I signed a joint venture agreement in the year 2014 with a builder. In the agreement, the builder committed to give me a full floor, 2 covered car parks and money. The builder has only paid 30% of the money mentioned in the agreement. Cheques written by him to my name has bounced four times in this four year period because of insufficient funds and now he claims to be bankrupt and wants me to settle the situation by selling my share of the property to him at a price that is below the average valuation of the land. I believe he has mortgaged the undisputed property illegally to finance the demolition, which he has already gone through with. I've written the word "illegally" because no mortgage rights were printed anywhere in the agreement or the power of attorney (which is void because of him missing out on an important clause for which he wanted me to give him another power of attorney). The builder has a total of four active companies under his wife's and his name. Three of them claim to be realty companies and one of it is a fully functional clothing store with proper sales. He also has several unsold flats in posh neighbourhoods. He isn't bankrupt, that is a lie. I want to sell my share but I do not want to sell it below the current value. How do i counter this?
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See since there is joint developer agreement still.you are owner of the land you can send a legal notice to builder stating that you shall cancel the agreement as builder is not undertaking work and paid in lieu of agreement as agreed along cancellation of power of attorney.
Further you can also file.a civil suit.for same he will.come.for compromise you can talk and settle. Or further can pursue the suit.
Refuse to sell your share below market value
2) get valuation done of your share done
3) in alternative terminate your agreement and sue builder for damages
Dear Sir,
First take encumbrance certificate and cheque whether there is mortgage or other transaction over the property. It is better to issue a notice to cancel the joint venture and forfeit the entire amount received by you as builder as violated most of the conditions. There after you can legally sell and enter into joint venture with another builder.
1. The development agreement and also the POA is required to be perused for giving proper advice.
2. If there is a clause of cancellation of the said development agreement for non compliance of the terms mentioned there in, then you ca striaghtway cancel the said agreement.
3. However, now also you can send him a legal notice calling upon him to comply with the erms of the said development agreement within next 1 month.
4. if he fails to comply with your said notice, you can send him a letter cancelling the development agreement you two had entered in to in the year 2014.
You need to follow the development agreement between you and builder I need not to transfer your property to him as he is running out of cash and is not solvent now in case he is going to be insolvent in that case you will be able to save your share in the development agreement
Please file a petition u/s 7 of Insolvency and bankruptcy code against the builder
You dont accept the offer of the builder and inform him that you will approach court for relief if he violates the conditions of the agreement between you both.
If he is claiming himself bankrupt, let him file an insolvency petition before court where you can bring all the details of all his assets held at various places.
You may discuss with your advocate on the practical situation and based on the prevailing atmosphere, you may decide further course of legal action.
If rera is applicable to you then you can file a Complaint or also approach consumer court. You can also Approach NCLT if it's a private limited company. You can file case under 138 of NI Act for cheque bouncing. You can file Complaint for cheating and forgery.
1. If the cheques drawn by him have been dishonoured due to insufficiency of funds in his account then have you adopted your remedies under Section 138 of NI Act by filing the complaint case? This is the most potent remedy as it is under criminal law which carries an imprisonment of up to 2 years, hence it acts as a great deterrent.
2. Your remedies under the civil law do exist. You may sue the builder in the consumer forum on the ground of deficiency in service as he has not discharged his contractual obligations. Before the consumer forum you may seek compensation from the builder.
