• Development Delayed by Builder

Dear Sir,

My builder has delayed to complete my flat by 3 years. Once asked for the compensation for the delay, as they charge 15% for delay in making payment from us. They marked me below point of my agreement signed with the builder, stating due to "(i) Non-availability of steel, cement, other building material, water or electric supply." project got delayed and they are not liable to pay any interest in this circumstances as mentioned in our agreement.


23. Subject to the Purchaser not in breach of any of the terms hereof, the Builder/Promoter shall
endeavor to give possession of the said Residential Flat to the Purchaser on or before _____ day of
___________. The Builder/Promoter shall be entitled to a grace period of 6 months if he fails or
neglects to give possession of the said Residential Flat to the Purchaser on or before the date
aforesaid on account of reasons beyond its control. In the event, the Builder/Promoter fails to
handover the possession of the Residential Flat to the Purchaser beyond the said grace period of 6
months then in that event Builder/Promoter shall, on demand, pay to the Purchaser compensation
calculated at the rate of 12 per cent per annum on the amounts paid by the Purchaser from the date
of expiry of such grace period of 6 months, the Purchaser from the date of expiry of such grace
period of 6 months till the possession, of the Residential Flat, and handed over to the Purchaser.
Alternatively, on such expiry of the said grace period of 6 months, the Purchaser may by giving
notice in writing to the Builder/Promoter elect to terminate this Agreement and in such event, the
Builder/Promoter shall on demand be liable to refund to the Purchaser the amounts already
received by the Builder/Promoter in respect of the said Residential Flat with simple interest at 12
percent per annum from the date of cancellation till the date of refund. In the event of such
termination neither Party shall have any other claim, against the other, in respect of the said
Residential Flat or arising out of this Agreement and the Builder/Promoter shall be at liberty to sell
and dispose of the Residential Flat to any other person at such price and upon such terms and
conditions as the Builder/Promoter may deem fit. If as a result of any legislative order or regulation
or direction of the Government or Public authorities, or for reasons beyond the control of the
Builder/Promoter, the Builder/Promoter are unable to complete the aforesaid Building and/or give
possession of the said Residential Flat to the Purchaser, the only responsibility and liability of the
Builder/Promoter, upon the Purchaser exercising the right ti terminate this Agreement ,will be to pay
over to the Purchaser such amount attributable to the said Residential Flat that may have been
received by the Builder/Promoter without any interest within such time and in such manner as may
be decided by the Builder/Promoter. Save as aforesaid neither party shall have any right or claim
against the other under or in relation to this Agreement or otherwise however. Provided that the
Builder/Promoter shall be entitled to reasonable extension of time for giving delivery of the said
Residential Flat on the aforesaid date, if the completion of Building in which the said Residential
16
Flat is to be situated is delayed for reasons beyond the control of the Builder/Promoter including on
account of:
(i) Non-availability of steel, cement, other building material, water or electric supply.
(ii) War, civil commotion or act of God
(iii) Any notice, order, rule, notification of the Government and/or other public or
competent authority or for any reason beyond the control of the Builders/Promoter.
(iv) Economic Hardship.




When asked, out of these (Non-availability of steel, cement, other building material, water or electric supply), what was the thing that was not available and how much time it took, to make available for. They are saying, it's confidential and can not share with me.


Please suggest me, what should I do. Still awaiting for possession of my flat.
Asked 2 years ago in Civil Law from Navi Mumbai, Maharashtra
issue legal notice to builder . file complaint before consumer forum for deficiency in service .for payment of interest for delayed possession . since there is gross delay of 3 years builder is bound to pay interest . also seek directions that builder shall deliver vacant possession of flat within stipulated period
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
pls note that this is very common practice of builders and this way they are able to fetch more from the members,Try to amicablly settle this issue as dragging him to court will mean more delay in your project
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
You can present your issue in the front of consumer court to pay interest.
Amit Tyagi
Advocate, Meerut
2 Answers
1 Consultations
4.0 on 5.0
Issue a lawyer's notice to builder. Move to court against builder and ask for possession as per the agreement. Also seek compensation for deficiency in service. Since an agreement for sale has been entered into between you and builder he is bound to handover possession to you.
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
5.0 on 5.0
Your builder will have to be served al legal notice in the first instance to follow the clause given underneath which is binding upon him and speaks of his obligation towards you as spelled out in the agreement.

"In the event, the Builder/Promoter fails to handover the possession of the Residential Flat to the Purchaser beyond the said grace period of 6months then in that event Builder/Promoter shall, on demand, pay to the Purchaser compensation calculated at the rate of 12 per cent per annum on the amounts paid by the Purchaser from the date of expiry of such grace period of 6 months, the Purchaser from the date of expiry of such grace
period of 6 months till the possession, of the Residential Flat, and handed over to the Purchaser.Alternatively, on such expiry of the said grace period of 6 months, the Purchaser may by giving notice in writing to the Builder/Promoter elect to terminate this Agreement and in such event, the Builder/Promoter shall on demand be liable to refund to the Purchaser the amounts already received by the Builder/Promoter in respect of the said Residential Flat with simple interest at 12 percent per annum from the date of cancellation till the date of refund. 
In the event of such termination neither Party shall have any other claim, against the other, in respect of the said
Residential Flat or arising out of this Agreement and the Builder/Promoter shall be at liberty to sell and dispose of the Residential Flat to any other person at such price and upon such terms and conditions as the Builder/Promoter may deem fit. If as a result of any legislative order or regulation or direction of the Government or Public authorities, or for reasons beyond the control of theBuilder/Promoter, the Builder/Promoter are unable to complete the aforesaid Building and/or give
possession of the said Residential Flat to the Purchaser, the only responsibility and liability of the
Builder/Promoter, upon the Purchaser exercising the right ti terminate this Agreement ,will be to pay
over to the Purchaser such amount attributable to the said Residential Flat that may have been received by the Builder/Promoter without any interest within such time and in such manner as may be decided by the Builder/Promoter. Save as aforesaid neither party shall have any right or claim against the other under or in relation to this Agreement or otherwise however. 

Provided that the Builder/Promoter shall be entitled to reasonable extension of time for giving delivery of the said Residential Flat on the aforesaid date, if the completion of Building in which the said Residential Flat is to be situated is delayed for reasons beyond the control of the Builder/Promoter including on account of:
(i) Non-availability of steel, cement, other building material, water or electric supply.
(ii) War, civil commotion or act of God
(iii) Any notice, order, rule, notification of the Government and/or other public or
competent authority or for any reason beyond the control of the Builders/Promoter.
(iv) Economic Hardship.

if the reason assigned in shortage or delay in supply of raw material he shall have to prove the same once you choose to proceed against him before the consumer forum for deficiency in service. you may also file a regular civil suit for specific performance and payment of compensation/damages in addition to the remedy under the consumer protection act.
Tulika Prakash
Advocate, Gurgaon
113 Answers
66 Consultations
5.0 on 5.0

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