• Builder not completing pending work

Respected Sir/Madam

“X’ Partnership firm entered Joint Development Agreement with Mrs. “A” and the Builder constructed apartment, the apartment consist 9 Flats. The sharing ratio between builder (X Firm) 5 Flats and landlord (Mrs. A) 4 Flats.
We four ( 4 ) present owner has purchased builder share from 2018, 2019 and 2020, builder still retaining one flat, and Landlord not sold any flat till now.
At the time of Purchase there was some pending work such as power back formation of association, painting and other works, the builder promised the pending work will be done post registration but till now the pending work is not done. 
After purchasing the Flats we have paid monthly maintenance to builder for maintaining the apartment and we have reminded and requested several times to compete the pending work but the builder is not done the same.
In the year 2020 (Corona situation), we have suffered a lot, due to lack of maintenance, we raised the issue with builder and builder called a meeting by giving notice. 
We attended the meeting and provided the list of pending work which is need to complete. The Builder accepted the list and promised to complete the pending work as soon as possible. 
Further the builder expressed his inability to visit the building and monitoring maintenance, collecting bills, payment, supervising cleanliness. The builder requested flat owners to take care of building maintenance until completion of pending work along with formation of association. 
One of the Flat owner accepted to do maintenance of building as the builder expressed his inability to visit and supervision the building maintenance in Covid Situation. 
After that we have requested several time with builder for completion of pending work but the builder was not considered our request. Due to maintain the building cleanliness, we the flat owners have started maintaining the building in rotation basis and same is continuing till now. 
My concern is can the Flat owner can sue against builder for pending work even the flat owners are purchased in 2018, 2019 and 2020. Please advise. 

Thank you in advance.
Asked 10 months ago in Property Law
Religion: Hindu

4 answers received in 1 hour.

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9 Answers

You can file a complaint against the builder under consumer protection act and since the cause of action is continuous as well as you have evidences to periodical reminders to the builder you may file a complaint for deficiency in service against the builder before the consumer disputes redressal commission.

 

T Kalaiselvan
Advocate, Vellore
90058 Answers
2499 Consultations

yes. Subject to just and exception of agreement,  flat owners or purchasers can sue builder for completing builder. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

You can issue legal notice to builder to complete the pending work 

 

if he fails to do so file complaint against builder before consumer forum and seek orders to direct builder to complete pending work and also seek compensation for mental torture undergone by you 

 

3) also seek litigation costs 

Ajay Sethi
Advocate, Mumbai
99856 Answers
8148 Consultations

Yes flat owners can sue the builder 

Prashant Nayak
Advocate, Mumbai
34569 Answers
249 Consultations

1. As far as a complaint before the consumer commission the same should be file within two years from the date of cause of action, the consumer court  will not entertain any complaint beyond two years period of time.

2. If you are individually affected and aggrieved then you only have to initiate steps without depending on others to join you or support you.

3. The land lord is not affected hence he is not bothered about others, this will not stop you from raising your concern before the appropriate legal forum to get proper reliefs. 

T Kalaiselvan
Advocate, Vellore
90058 Answers
2499 Consultations

Builder should complete work within reasonable period 

 

2) if builder fails to complete work file complaint against builder before consumer forum 

Ajay Sethi
Advocate, Mumbai
99856 Answers
8148 Consultations

The limitation to approach consumer court is 2 years  but in your case it’s continuous cause of action and you can file the same now too

Prashant Nayak
Advocate, Mumbai
34569 Answers
249 Consultations

Yes, the flat owners can take legal action against the builder for the pending work, even though the flats were purchased between 2018 and 2020. Here are the key legal aspects to consider:

  1. Time Limit for Legal Action (Limitation Period): As per the Limitation Act, 1963, claims related to breach of contract or specific performance typically have a limitation period of three years from the date of the breach. However, in your case, the builder continued to acknowledge the pending work and even held a meeting in 2020 where he promised to complete the work. Such acknowledgments can extend the limitation period. If there is continued correspondence or reminders from your side, this may also help in keeping the claim valid.

  2. Rights of Minority Flat Owners: Even if the majority of the flat owners agree to the present situation and choose not to demand the pending work, it does not take away the rights of individual buyers. Each buyer has an independent contractual right to demand completion of the promised work. You can individually or collectively file a complaint against the builder.

  3. Effect of Landlord’s Inaction: The landlord’s inaction does not affect your rights as a purchaser. The builder had an obligation towards the flat buyers based on the terms of sale and the promises made. The landlord's silence does not absolve the builder of liability.


Legal Remedies Available:


  • Consumer Complaint: You can file a complaint in the Consumer Commission under the Consumer Protection Act, 2019, seeking directions for the builder to complete the work, along with compensation for mental agony and deficiency in service.

  • RERA Complaint: If the project is registered under RERA (Real Estate Regulation and Development Act, 2016), you can file a complaint with the RERA authority for non-completion of promised work.

  • Civil Suit: You can also file a civil suit for specific performance and damages against the builder.

Since the builder has delayed for years, it is advisable to issue a legal notice first, demanding completion of pending work within a stipulated time. If there is no response, you can proceed with legal action.

Aman Verma
Advocate, Delhi
504 Answers

Yes, the flat owners can take legal action against the builder for not completing the pending work, as this would typically constitute a breach of contract under the Joint Development Agreement. Here are some key points:

  • Time Limit:
    There is a statutory limitation period (usually around three years from the date the cause of action arises) during which you must file your claim. This period may vary based on the specific terms of your agreement, so it's important to check the contract details.

  • Individual Rights:
    Even if most purchasers agree to the current situation, each buyer retains their own rights under the contract. A majority decision does not automatically waive the right of a minority owner to claim damages or compel performance from the builder.

  • Landlord's Role:
    The landlord’s decision not to act does not affect your individual legal rights against the builder. If the builder has failed to complete the promised work, you can pursue legal remedies independently.

Shubham Goyal
Advocate, Delhi
2124 Answers
16 Consultations

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