Laws laid down by supreme court



(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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