Late Possesion by Builder

[rajivka]

I bought a flat from L & T Infocity. As per the sale agreement possession was due on 15th Nov 2006 and they were supposed to pay the penalty for late possession @ Rs 3 per sq.ft per month delay beyond 15th Jan 2007.

I got possession sometime in end of March 2007. I asked them for late possession penalty several time, but they always say they are looking into the matter. Even I visited personally but they always say that they have to give penalty to all the flats. There will be meeting and we will decide in that.

In April 2010 I sold this flat. Then I thought of seriously following up on this issue. I exchanged few mails with them. But then they start blaming me that I am raising this issue after three years. In the mail they said they are willing to sort the issue if I visit them personally.

But I don't understand why they want me to visit personally. They have all records. If they need anything I can even send the scanned copy of the documents. If I have to visit do I need to carry some documents. I think they are not willing to sort this issue but just harass me. Even if I visit there they will tell me one thing or other or may ask me to come some other day.

I can go to their office in case I have hope that they will sort the issue. I don't want to go there to listen their excuses. For me there is significant cost of going when I compare with the penalty due from them (both money and time).

I never expected such things things from such reputed group like L & T. Any suggestions regarding this?

Should I approach consumer court in this case?

 

[Alchemist]

Should I approach consumer court in this case?

That would be the best option, provided you have all the documents needed to prove your case.

By going to the consumer court, you will not only save time, you will also be able to claim all the incidental expenses that you have incurred in trying to recover the penalty amount from the builder.

 

[ramkasi]

Can the consumer demand for interest on this type of late payment of penalty?

 

[rajivka]

That would be the best option, provided you have all the documents needed to prove your case.

By going to the consumer court, you will not only save time, you will also be able to claim all the incidental expenses that you have incurred in trying to recover the penalty amount from the builder.

I have required proofs that builder agreed to pay penalty for delayed possession.

But in first 3 years I demanded this compensation only verbally. So there is no proof that I asked for penalty. I am not sure if this has been time barred.

Do you know if there is any time limit to file case in consumer court or demand penalty from the builder?

 

[Alchemist]

Do you know if there is any time limit to file case in consumer court or demand penalty from the builder?

Unfortunately, according to the NCDRC's (National Consumer Disputes Redressal Commission) site, there is a limit of 2 years.

Consumer Complaint, where value of the goods or services and compensation exceeds Rupees One Crore, can be filed with the Registry of this Commission within a period of Two Years from the date on which the cause of action has arisen.

http://ncdrc.nic.in/op.html

Does the agreement mention any time period (after possession is given) within which the penalty will be paid?

 

[rajivka]

Unfortunately, according to the NCDRC's (National Consumer Disputes Redressal Commission) site, there is a limit of 2 years.

http://ncdrc.nic.in/op.html

Does the agreement mention any time period (after possession is given) within which the penalty will be paid?

No, the agreement does not mention any time period in which the penalty will be paid.

The given link for applicable for case where value of goods or penalty is more than one crore. In my case penalty should be lower 5 digit and my purchase price for flat was around 25 lakhs.

I guess this time limit should be applicable in cases where penalty is less than 1 crore also.

In case I can't approach consumer court for being time barred, are there any other alternative. Should I give this in some newspaper?

 

[Alchemist]

I guess this time limit should be applicable in cases where penalty is less than 1 crore also.

In case I can't approach consumer court for being time barred, are there any other alternative. Should I give this in some newspaper?

Even of smaller claims, the time limit is 2 years.

24A. Limitation period. - (l) The District Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen.

(2) Notwithstanding anything contained in sub-section (1), a complaint may be entertained after the period specified in sub-section (l), if the complainant satisfies the District Forum, the State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint within such period:

Provided that no such complaint shall be entertained unless the National Commission, the State Commission or the District Forum, as the case may be, records its reasons for condoning such delay.

http://ncdrc.nic.in/1_1.html

Firstly, you will need some proof that you has asked for the penalty.

Send them a letter and ask for the penalty amount.

Also, mention that you have already called up their office numerous times and still have not been paid the amount.

Send the letter by registered post (not courier).

Send a copy of all relevant documents.

At the end of the letter, mention that you will take "further action" against the company if they do not pay the penalty amount.

If the company still doesn't reply within next 4 weeks or so, then you can try something else.

I am not a legal expert. I am only giving my opinion.