• Exchange deed with builder

Hi,
I and 6 others resident of Mhada chawl had entered in an exchange deed with a builder in 2010. We had handed over our rooms to the builder in 2013 and in exchange agreed to take a flat in one of Builder's Redevelopment project. We are not registered member of that society. The builder had agreed to provide Temporary alternate accommodation but he defaulted on that. He then agreed to pay rent starting April 2013. He paid rent for 21 months in an untimely manner and later stopped paying rent starting Jan 2015. Each one of us have individual registered exchange agreement with the builder with same terms and conditions. We want to file a case against him. Is it possible to file a single case against the builder or everyone has to file separate case?

Regards
Yatin Tailor
Asked 6 years ago in Property Law
Religion: Hindu

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17 Answers

You have to file separate cases against builder 

 

2) sue the builder to deliver vacant possession of flat and to pay you arrears of rent as per your agreement 

Ajay Sethi
Advocate, Mumbai
96516 Answers
7779 Consultations

  1. As per the information mentioned in the present query, make sit clear that you all have been cheated by that builder.
  2. I advice you to all together should file a suit for specific performance of the agreement entered between both the parties.
  3. Along with that you shroud also ask for the interest over the amount which you have incurred on rent etc.
  4. I advice you to immediately file the suit, as you may also have to answer the limitation period also before the court.

Sanjay Baniwal
Advocate, South Delhi
5474 Answers
13 Consultations

Yes,you have all right to file a case against the builder as a person and you altogether file a single case against the builder. File a  a case jointly is better 

Unnikrishnan
Advocate, Kollam
8 Answers
2 Consultations

See since individual agreement are there it would be better to file a single case before the court against the builder. Though it is permissible under law that you all can jointly file a suit against him but things will be clear if single suit is filed before the court. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

There is no agreement to pay rent 

 

2) however you are entitled to temporary alternative accommodation 

 

3) file complaint against builder before consumer forum or RERA 

Ajay Sethi
Advocate, Mumbai
96516 Answers
7779 Consultations

If all the aggrieved parties have common grievances against the builder then they may file a suit jointly seeking their respective reliefs accordingly.

However it is advisable that each individual file separate case under the banner of a single advocate so that the reliefs can be sought separately.

T Kalaiselvan
Advocate, Vellore
86717 Answers
2317 Consultations

To the point 4, you may seek relief through consumer disputes reddressal forum

 

To the point 5, you may approach RERA with your grievances as an aggrieved party to redevelopment project, let them inform that you are not eligible for any relief through them after which you can take appropriate legal course of action.

T Kalaiselvan
Advocate, Vellore
86717 Answers
2317 Consultations

If possession is not delivered on time, you can send a notice to the builder, claiming the damages. “The buyer can also file a consumer complaint for ‘deficiency in service’ as defined under the Consumer Protection Act, 1986 against the builder. 

Mohammed Mujeeb
Advocate, Hyderabad
19306 Answers
32 Consultations

Regarding the rent you can approach one civil court. You have all right as a society ,kindly approach civil Court for both matter 

Unnikrishnan
Advocate, Kollam
8 Answers
2 Consultations

1. The case shall be filed before the civil court of appropriate jurisdiction that is City civil or the high court according to the territorial and pecuniary jurisdiction. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

You will have to file a suit against the builder 

All 6 members can jointly file a suit

You cannot invoke Rera as it doesn't cover society redevelopment matters

You can also intervene in society suit. But if the DA has an arbitration clause the matter would be decided by arbitrator

So if that is the case then its better to file a separate suit in HC

You will have to pay court fees depending on the claim amount

Max court fee is 3 lacs

 

Yusuf Rampurawala
Advocate, Mumbai
7649 Answers
79 Consultations

1. A joint matter, signed by all parties can be filed in the local Consumer Court, for all the mentioned grievances and proper damages & compensation can be claimed from the Builder, thru the orders of the consumer court.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Separate suit should be filed by the 6 residents 

 

2) court would not entertain single suit 

 

3) it would direct residents to file separate suit 

 

4) builder is responsible to honour commitments under contract 

Ajay Sethi
Advocate, Mumbai
96516 Answers
7779 Consultations

1. See if single suit is filed even if other party is not interested you can persue your cause of action.secondly there are Individual agreements so it would be easy for evidence if suit is single.

2. There is no disadvantage in single suit.

3. See if builder is terminated then the project need to be given to other builder claiming damages from builder.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

1. Nobody stops you from filing a suit alone

2. No disadvantage. If others wish to join, they can take out intervention application in your suit

3. RERA is applicable where a  buyer pays money to builder and builder defaults in his obligations. Your remedy is to file a civil suit

4. Exchange deed is very much valid. It has got nothing to do with termination of builder. Builder has entered into independent contract with you 

Yusuf Rampurawala
Advocate, Mumbai
7649 Answers
79 Consultations

1.  In a single suit the relief cannot be uniform to all the parties approaching the court,  hence it is not advisable to file a single  suit for everyone.

This can be done provided the relief is common for all.

 

2.  The disadvantages is that court may not be able to give separate reliefs to each individual as per their requirement.

 

3.  If you don get any relief through RERA then you may have to approach court alone for getting the desired reliefs.

 

 

T Kalaiselvan
Advocate, Vellore
86717 Answers
2317 Consultations

Dear Sir,

It is better to file a single complaint or/and single suit to avoid contradictory findings by the Courts. Always Courts avoid multiplicity of litigations and if it found there are similar suits then it will combine all of them and pronounce common judgment. Hire a high profile advocate and have faith on him without expressing your doubts on his integrity.  

Kishan Dutt Kalaskar
Advocate, Bangalore
6174 Answers
490 Consultations

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