Skip to main content

Legal remedies available to a home buyer in case builder delays in delivering the possession

 1. Approach Consumer Forum- This is the most common forum to bring an action against the builder for deficiency in services under the agreement between the homebuyer and the builder. The homebuyer is covered under the definition of “consumer” as defined in Consumer Protection Act, 1986 only if the house is purchased for his own use and not for any commercial purpose. Deficiency in services includes a delay in possession. This is a cost-effective manner as the court fee charges are very nominal.


There is a three-tier machinery for redressal of consumer grievances under the Act. The District Commission is the initial forum and has jurisdiction to entertain complaints where the value of the house and the compensation if any, claimed does not exceed Rs. 1 Crore. Where the value of the house and the compensation if any claimed exceeds Rs. 1 Crore  but does not exceed Rs 10 Crore, the complaints will be entertained by State Consumer Commission which is established in each state. If the value of the house and the compensation if any claimed exceeds Rs 10 Crore, the National Commission Disputes Redressal Commission will have the jurisdiction to entertain such complaints.


You can file a consumer complaint either where the registered/ branch office of the builder is located or where the flat you purchased from the builder is situated.


2. File a case before Regulatory Forum- You can also file a complaint with Real Estate Regulatory Authority under section 31 of the Real Estate (Regulation and Development) Act, 2016. This authority is specifically constituted for speedy and effective adjudication of buyer- builder disputes. Under RERA if the builder fails to give possession as per the terms of the agreement for sale, then the buyer if he wishes to withdraw from the project, he can withdraw and is entitled to receive the amount paid so far and along with the interest.


Consult: Top Property Lawyers in India


If the homebuyer wishes to continue with the project, he is entitled to receive interest for every month of delay.

 

3. File a Civil Suit- If the builder fails to deliver the property on the date as stipulated in the agreement then you can file a civil suit as there is a breach of obligations as per the agreement. You can approach a civil court and file a suit for injunction/damages or claim refund of the amount paid to purchase the flat and interest thereof. If you approach the civil court, you can get an immediate order for an injunction under Order 39 Rule 1 and Rule 2 of Code of Civil Procedure. However, there is no stringent timeline for adjudication of the suit and hence it may take longer as compared to other alternatives. In case, you are not a consumer, for instance, if you have bought flats for reselling purposes then you are not covered within the ambit of “consumer” and hence you can opt for filing a civil suit.


4. Initiate out of Court settlement- You can also opt for arbitration if there is an “Arbitration clause” in the builder- buyer agreement. Usually, it takes 3-6 months for resolving a matter through arbitration. There is no trial under this alternative and no evidence is considered while passing the award. In a recent judgment, NCDRC has held that even when there is an “arbitration clause” in the builder- buyer agreement. 


5. File a Criminal complaint- If your builder has cheated or defrauded you then you can file a criminal complaint under the provisions of Indian Penal Code for cheating, etc. A bailable warrant can be issued against the builder if you opt to file a criminal complaint.


Connect with an expert lawyer for your legal issue


Note: While claiming the compensation you can claim interest on the payment made till date. If the homebuyer is staying in a rented accommodation, then the money spent on rent till the possession is delayed. Also, he can claim loss of opportunity caused to the purchaser, had he invested his money elsewhere.

 


Should you hire a lawyer?

It is highly recommended that an aggrieved buyer hires a lawyer for any action against the builder. This is because a property lawyer would be able to assess what is the best remedy that you should seek, the best legal recourse that should be taken, etc. A lawyer can better draft your complaints/suits and would also be able to represent you better than you would be able to represent yourself. This is because he is experienced and has studied and has been taught how to draft and represent clients. In addition to this, a property lawyer knows the requisite laws, and can interpret judgements and research more effectively. Hiring a lawyer is thus a good practice which would only work in your favour. 

Labels:

Comments

Post a Comment

Popular posts from this blog

Section 58B of The Advocates Act - Special provision relating to certain disciplinary proceedings

 Section 58B The Advocates Act Description (1) As from the 1st day of September, 1963, every proceeding in respect of any disciplinary matter in relation to an existing advocate of a High Court shall, save as provided in the first proviso to sub-section (2), be disposed of by the State Bar Council in relation to that High Court, as if the existing advocate had been enrolled as an advocate on its roll. (2) If immediately before the said date, there is any proceeding in respect of any disciplinary matter in relation to an existing advocate pending before any High Court under the Indian Bar Councils Act, 1926 (38 of 1926), such proceeding shall stand transferred to the State Bar Council in relation to that High Court, as if it were a proceeding pending before the corresponding Bar Council under clause (c) of sub-section (1) of section 56: Provided that where in respect of any such proceeding the High Court has received the finding of a Tribunal constituted under section 11 of the Indian B
Post a Comment
Read more

Case Laws related to Defamation in favour of ClaimantCase Laws related to Defamation in favour of Claimant. TOLLEY Vs, J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement. Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be asked to resign from his respective club. Furthermore, there was evidence that the possible adverse effects of the caricature on the claimant’s reputation were brought to the defendants’ attention. The trial judge found that the caricature could have a defamatory meaning. The jury then found in favor of the claimant. Held The House of Lords held that in the circumstances of this case – as explained by the facts – the caricature was capable of constituting defamation. In other words, the publication could have the meaning alleged by the claimant. The Lords also ordered a new trial limited to the assessment of damages. NEWSTEAD V LANDON EXPRESS NEWSPAPER LTD, (1939) Facts: A newspaper published a defamatory article about Harold Newstead. However, another person with this name brought an action in libel. He claimed that the article had been misunderstood as leading to him. The defendant newspaper recognised that they published the article. Also, they denied that they had the intention of being defamatory of him. Consequently, the claimant argued that the newspaper was under a duty. The duty was to give a clear and complete description of the correct person. Moreover, the claimant argued that the defendants were in breach of the duty. Issues: The issue in Newstead v London Express Newspaper, was if the reasonable persons would have understood the words complained of to refer to the plaintiff. Held: The Court of Appeal stated that in accordance with the current law on libel, liability for libel does not depend on the intention of the defamer; but on the fact of the defamation. Accordingly, a reasonable man, in this case a newspaper publisher, must be aware of the possibility of individuals with the same name and must assume that the words published will be read by a reasonable man with reasonable care.

  Case Laws related to Defamation in favour of Claimant.  TOLLEY  Vs,  J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement.   Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be aske
1 comment
Read more

Rules as to delivery of goods

                             Rules as to delivery of goods Section 2(2) of Sale of Goods Act defines ‘delivery’ as a ‘voluntary transfer of possession from one person to another.’ Thus, if the transfer of goods is not voluntary and is taken by theft, by fraud, or by force, then there is no ‘delivery. Moreover, the ‘delivery’ should have the effect of putting the goods in possession of the buyer. The essence of the delivery is a voluntary transfer of possession of goods from one person to another. There is no delivery of goods where they are obtained at pistol point or theft. 1. Mode of Delivery: According to Section 33, delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorized to hold them on his behalf. Delivery of goods may be actual, symbolic or constructive. 2. Expenses of Delivery: According to Section 36(5), unless otherwise agree
Post a Comment
Read more