• Interest on late payment and builder not paying penalty for delay

We had booked a flat in noida supertech in jan 2011. We opted for construction link plan for payments. The possession was scheduled in april2013. We have been charged with interest on late payment. We delayed on payment by 3 months as their were farmer agitations going in noida in 2012 after consulting with the builders financial dept but nothing was confirmed in writing from their end. Another reason while booking the flat their marketing person told to pay 50000 and then within one month pay the complete first instalment.same considered under late payment Blythe builder. Few delays due to late disbursal of loan from bank. Pls suggest if we are liable to pay the interest charged.
we got a pre possession letter from the builder in July 2015. Possession is delayed. In the slot men letter it I mention that compensation clause on builder is applicable to only those customers who have honour the pay net schedule as peragreed allotment letter. Pls suggest if we can demand the compensation and also suggest when should we do that and how.
Asked 1 year ago in Property Law from Delhi, Delhi
Religion: Hindu
1) your priority should be to take possession of the flat and pay the interest amount demanded for delayed payment 

2) later move consumer forum and seek compensation for delayed possession of flat for period of  2 years 
Ajay Sethi
Advocate, Mumbai
23371 Answers
1224 Consultations
5.0 on 5.0
Hi, as per the terms of the agreement the builder is scheduled to deliver the apartment in 2013 but  the builder has failed to do so know you can file a complaint in the consumer forum for damages as the builder has failed to deliver the possession in time and there is a deficiency of service on the part of the builder.

2. If you don't pay the installment in time then builder is entitled for interest and this is nothing to do with the delivery of possession. 
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
The agreement will contain terms for both sides to comply, if the builder is charging penalty for late payment then he is liable for penalty for delay in completion of construction and handing over possession properly with the occupation certificate obtained from the competent authority.  You may issue legal notice demanding penal interest from him for delay in completion of construction, failing to invoke any response the builder may be drawn to consumer forum with a complaint case for deficiency of service demanding due compensation for the pecuniary and other losses suffered therein. 
T Kalaiselvan
Advocate, Vellore
14154 Answers
127 Consultations
5.0 on 5.0
1) cases in consumer forum take over 2 years to be disposed of 

2) if builder is offering physical possession of flat take actual physical possessionof flat pay amount of interest demanded under protest then move consumer forum
Ajay Sethi
Advocate, Mumbai
23371 Answers
1224 Consultations
5.0 on 5.0
Without a registered sale deed the possession of the completed flat will not be considered legal or valid in the eyes of law. 
Consumer forum will consider proper proof narrating the problem and the relief sought for thereto.
T Kalaiselvan
Advocate, Vellore
14154 Answers
127 Consultations
5.0 on 5.0
1. The delay in disbursal of loan from the bank does not absolve you from the liability to pay interest for the delayed payment. Unless the delay is due to an act of the builder the buyer has to bear the consequences of the delay.

2. Compensation for delay in possession cannot be claimed by you if you have not made the payment in accordance with the schedule of payment. 

3. Possession follows the registration of the property. It does not precede it.

4. Going to consumer forum will be a colossal wastage of time and money.
Ashish Davessar
Advocate, Jaipur
18205 Answers
449 Consultations
5.0 on 5.0

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