The builder had to give possession on 30th April 2017, but now says that though progress of internal work is in final stages, the associated infrastructural developments will take time and shall be completed within the grace period of 1 year as per agreement. Is the builder eligible to take the relief of grace period of 1 year which is as per sale agreement? Also the builder charges interest for slight delay in payments from our part. Is he not liable for interest or penalty in terms of providing rent for non-delivery of flat on time (delivery date)?
Your agreement provides that builder had one year grace period for completion of construction of the flats
2) hence builder can take relief as per said clause
3) if he does not complete construction within grace period he will have to pay interest at same rate as he charges flat owners for delay in making payment
Hi
Your builder cannot take umbrage under the clause grace period and deny to pay you compensation citing grace period.
Grace period is applicable only in the event of force-majeure ( Standard clause found in construction and supply contracts, it exempts the contracting parties from fulfilling their contractual obligations for causes that could not be anticipated and/or are beyond their control. These causes usually include act of God, act of man, act of parliament, and other impersonal events or occurrences).
Based on our experience in handling cases at National Consumer Dispute Redressal commission, we can confidently state that in your case, the builder is liable to pay compensation for every day of delay commencing from April 30, 2017 and cannot claim umbrage under the grace period clause.
Hope this information is useful.
1. possession of flat cannot be given to the buyer until completion certificate of the flat has issued.
2. you should file a case before the consumer forum for compensation because builder cannot levy interest if work not done in scheduled time period. that grace period is void because flat owner is not empowered to give such period construction of flat is to be governed by the Maharashtra Regional & Town Planning Act, 1966 and no such provision is available in the said act.
3. hence you are entitled to get compensation for the delayed period and builder is bound to pay interest for that period if loan is sanction on the flat.
If there is a mention about the grace period in the sale agreement and the same has been agreed and signed by both the parties. then this registered sale agreement is enforceable in law.
The builder is certainly obliged to pay the penal interest for the delay in completion of construction beyond the stipulated period and grace period.
