum over the total cost of apartment under this scheme immediately after 31st December, 2016. In case the allottee(s) opt to surrender the booked apartment prior to the period mentioned above, it shall attract the deduction as per the clause no.14 of this allotment letter.”

I have as per above option informed builder on 1st Jan'17 that I have opted to surrender the unit and asked to refund the amount with premium. The builder has not responded in 15 days time and than I have sent a legal notice also on 18th Jan'17 but again there was no response.

Please guide me about what all legal options I have to make builder pay me as per agreement. Can I go to national consumer forum as the consideration amount is Rs. 1 Cr though there is below clause in agreement for dispute, would this may bar me approaching consumer forum.

"That in the event of any dispute whatsoever arising connected to booked unit, the grievances of customer shall be referred first to consumer redressal forum formed by the CREDAI western UP. The said allotment is subject to arbitration by the designated committee of arbitrators appointed by the CREDAI and the decision of arbitrator will be final and binding on all parties."
Asked 7 years ago in Civil Law

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10 Answers

1) you are at liberty to file complaint before national consumer commission and seek refund of agreement as per clauses in your agreement

2) you can seek litigation costs and also compensation for mental torture undergone by you

3) inspite of arbitration clause you can file complaint before consumer forum as it is an additional remedy

Ajay Sethi
Advocate, Mumbai
95197 Answers
7607 Consultations

5.0 on 5.0

1. You shall have to file a complaint case before the State Consumer Dispute Redressal Commission against the builder alleging deficiency in service and unfair business practice claiming refund of the amount you have already claimed as per the agreement with interest, damage and cost.

2. this is a good case to win.

3. As a parallel measure, you can also lodge a police complaint against the builder bringing the charge of cheating against him for enticing you in buying the flat by making payment based on his false assurance and then running away with the said payment without complying with the agreed terms.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

Hello,

It is a settled law that that the remedy of arbitration available to the complainant does not bar the jurisdiction of the consumer forums and the consumer forums are not under an obligation to refer the matter to the Arbitral Tribunal. Moreover, if you have already served the legal notice upon them, you can now approach the National Consumer forum to represent your grievance.

In case you want any legal help at any point of time you can contact me on +91 or you can write a mail to me at .

Anilesh Tewari
Advocate, New Delhi
18079 Answers
377 Consultations

5.0 on 5.0

1. The supreme court has made it clear long back that both proceedings in consumer forum and before the arbitrator can go simultaneously.

2. So in spite of the arbitration clause you can file case before the national commission.

3. So don't waste time anymore and file the case asap.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
497 Consultations

5.0 on 5.0

Dear Concerned,

As this is a case of cheating as money taken on pretext of false promises , you can file a criminal complaint of cheating against the directors of the company . Additionally you may choose to file recovery suit fot recovery of this money however for a recovery suit you will have to pay court fees.

You can choose National Consumer Forum as well as the amount as per noted is over 1 crores - as the legal notice has been signed and no reply has been received from the developer it is better to file a criminal complaint followed by consumer complaint at the National Consumer Forum.

Best of Luck

Atulay Nehra
Advocate, Noida
1309 Answers
58 Consultations

5.0 on 5.0

1. if any arbitration clause is mentioned in agreement so first you should avail it thereafter if being aggrieved you can file case before national consumer forum(section 21 CPA).

2. you can also file a civil suit for specific performance of the contract but you have to pay court fee and it would be very high and it'll take long time to decide.

3. same relief shall be granted by the consumer forum at less court fee and swifter than civil suit so you should file case before national consumer forum.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

The agreement may be having such arbitration clauses, but be aware that the CREDAI is not law enforcing authority.

CREDAI is a not-for-profit company registered under Section 25 of Companies Act, 1956.

CREDAI seeks to create a favourable policy climate to ensure housing for all. CREDAI specially articulates the concerns of private housing providers.

To predominantly safeguard consumer interest, CREDAI insists on setting up of Consumer Redressal Forums through all its City Level associations.

Thus this agreement with the condition to aproach CREDAI alone for grievances is not binding in law, you can approach apex consumer redressal forum to get your grievances redressed.

T Kalaiselvan
Advocate, Vellore
85398 Answers
2235 Consultations

5.0 on 5.0

1) since builder has failed to respond to legal notice and refund your money file complaint before national commission and seek refund of money paid by you with interest, litigation costs and compensation

Ajay Sethi
Advocate, Mumbai
95197 Answers
7607 Consultations

5.0 on 5.0

1. File the complaint case before the local District Consumer Dispute Redressal Forum as suggested in my earlier post.

2. Also lodge the police complaint against the builder bringing the charge of cheating as suggested in my earlier post.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

after having issued him with a legal notice and waited for the statutory period, you may discuss with your advocate and file a case before the consumer court seeking remedy and relief.

T Kalaiselvan
Advocate, Vellore
85398 Answers
2235 Consultations

5.0 on 5.0

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