• Regarding legal dispute on land

we have purchased the flat from A class builder,( a listed company) which is due for possession in march 2015, recently we have come to know some litigation is going on in respect of the land . sofar we have paid more than 60% of the amount ( all payment though cheque only). We are getting the demand note every month from the builder and regarding the litigation issues, builder has also confirmed that litigation is there but same is  man gable issue.The  building  completion has been 60% of the block.
in such scenario , will it be necessary for us to continue to honor the demand note.
should we hold our payment  and  wait for legal issue to be resolved;
can he levy the interest charge on delayed payment
Asked 2 years ago in Property Law from Bangalore, Karnataka
Wait till the legal issue is resolved. Whether the builder levies interest on delayed payment or not can be answered after going through the documents.
Shashidhar S. Sastry
Advocate, Bangalore
1233 Answers
59 Consultations
5.0 on 5.0
Thanks for your appreciation.
Shashidhar S. Sastry
Advocate, Bangalore
1233 Answers
59 Consultations
5.0 on 5.0
you should make payment on time . in event you default builder will charge you interest as per said agreement . as on date work is in  progress . honour your commitments .

 if after making full payment builder defaults in honouring his commitments you can drag  him to consumer forum and seek refund with interest and also seek compensation .
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
5.0 on 5.0
request builder to furnish copy of suit proceedings filed in respect of the land . builder is bound to disclose details of on going litigation  to all buyers
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
5.0 on 5.0
if builder has stated that there is some dispute regarding the land, take a written confirmation from him. Next, the progress of work has not been affected on account of this land dispute, court case, no interim injunction of any sort has been given to hamper the construction, if work stops then take builder to consumer court straight away.
But at any stage do not stop making payment towards the flat, if you default in making payment, you not only have to pay interest but the builder can terminate the agreement and re-sell the flat to a third party.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
5.0 on 5.0
Builder has accepted it fine, but you say u have come to know of litigation from other sources as well, try and obtain more details including certified copies from the respective court/s about the pending litigation and if possible try and send the same to me (Copies only) as and when u obtain these I will review these and state the next course of action if any.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
5.0 on 5.0
1. You should have checked about the said litigation before booking the property,

2. However, when you have already paid 60% of the agreed amount & when there is a clause of interest to be charged on delayed payment, there is no point in dishonouring his said demand notice,

3. Preserve all the documents you have when you enteted in to agreement with the builder viz., advertisement inviting bookings, brochure, agreement, demand notice etc. carefully,

4. If you do not get possession in time, file a complaint case before the local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming prevailing cost of similar type of flat in similar locality, damage & cost of litigation.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
229 Consultations
5.0 on 5.0
1.You can not defer the payment merely because there is some litigation against the developer.

2. As per the recent decision of the supreme court in Haryana State Agricultural marketing Board, the consumer can not defer payment even if the service rovider, in your case the developer is guilty of deficiency of service.

3. Continue your payments. In any case if the developer fails to deliver what he is stipulated to, you will be entitled to compensation and damages.
So nothing to worry.
Devajyoti Barman
Advocate, Kolkata
5189 Answers
54 Consultations
4.9 on 5.0
1)it is your own case that it is a reputed builder from bangalore . you have stated that it is A class builder . 

2) in case of  any litigation it is in interest of builder to resolve litigation on priority basis as other wise it may affect the viability of the project . if you call upon builder to furnish details of pending litigation builder is bound to make full and fair disclosure of the same . 

3) keep on making payments as demanded by the builder in the project . as mentioned earlier if builder fails to deliver possession of flat on making full payment you can move the consumer forum for necessary reliefs
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
5.0 on 5.0
Having gone through narrated details, I understand the followings :-

(a) You have purchased a flat from one "A- class" Builders (a listed company) and the delivery of respective possession of flat is due in March'2015. 
(b) You have already paid almost 60% of the total consideration (Cost) amount as agreed upon.
(c) You have come to know about existing litigation over the respective land, on which the building complex is being erected by the builders.
(d) Under such circumstance, you are stuck in making further payments as per demand of your builders as against due payment.

Having gone through it is concluded that You are the CONSUMER of the said Builders, whosoever they may be and the circumstances & facts enumerated by you attract the provisions of the Consumer Protection Act, 1986 for resolving your existing problems/grievances.
Shivesh Sinha
Advocate, Bangalore
9 Answers
7 Consultations
4.1 on 5.0

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