• Delay penalty imposed by builder as due date crossed because of sudden death of my MIL.

Hi,
Our builder imposed a late payment penalty as our due date crossed because of sudden death of my MIL. We informed verbally same day and on mail within 5 days. Our loan was in process but we have to leave suddenly thus delaying it. We paid the complete amount within 15 working days of returning after completing the final rites. In between builder didn't informed about any penalty, infact not even after doing complete payment of flat. They stopped our flat fit out work and after pursuing them for a week or two they told us that we owe them a penalty that's why they have stopped our fit out. 
I want to know if any grace period is allowed in such "act of God " to complete payment or a buyer is totally at mercy of builder. Infact builder is charging penalty @18% while he paid us a mere sum of 70k for waiting for 3years and is charging around 60k as penalty for a period of one month that too because of death of a family member.
Please help
Asked 4 years ago in Property Law
Religion: Hindu

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14 Answers

1. The payment schedule and penalty, if any is t be determined as per the terms of the agreement.

2. So refer to the sale agreement , if any and check the penal clause.

3. if there is none then you are not liable for making a penal amount and if the builder refuses to provide the services as stipulated then you can bring the builder to the consumer forum and seek the appropriate remedy. 

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

1. You should file case against builder for charging inappropriate delay interest where you have make complete payment within one month of last date. 

2. The case should be filed Before RERA or consumer forum against unfair trade practices by builder.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Yes it's applicable in your case builder will be liable to pay the same rate as claimed by him from buyers

Prashant Nayak
Advocate, Mumbai
31807 Answers
176 Consultations

4.1 on 5.0

The penalty charges is exhorbitant 

 

2) the agreement is one sided , arbitrary 

 

3) file complaint against builder before consumer forum and seek orders to direct builder to deliver possession of flat to you and waive the penalty 

 

4) mention that for 3 years delay builder has paid measly Rs 70 k and charged you 60 k for one monthly delay in making payment 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

The judgment is applicable in your case 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

1. the penalty imposed by the builder is exorbitant, bad in law and illegal, 

2. you are advised to approach the Consumer Forum or RERA by way of filing a complaint in this behalf

Suneel Moudgil
Advocate, Panipat
2380 Answers
6 Consultations

4.8 on 5.0

Pay penalty amount under protest 

 

get registered sale deed executed in your favour take possession of flat 

 

then sue the builder to recover penalty amounts t 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

You can challenge all the aforementioned grounds in your rera complaint. Actually consumer court is appropriate to entertain all the aforementioned grounds as deficiency

Prashant Nayak
Advocate, Mumbai
31807 Answers
176 Consultations

4.1 on 5.0

Builder can claim penalty on same interest rate he paid to you. Interest rate shall be same for both builder and buyer. Also, builder had to raise penalty at the time of payment received, now cannot demand after full payment.

Without OC, you cannot be force to make payment. Complain to RERA.

You can also file FIR of cheating if builder not delivering possession with complete construction and OC or refund.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

Fit case to approach RERA, after serving a legal notice upon the Builder.

 

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

You should definitely make complaint with consumer forum or RERA against builder he just want to claim back the penalty he paid to you for delay in possession.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

You have rightly observed that the home purchasers are at the mercy of the builder once they enter into the venture.

Now you cannot fight against the builder since he has stopped the work, however you may make the payment under protest and after he completes the work you can fight against this menace through consumer court, if it is really worth fighting.

Please note that the death of your MIL is not the act of God to claim any exemption.

 

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

If you are sure of the said judgment by supreme court favoring the buyers in this regard, you may drag the builder to the consumer forum seeking additional amount at par with his claim  to the same  percentage he made his claim against you.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

If you are aggrieved by the decision of the builder demanding exorbitant amount i the name of penalty, you may either deny the payment or issue a legal notice asking him the reason for delay in claiming the said penalty or drag him to consumer court for unfair trade practices.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

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