When to file case for late delivery of flat
Dear Advocates,
I bought an apartment from a reputed builder few years back. The possession was supposed to happen by March 2014 according to the agreement. After that a grace period of 3 months up to June 2014 is provisioned in the agreement for providing delivery without any penalty. From July 2014 the builder is required to pay penalty for the late delivery of the property @ 9% per annum.
The builder hasn't delivered the property yet also they haven't paid any penalty yet. The builder is saying that they will pay the penalty along with the possession when they will deduct the penalty from the final settlement charges. At the same time they are not willing to tell how much penalty they are willing to give. The agreement mentions that the penalty will be given along with the final possession of the apartment.
Another point to note here is that the agreement is void after Dec 2014 because of another clause in the agreement. This clause says that if the builder is not able to give the delivery by Dec 2014, then the builder will return the money to buyers with interest starting Dec 2014 (no interest need to be paid till Dec 2014).
My questions is whether I should wait for the apartment to be delivered and check if the builder has given correct penalty at the possession or should I file a complaint in the consumer court right now demanding the money to be paid for the delay till date and then every subsequent month of delay. The builder is planning to give delivery by June 2015. I am worried that if I file a consumer complaint right now, the builder might get offended and create problems giving me possession or doing registration.
Other option for me is the ask for refund of the entire money with interest starting my payment date till date, now that the agreement is invalid. The agreement only provisions for interest post Dec 2014. Please suggest on this option as well.
Sachin
Asked 9 years ago in Property Law
Religion: Hindu
Dear Advocates,
With respect to this situation, I have updates and followup questions. Please help.
I received the possession letter from the builder in Sep 2015, along with the final demand note. The demand note doesn't deduct any late possession penalty. The builder now says that they are evaluating who is eligible for the late delivery penalty payment. They say that only the customers who have not delayed any payments are eligible for penalty. They are going to find that and pay those customers in next 2 months.
Now here is what I am considering. One of 2 Options:
1. I clear the final payment, sell the property to a prospective buyer and register the property to the prospective buyer. in this case, I don't need to pay the registration charges, so save on registration charges. Once the property is registered in third party name I will file a case in the consumer court to recover the delayed delivery penalty with interest along with other penalties related to unlawful behavior and mental agony etc.
2. I clear the final payment, register the property in my name and file a case in the consumer court. In this case I will need to suffer the registration charges and may need to hold the property for few years to get a better deal to recover the registration charges for the sale later.
My question to you experienced people - Is the Option 1 discussed above possible. Can I fight a case with the builder after selling the property and registering it to a third party. Is that legally possible? Would the court honor such a case? Or would the builder be able to flex his muscle power and influence the court to dismiss such a case? How can the third party react to this case? Can this third party block my claims or ask for a share?
Please suggest veterans.
Thanks,
Sachin
Asked 8 years ago
