• Overdue settlement by builder in joint venture

Hi All,

I would request your help on the below situation I am facing now:

My husband had an ancestral property in Villivakkam Chennai which was put under joint venture with one of the local builders in Sep 2013. From the overall area of 3253 sq ft, the builder developed 10 flats and one was retained by us and rest is payable to us in cash settlement Rs,1,02,00,000. The builder agreed to pay us in ten months but he didnt pay us even half of the money till 2015.Then we further moved and cancelled the power of attorney which we gave to him for the entire property. By that time, he had 4 flats in his hand to register. After that, he started settling money slowly for want of registrations. Now he has to pay us rs.20 lakhs for the last flat, for which he had obtained full money from the buyer and we allowed that buyer to take possession from Jan 2015 , as the builder was agreed to settle us in Mar 2015.

Till date he didnt settle us that money and when I am asking him for a written agreement to pay the overdue money, he is postponing it every day with some reason.

The buyer got possession without registration and he is not forcing builder. The builder got his money entirely and not paying us, the final loss being borne entirelyby us. the worst part is that he responds very carelessly now a days as If we have got money from him and he does not even give due respect while speaking, asking us to proceed with any action.

Can I take legal action against this builder ( his wife is the proprietor ) for the overdue settlement?
What could be the best possible way to teach him a proper lesson and at the same time , we will get our funds soon?
Asked 12 months ago in Property Law from Chennai, Tamil Nadu
Religion: Hindu
The best possible way and fastest would be to file a cheating case against the wife of the builder U/s 420 IPC, get an F.I.R registered in her name and with help from the local police get her arrested. This way the builder who is very rude to you will come down for a settlement, sit and finalize and get your money out.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
5.0 on 5.0
1) it is necessary to peruse agreement signed by you with builder 

2) if the agreement contained a clause that builder has to pay you Rs 1. 02 crores you can file summary suit to recover Rs 20 lakhs as per your written contract 

3) you can also file police complaint of cheating and criminal breach of trust against the builder 
Ajay Sethi
Advocate, Mumbai
23118 Answers
1214 Consultations
5.0 on 5.0
1. If there is an agreement with clear terms that he has to pay certain amounts which he has not paid till date,you can certainly file a suit as per specific performance act praying for a direction upon him to pay you the balance amount,

2. You had made a mistake in allowing the buyer to occupy the flat before paying you,

3. have you given the builder the POA again to register the said flat? If not then do not register it and without registration the title of the flat is not conveyed to the buyer,

4. Engage an experienced local lawyer having expertise in this field.
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
5.0 on 5.0
Till date he didnt settle us that money and when I am asking him for a written agreement to pay the overdue money, he is postponing it every day with some reason.
If the builder is not responding properly, you may issue him a legal demand notice  and also inform him that on his failure to comply with the demand, a criminal case besides civil case for recovery shall be filed on him.




The buyer got possession without registration and he is not forcing builder. The builder got his money entirely and not paying us, the final loss being borne entirelyby us. the worst part is that he responds very carelessly now a days as If we have got money from him and he does not even give due respect while speaking, asking us to proceed with any action.
You may lodge a criminal complaint against him for cheating with the local police station.



Can I take legal action against this builder ( his wife is the proprietor ) for the overdue settlement?
What could be the best possible way to teach him a proper lesson and at the same time , we will get our funds soon?
Besides criminal complaint you may also initiate a consumer complaint against him with the jurisdictional consumer forum. and seek for compensation for mental agony too besides recovery of due amount.



T Kalaiselvan
Advocate, Vellore
13934 Answers
127 Consultations
5.0 on 5.0
Your husband must have executed a joint development agreement with the builder. The rights and liabilities of both the parties flow out of the agreement which ranks sacrosanct. The builder has to honour the promises reduced to writing in the agreement. Your husband can initially issue him a lawyer's notice to seek the amount which the builder is liable to pay him, If the builder does not comply with the demand raised in the notice then a lawsuit for recovery of money with compensation and interest can be filed against him.
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Property Lawyers

T Kalaiselvan
Advocate, Vellore
13934 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23118 Answers
1214 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5154 Answers
54 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
869 Answers
43 Consultations
5.0 on 5.0
Atulay Nehra
Advocate, Noida
425 Answers
15 Consultations
4.7 on 5.0
Ajay N S
Advocate, Ernakulam
1905 Answers
19 Consultations
5.0 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2729 Answers
41 Consultations
4.9 on 5.0
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0