• Late possession penalty

I have an apartment in Faridabad which is ready for possession but the builder is not willing to pay any penalty even though the possession is delayed more than four years. I am seeking legal advice. Should I take possession or not? I have to pay around 10 lakkhs at the time of possession so I am wondering I should pay that now or should I file a complaint about it. Thanks
Asked 1 year ago in Property Law from Gurgaon, Haryana, Haryana
Religion: Sikh
first take the possession and pay the money that you have to and then file the consumer complaint in the consumer forum.

It makes sure that you have possession and hence secured.

And consumer forum id the speediest consumer redressal forum in the nation now.
Saptarshi Banerjee
Advocate, Kolkata
205 Answers
4 Consultations
4.9 on 5.0
1) pay Rs 10 lakhs and take possession of the flat under protest 

2) later file complaint before consumer forum for deficiency in service and seek interest on amount paid by you for delay in delivery of possession of flat 

3) you can also seek recovery of rentals paid by you for flat taken on rent during the said period 
Ajay Sethi
Advocate, Mumbai
24865 Answers
1338 Consultations
5.0 on 5.0
1. You can refuse to take possession if he is not paying the penalty in accordance with the agreement.

2. You may issue a lawyer's notice to him demanding possession with penalty. If he refuses to accede to your demand then you may move to court and seek possession with penalty and compensation.
Ashish Davessar
Advocate, Jaipur
18884 Answers
474 Consultations
5.0 on 5.0
A. Is there any penalty clause towards the delay of delivery in possession in the agreement? Even after you acquired the position in the flat that your right to claim for damages shall not extirpate from the builder.

B. However, in the absence of penalty clause in the agreement, the builder has bounden duty pay the nominal penalty as practice in your area for the delay of the delivery of the flat.

C. Issue a legal notice to the builder to pay the penalty amount else you are liable to face the future consequences in the Consumer Forum under the deficiency in the Service.

D. After the notice, if the builder not agreed to pay the penalty amount, you can approach the Consumer Forum under the deficiency in the Service and claim the damages for mental agony and calculate the amount as rent till 4 year delay period.
B.T. Ravi
Advocate, Bangalore
742 Answers
32 Consultations
5.0 on 5.0
1. Take possession now by paying your dues since the builder will refuse to give you possession if he comes to know that you are planning to take legal action against his giving possesion late,

2. After taking possession and getting the flat registered, file a complaint case before the local District Consumer Dispute Redressal fiorum alleging deficiency in service and unfair business pracice claiming penalty for giving delayed possesion with interest, damage and cost.
Krishna Kishore Ganguly
Advocate, Kolkata
12737 Answers
263 Consultations
5.0 on 5.0
Hi, better you can take the possession of the property by registering your name in the Sub-Register office and thereafter file a consumer complaint for claiming amount for penalty for delay in handing over possession of the property.
Pradeep Bharathipura
Advocate, Bangalore
4164 Answers
141 Consultations
4.3 on 5.0
you should get possession and send him a legal notice for compensation for mental agony, loss of money on rent etc. if he refuses then file complaint before consumer forum. if any delay caused by the builder he has to give compensation although there is no indemnity clause in agreement .


In Kishore Shriram Sathe vs Vivek Gajanan Joshi, it is held by the nation consumer forum that delay shall be treated as deficiency in services and buyer has right to get compensation for mental agony, having loss of money during delay period and interest @15% on the compensation amount for the period of delay.
Shivendra Pratap Singh
Advocate, Lucknow
2895 Answers
44 Consultations
4.9 on 5.0

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