• Can a builder consider demonetization as valid excuse for delaying possession?

Delay in possession of under construction Apartment and there is no communication informing me about the delay . As per the agreement , possession should be done within 36 months from date of allotment . Allotment date was 16th July 2014 . So, normal possession should be given by 15th JULY,2017.The expected date is already over . There was a clause of 6 months grace period . That time period is also over. On January 2018 , i made an enquiry and I was told that possession will be given by March ,2018. The simoco sanhita website www.sanhitarealty.com also published the same information,. Now this is March , I found the possession date displaying in simoco website is secretly changed to June . After sending emails with repeated follow ups, builder is telling that they will try to start the possession in September and will try to complete by December. BUT THEY ARE REFUSING to give any penalty or compensation for the delay . They are putting some lame excuses and are considering them a subject of Force Majuro clause . They are telling DEMONETIZATION is to be considered as force Majuro. Apart from that, they are also telling there is some issue in BLLRO office in mutation and local gram panchyet is not functioning properly. But the construction is not complete . So, at this step Gram panchayet does not play any role . I belive installation of lifts,clearance certificate will come into the picture once the construction is complete. . I stay in a rented house and this flat is purchased on home loan. Because of long delay in possession, I thought to sell out this flat and buy a ready flat . But they are forcing me a transfer charge if I want to sell out this flat as per the original agreement. But they are not willing to pay any compensation for their delay . They are making all the rules as one sided . 80 % of the flat value is alreday paid by me . Only last two payments are remaining . As per the payment schedule, I have to pay those amount on constructing of 7th floor. But the construction of 7th floor is not done till date . However, the normal possession date and grace period are over .

My questions are as follows.
 Can builder consider demonetization as force Majuro ?? 
If the answer is yes and they already decided to delay the possession should not they informed the buyers about the delay?
If Gram panchayet and BLLRO office is REALLY not functioning properly , should a buyer suffer for it ?
Builder already gave me in written that before September ,2018 they are unable to hand over the flats, but in website still they are showing June as possession month . Can I take any legal action for this ?
Am I not eligible to get any kind of compensation ?
Asked 4 years ago in Property Law
Religion: Hindu

13 answers received from multiple lawyers

Lawyers are available now to answer your questions.

13 Answers

1) You are eligible to get compensation on delaying possession of flat, because its builder duty to inform from time to time.

2) If he was facing problem of demonetization than he would had informed you at that time only by very legally in professional manner.

3) Than he is facing problems of Gram Panchayat and BLLRO. How suddenly he came to know that all problems he is facing right now.

4) You can make complaints in RERA and Consumer Forum at your local address in the city. for delay in project and possession of flat, due to this need to get compensation from builder.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

1) de monetisation cannot be considered as force majeure

2)builder should inform you of reasons for delay in writing

3)buyer should not suffer if panchayat office is not functional

4)you are entitled to compensation .

5) file complaint before RERA and seek compensation for delay in delivery of possession

Ajay Sethi
Advocate, Mumbai
87911 Answers
6207 Consultations

5.0 on 5.0

1. The reasons given by the builder does not fall under the category of ' force majure'. So this is lame excuse and you have your legal rights protected irrespective of claim of the builder.

2. Yes they must have informed the buyers about such delay.

3.It is not right to say that those offices do not run properly. These are again false representation and even if true the buyer is liable to be compensated for the delay.

4. Now coming to the question of your legal rights it is right to say that you can indeed take legal resources for which you can file case before the consume forum wherein you will get enough damages and compensation for te delay caused by the builder.

Fee free to connect.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1. No demonetization was not force majure, the builder was under obligation to inform you on delay on possession.

No the buyer shall not suffer as the builder signed the agreement and under which he is under obligation to take all the permissions before hand.

Yes your are eligible for compemsation file a consumer complaint with the district consumer forum against builder and claim damages for delay caused.

List of judgements where consumer forum granted compensation based on delay by builder

https://googleweblight.com/i?u=https://www.legallyindia.com/views/entry/recent-judgments-on-delay-in-delivery-of-possession-of-property&hl=en-IN&geid=1024

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. Demonitization can not be trated as force majeur.

2. You are eligible to get compensation for delay in possession.

File a case in the consumer forum

Contact a local lawyer who may do the needful for you

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Being a Consumer you can seek help from Consumer Court/ Forum.

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

4.0 on 5.0

1. No. Demonetisation does not come under the category of Force Majeure.

2. The builder has delayed in completing the construction of your flat as per the agreement for which they could not handover its possession to you and failed top register the sale deed in your favour which is illegal on the part of the builder.

3. You can file a complaint case against the builder alleging deficiency in service and unfair business practice claiming possession and registration of the flat with in next 2 months, payment of an amount towards rent prevailing in the same locality for the same area of flat booked by you for the delayed period till possession and registration is done, damage and cost.

4. You shall have to collect screen shots of the website of the builder where he has changed the date of possession severally.

5. You are required to act fast tp put pressure on the builder.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

The demonetisation issue prevailed only for three months and the things got stabilised once the crisis was over. Hence this cannot be considered as force majeure.

The builder is trying to take advantage over this.

In my opinion, he may not be able to handover possession by December also with the given situation.

You have an option to cancel the booking and claim refund with interest, failing which you may drag the builder to the consumer forum seeking relief.

You may report the matter to RERA also if it is registered and the RERA is effective in West bengal.

You may, alternately take possession when handed over and seek penalty for the period of delay in possession.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

1) file complaint against builder b fore consumer forum

2) if project is registered with RERA complain to RERA and seek compensation from builde for delay in completing project

Ajay Sethi
Advocate, Mumbai
87911 Answers
6207 Consultations

5.0 on 5.0

In my opinion, if you are interested in getting the flat, better wait till the possession being handed over and then approach consumer forum seeking penal interest for the delay in handing over beyond the permissible extent.

He may give any reply justifying his stand, dont be carried away, you can reserve the action to be initiated to the end till the time you are getting the property handed over.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

1. RERA has not been implemented in West Bengal yet.

2. You shall have to file a complaint case before the local District Consumer Dispute Redresssal Forum against the builder alleging deficiency in service and unfair business practice claiming possession and registration of the flat as suggested in my earlier post.

3. You can lodge complaint to the said website who will write to the builder and time will be wasted.

4. For getting relief from the builder, you need court order for which you shall have to file the complaint case as stated above.

5. The letter issued by the builder is meaningless and can be used as an evidence while filing the consumer complaint case.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

Natural calamities such as floods, drought, epidemic, earthquake, volcanic eruption, along with wars and government decrees, could be admitted under force majeure. However, labour strikes, market fluctuations, commercial considerations, increased input costs, litigation, etc, could not be claimed under this provision.

So the fancy reply of builder is to give you an pschycological effect we are aware of fact that the builder is duty bound to take all permission and approval in advance before promting any project.

The west bengal has already adopted RERA act but still not notified the bill so you can alternatively file a complaint for deficiency of service in District consumer forum the forum is an effective remedy in your case and you shall be given damages and compensation for the delay there are number of judgements by.national consumer comission on issue.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Generally demonitisation is not a force majeure and can't be considered. But we need to see what legally affected the builder for the same. If demonitisation legally affected him in a circumstance beyond his control then it may be considered as force majeure. They have to inform you. It's not your fault you can approach rera or Consumer forum.

Prashant Nayak
Advocate, Mumbai
27245 Answers
88 Consultations

4.4 on 5.0

Ask a Lawyer

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