• Compensation for delayed completion of apartments

As per Apartment Buyers Agreement, the builder is bound to pay compensation at Rs 10/- per sq.ft per month of delay. In my case, the handing over has been delayed for about 45 months and so, I believe, the builder has to pay compensation for the delay.
But he is denying paying the compensation, saying that the penalty on delayed delivery is being applicable only to customers who have not defaulted payments or to customers who have delayed payments within 30 days time frame.

In my case there was a delay of 31 days in paying one installment, one day delay in paying another installment and 2 days each delay in paying other 2 installments, out of total 13 installments.

Pls advise whether I am eligible for the compensation or not, and if eligible what should I do next as demand notice for final settlement has already been received from the company and due date for making the final payment and submitting the signed documents are on 18-01-2016
Asked 2 years ago in Property Law from Qatar
Religion: Muslim
The builder is adopting tactics to avoid payment of the penal amount due to delay in completion of construction.
He may quote any such reason but since he has taken penal charges for the defaulted payments, he is legall bound to pay the penalty for delay in completion of construction.
If the builder is not obliging, you may first issue a legal notice demanding the said penal amount.
If he is not complying with the demand made nor has give any reply you may drag him to consumer forum seeking to pay the penal amount as well as compensating the costs for mental agony.
The builder will come running o you with a compromise package then you can dictate terms. 
T Kalaiselvan
Advocate, Vellore
36975 Answers
403 Consultations

5.0 on 5.0

1) it is necessary to peruse agreement signed by you with builder to advise

2) builder is bound to pay you compensation for delay in delivery of possession as per your agreement 

3) similarly if you have delayed payment of installment builder can charge you interest for period of delay 

4) make final payment under protest . take possession of flat and then move consumer forum against builder for recovery of compensation . 
Ajay Sethi
Advocate, Mumbai
46832 Answers
2769 Consultations

5.0 on 5.0

1. The said clause in connection with payment of compensation for delay in handing over possession is required to be perused for advising properly,

2. Is there any clause mentioned in the said agreement stipulating that the said  penalty on delayed delivery is applicable only to customers who have not defaulted in making payments or to customers who have delayed payments within 30 days time frame? 

3. If yes, do you have any reason for making the said delayed payment which can be attributed to some act of the builder?

4. If yes or if there is no such clause for avoiding payment of penalty for late delivery, then you can file a complaint case before the local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming the said penalty with interest, damage and cost.
Krishna Kishore Ganguly
Advocate, Kolkata
18785 Answers
454 Consultations

5.0 on 5.0

Hi, As per the agreement if the builder has fail to deliver the apartment with in agreed time   then he has to compensation.

2.  Now the builder has refuse to pay the compensation so you can file a complaint in the consumer forum against the builder for deficiency of services.

3. Delay in payment will not applicable to your case and you are eligible for compensation.
Pradeep Bharathipura
Advocate, Bangalore
4561 Answers
204 Consultations

4.5 on 5.0

In case if you have delayed making payments not beyond 30 days time frame, then the builder can charge you interest on such delayed payments at a specified interest rate specified in the sale agreement.
Likewise if he has delayed in completing the project beyond the stipulated period (Inclusive of the grace period) then he is liable to pay compensation, in your case the mutual agreement is Rs.10/- per sq ft., per month, till the actual date of handing over possession.
Your options would be
a) Issue a legal notice seeking delay compensation, give him 07-15 days time period to make the payments,
b) on the lapse of 7-15 days, file the consumer complaint against the builder seeking this amount, plus your litigation costs and compensation,
c) make the payment under protest or you will be denied the registration and possession after all these years, take possession of the flat and initiate this legal process.
Kiran N. Murthy
Advocate, Bangalore
1019 Answers
91 Consultations

5.0 on 5.0

If the contract prescribes disqualification, after 30 days of default in payment, to compensation for delayed delivery of possession, you are within the sweep of contractual disqualification. Even a single day's delay cannot as a matter of right be claimed to be condoned. 
Ashish Davessar
Advocate, Jaipur
23161 Answers
641 Consultations

5.0 on 5.0

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