• Penalty clause in construction agreement

Hi, I bought a flat in Bangalore and was promised by builder to give possession in June'2013.
But now apparently he will be able to give possession in March'2014 only.

So there is a delay of 9 months from his side in giving possession.

However, he has not added a penalty clause in the agreement for the delayed possession.

Being the first time buyer I somehow missed it. :(

So my question is that could I ask him for any compensation towards late possession when I do not have a penalty clause in my agreement? Is that my legal right in that case?

Please help.

Asked 4 years ago in Property Law from Bangalore, Karnataka
generally in construction of buildings delays are common as builder has to obtain over 100 approvals . you would be entitled to claim compensation if there is a clause in contract . in case there is no such clause builder will refuse to pay .take possession of flat . then move consumer forum for deficiency in service against the builder and seek compensation
Ajay Sethi
Advocate, Mumbai
45670 Answers
2684 Consultations

5.0 on 5.0

1. Did you not engage a lawyer to vet the agreement before signing it? A common blunder which people in this country commit is to venture to sign such agreements without consultation with a lawyer. Had you obtained professional legal advice from a lawyer he would have made a thread bare perusal of the entire agreement and advised the incorporation of the necessary clauses in the agreement which would have subserved your interest. As a matter of fact, once you sign on the dotted line on the agreement your legal rights, except to the extent bestowed and recognised by the agreement, get emasculated.

2. If there is no such clause in the agreement then the builder will not pay. You may though try your luck by filing a law suit for compensation in the court. 

3. Engage a lawyer and let him vet your agreement to ascertain what are your legal remedies and the magnitude thereof.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

Hi, you have to file consumer complaint for deficiency of service as the builder is failed to deliver the possession as per terms of the agreement.
Pradeep Bharathipura
Advocate, Bangalore
4551 Answers
203 Consultations

4.5 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer