1.If there was forfeiture clause then the advance money can be forfeited.However on this the builder can raise legal dispute and can bring injunction order of further constructions of the building.Hence it i s advisable that you resolve the dispute amicably.

2. It is usual for the new builder to remove the mess first so he can enter in to the fresh agreement with you.

3.that is the reason i am suggesting to talk to the old builder and meet his coenen.Else The whole project would be jeopardised for endless time.

Hi, it is best advisable to settle the matter amicably on mutual terms as any legal proceedings will further delay the work of the said project .. If you do not want to settle the matter outside the court, then wait for what legal proceedings the old builder initiates to recover the amount and likewise you have a MOU stating a forfeiture closure , that makes your case strong ..

Sir, it depends on the terms and conditions which the builder agreed to comply with for getting the tender. If in the terms and conditions it is mentioned that due to deficiency in service on the part of the builder the tender be cancelled and the builder forfeit the EMD, then it's ok. But you have to provide any cost incurred by the builder for redevelopment, provided he has account of everything.

you may go ahead and lodge an FIR against old builder for cheating and in light of the cancellation order may move to the civil court against the new builder for specific performance of contract.

If there was an arbitration clause in the MOU then you may also send him a notice for arbitration and invoke the same.

Let me know if you want me to send the arbitration notice for you.

Thanks in advance and regards

1) society need not pay old builder rs 26 lakhs

2) there was no progress hence contract with builder was cancelled

3)society can forfeit the EMD as there was no progress in construction

4) execute indemnity bond in favour of new builder to indemnify him in case any claims are made by old builder

Thanks for your appreciation

you may contact me or any of use for any kind of further assistance.

Thanks and Best of Luck

Upon perusal of all your documents suitable cancellation letter can be issued to the builder.

Society has 10 lakh EMD which can be returned back but in Tender there was forfieture clause. Please advise what should society do. Since new Builder is informing society to clear old matter then he will proceed further. We already have cancellation order from Registrar. Please advise

The society should adhere to the contract conditions in this regard and should invoke the forfeiture clause since the builder has committed breach of contract.

More over the registrar has already passed an order to cancel the agreement with the builder hence the builder has nothing to claim in it against the order, he may be asked to proceed through law which can be challenged properly.

The new builder has nothing to do with the old builder's settlement, if he is insisting on this then he may be shown doors and a new tender may be floated.

Thank you all for your valuable advise. Will discuss with society members and will revert. Thank you once again

You are welcome for your appreciations.

1. Since there was a forfeiture clause in the MOU, you are entitled to forfeit the said EM of Rs.10 Lakhs deposited by the earlier builder.

2. Send him a letter of his removal and also forfeiture of deposit.

3. Inform the new developer that your matter has been settled with then old builder and you are not gointbto entertain him or any of his claim in future.

Get the resolution in connection with all your steps as suggested above, passed in Special GM of your society conveyed for the specific purpose.