Date of calculating interest amount on delayed payment
04-Oct-2023 (In Property Law)
I had booked a flat in year 2012 in Chandigarh. The agreement entered for the same has the execution date of Feb 20, 2012. When me and my mother entered into the agreement with the builder on Feb 20, 2012, we had already made a payment of Rs. 11 lac. Today I received a letter of possession from the builder and asked me to pay the pending amount. When I checked the statement of account, the builder had mentioned an amount of Rs. 25000 as interest on late payment. My question is which date will be considered the start of the relationship, the execution date of the agreement or when we started communicating with the builder? When we entered into the agreement the payment of Rs. 11lac was already made and they have charged interest on those installments.
Your relationship commenced from the date of execution of agreement itself. The penalty over late payments in the form of interest starts only if installments are paid after due date mentioned in the demand letter or as per terms of the agreement (as per payment plan).
Whether interest on 11 Lac payment was charged or on subsequent installments is not clear from your query. But interest is levied only if there is delay beyond due date.
Whether interest on 11 Lac payment was charged or on subsequent installments is not clear from your query. But interest is levied only if there is delay beyond due date.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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