I booked a flat with ABC Infrastructures Ltd. in November 2013... I have paid in total of Rs.55 Lakhs which is about 60% of the total flat value. However, my circumstances have changed and I cant afford to pay any further installments and I was wanting to cancel the booking and post deduction of the specified (15% of flat value) to request for my money back. I was informed by one of my friend (working in the company) that the company has taken an order from the court on grounds of its financial position from restraining to pay any cancellation amount to the buyers (Who apply for cancellation) so as to ensure that the construction work doesnt stop and whosoever applies for the cancellation shall be paid their money plus interest charges @ bank rates once the project is handed over to the customers. I have all my doubts that this is true because this is totally in breach of my contract with the builder and infact of all the people who would have signed the same contract. I want to understand from you is that even feasible, can the court on grounds of financial crisis or for that matter any ground allow a builder to dishonor the buyer's agreement. If yes, then what are my options? I am in desperate need of my funds. Please advise The property is based in Gurgaon, Haryana.
Ask a question and receive multiple answers in one hour.
Lawyers are available now to answer your questions.
1) you can cancel the booking of your flat and seek refund of money paid by you
2) the builder is bound to refund your money after deduction of cancellation charges as per your contract
3) the court would not pass blanket stay order restraining buyers from getting refund in case of cancellation of booking
4) ask your friend to furnish copy of order passed by court for blanket stay of refund
Thank you for your quick response. Can I please further ask how do you suggest I should go about proceeding with the cancellation process? Would you suggest hiring a legal counsel? And what is the expected time frame for getting the refund back from the builder?
1) you should consult a local lawyer
2) the terms of agreement needs to be perused to advise best course of action
3) let lawyer draft your letter forc cancellation of the agreement
4) seek refund within period of 15 days of receipt of cancellation notice
5) if builder financial position is not sound you won't get refund without filing complaint before consumer forum
6) if consumer forum or court directs builder to refund then only will he give you your refund
A. What about the terms and conditions of the Agreement towards the cancellation of the flat?
B. The builder cannot be obtain an order in favour of himself without issuing notice to opponent party. Don't worry you are entitled to recover your money without any legal disturbance.
C. Issue a legal notice to the builder to refund the amount by mentioning cancellation of flat.
D. You may approach Consumer Forum or Civil Court to get back your money.
A. As I said earlier, you can issue a legal notice to the builder to refund the amount by mentioning cancellation of flat's notification.
B. You can select any advocate who is expert in the Real Estate field or Property Law.
C. Nobody cofirm the exact time towared the money refund. It is totally depends upon Builder financial capacity and Court modus operandi.
1. To cancel the contract there has to be fault of the other party, failing which there cannot be unilateral cancellation. It is not clear from your query as to whether the builder has committed breach of contract or not. That you are short of funds to pay the remaining cost is no ground to cancel the allotment and claim refund in entirety. Refund would be in terms of what is stated in cancellation clause with respect to cancellation charges. However, the builder cannot refuse to refund the paid amount minus the cancellation charges. Issue a lawyer's notice for cancellation to claim the refund of money, and if he does not heed it then take out appropriate proceedings before the competent court.
2. Court order, if any, has to be perused threadbare. Immediately engage a lawyer.
Dear Sir/Madam, you have to issued a legal notice to cancellation of flat and claiming a refund amount which you have paid to the builder and it will all depend upon terms and conditions of the sale agreement/MOU and construction agreement, if not respond and not paid the builder, you have to approach consumer court for the same. It will take own time and its depend upon lawyers and court procedures.
I want to understand from you is that even feasible, can the court on grounds of financial crisis or for that matter any ground allow a builder to dishonor the buyer's agreement. If yes, then what are my options? I am in desperate need of my funds. Please advise
It cannot be interpreted without seeing the court order contents or any opinion can be given until you confirm the information to be reliable after you having seen the order in black and white.
There are chances that the builder can obtain such an order using his influence in the judiciary using some backdoor techniques, however, it cannot be said that such things cannot come into force.
This may not appear in the sale agreement but owing to lot of cancellation of bookings and the builder ultimately facing financial crisis due to such cancellations may have approached the court to protect his interests and the progress of the project.
May be your friend has not given you correct information in this regard.
Did you inform the builder about your intention to cancel the booking in writing?, if not then do it immediately to be doubly confirmed about this situation.
Can I please further ask how do you suggest I should go about proceeding with the cancellation process? Would you suggest hiring a legal counsel? And what is the expected time frame for getting the refund back from the builder?
First you should inform your decision to cancel the booking and seek refund of the advance amount after deduction of the statutory deductions. This decision should be conveyed in writing and create a record of it. If there is no proper response or the builder is not complying with the demand made within the stipulated time, then you may plan to initiate the recovery process including claim for compensation for mental harassment through consumer forum.