WHEN A MONEY DEMAND BY
THE BUILDER IS INVALID
(Not depositing money is not violation of terms and conditions )
A consumer often meets with a situation
wherein builder issues demand letter as per the agreed terms . He also expects
interest in case consumer fails to deposit the money as per agreed payment shedule . Reminder letters are also
issued to the custmor /purchaser with
fresh demand amount which includes interest also . There is a warning also
referring to agreement clause by which builder reserves the right to cancel the
booking and forfeit the booking amount too.
On the other hand there is all possibility of
delay in construction and builder had offered a very low /minimum peneality for
his default .Since purchaser does not have equal bargaining power with the
builder,hence he signs the agreement.
Consumer is in a fix-builder is
unapproachable to listen that construction is not upto the mark and he does not
want to pay as per agreed shedule time.If he defaults and wait for his
correspondence to reach to some logical resolution,the interest accrues to
leaps and bounds and ultimately consumer has to either pay every thing or
stands on the verge of risk of getting booking cancelled .
Here is a case decided by hon’ble National
Commission where in has been clarified that money demand made by the builder
can be termed as invalid demand if construction has not started .
In a case of Vinod Kumar Kochar v/s Earh
Infrastructure Ltd &others ,one Shri Vinod Kumar Kochara nnd his wife Karuna
Kochar were allotted a residential unit no. 103,Vayu tower,group housing complex known as Earth Towne at plot no
GH-04,Sector-1 ,Greater Noida UP vide allotment letter dated 17.6.2011.The cost
of apartment was fixed at Rs 3392550/-and after other charges added up to the
tune of Rs 533625/- the total cost of apartment comes to Rs 3926175/-.Complainant
paid Rs 10,83,945/- towards part payment .
OP never sent any demand letter for the
balance amount ,neither there was any work done except for digging work done on
the site . Builder cancelled the allotment and forfeited the earnest money
alleging non payment of money as
scheduled.
It stands admitted by the builder that no
work was done in respect of the project in question .Complainant could also
establish that he never received any demand letter even . National commission
held-
‘although the complainants were bound to pay
the amount as per time shedule,yet they must be made aware and demand notice
was to be sent informing them the status of construction. When OP’s have not
started work how could they send demand letter. Consequently the cancellation
of flat made by OP’s is illegal and invalid. OP must prove that inspite of work
done and demand notice sent, complainant has failed to pay.They are entitled to
cancel allotment only after that Court
went ahead directing OP’s to give interst on the amount already paid to the
tune of Rs 1083945/- with 9% interest from the judgment month ie Jan 2015 till possession is given.
It stands a landmark order in favour of
consumers when builder threats to the customers for cancellation of unit and
forces him to go on making payment inspite of the fact no work done .
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