How can I get refund for cancellation of the flat
16-Jun-2023 (In Property Law)
Dear Sirs, I had bought an apartment in 2003 in Kochi, from a Bangalore based bulder. Since the flat was not handed over till date. 7-8 months back i met with a sivere accident in UAE and was bed ridden and lost my job. After long follow up with the builder, i agreed them to give back my home and requested for refund. Of the 33 Lac, i paid then, they have returned only 14 lac and that too after lot of follow up. 3 cheques with 16 lac outstanding is overdue and feel like the company is fooling around. They know my despirate condition of my debts too. Lots of debts to settle , pls advise action
The question is not clear. From what I understand from the query, If you have the cheques issued by the company, you can present the same and if its getting dishonoured, can file a case in Criminal court. Other option is to file a case for specific performance demanding to hand over the flat.
Here in fact there is breach of contract between you and the builder. However it is happen due to the accident which you met in UAE. If you have relevant evidence to prove that you are completely bedridden due to the accident approach the court and file a suit to get back the advance money which you paid to the builder.
Delay in delivery of possession in a building is one of the most commonly faced and frustrating problems for a property buyer.
What remedies are available in case the builder delays the construction of the building?
1. You can ask for a refund. If the builder delays the completion of the construction beyond the stipulated time, you are entitled as a property buyer to seek a refund from the builder. Demand compensation from builders for construction delays
2. If you are buying the property for personal use, you can file a case in the consumer dispute redressal commission at all the three levels i.e the district , the state and the national commission depending on the value of the property or the amount of damage you have suffered. Any dispute over 20 lakhs can be directly filed before the State Commission and any dispute over 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than 20 lakhs has to be filed in the District Commission in your District.
3. There are special provisions in some states for the benefit of consumers. For example, if you are in Maharashtra, you can get remedy through Section 8 of the Maharashtra Ownership Flat Act 1963, which makes the builder liable to refund the money obtained from a consumer with interest if he is unable to justify non-completion or delaying possession of his project. This section clearly works to safeguard the interest of the consumer and it is the duty of the builders to complete the construction on time.
4. There are some additional provisions which you should be aware of. For example, the Domestic Building Contracts Act 1995 states that the builder has given the following warranties (a) That all the work would be completed on time (b) That all work will be carried out in accordance with the plans and specifications set out in the contract (c) That all material to be supplied by the builder will be of a high quality (d) That the work will be done in a legal manner with reasonable care and skill, and
5. when the work is completed, the home will be fit for occupation. As per this law, you are entitled to take action for delays. e. Please remember that before you take any action, it is always advisable to send a legal notice to the opposite side giving them a chance to respond. Once a legal notice is sent, the builder may take action to solve the problem, and you can save the needless time and expense involved in going to court.
What remedies are available in case the builder delays the construction of the building?
1. You can ask for a refund. If the builder delays the completion of the construction beyond the stipulated time, you are entitled as a property buyer to seek a refund from the builder. Demand compensation from builders for construction delays
2. If you are buying the property for personal use, you can file a case in the consumer dispute redressal commission at all the three levels i.e the district , the state and the national commission depending on the value of the property or the amount of damage you have suffered. Any dispute over 20 lakhs can be directly filed before the State Commission and any dispute over 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than 20 lakhs has to be filed in the District Commission in your District.
3. There are special provisions in some states for the benefit of consumers. For example, if you are in Maharashtra, you can get remedy through Section 8 of the Maharashtra Ownership Flat Act 1963, which makes the builder liable to refund the money obtained from a consumer with interest if he is unable to justify non-completion or delaying possession of his project. This section clearly works to safeguard the interest of the consumer and it is the duty of the builders to complete the construction on time.
4. There are some additional provisions which you should be aware of. For example, the Domestic Building Contracts Act 1995 states that the builder has given the following warranties (a) That all the work would be completed on time (b) That all work will be carried out in accordance with the plans and specifications set out in the contract (c) That all material to be supplied by the builder will be of a high quality (d) That the work will be done in a legal manner with reasonable care and skill, and
5. when the work is completed, the home will be fit for occupation. As per this law, you are entitled to take action for delays. e. Please remember that before you take any action, it is always advisable to send a legal notice to the opposite side giving them a chance to respond. Once a legal notice is sent, the builder may take action to solve the problem, and you can save the needless time and expense involved in going to court.
What are the terms of the agreement as to refund, especially in the difficult phase you are passing through? Any way, it is a good thing that we have partly reunded the amount; this could be helpful in asserting their liability to refund. what do you mean by "3 cheques with 16 lac outstanding is overdue and feel like the company is fooling around."? If it is that they have already issued the cheque but which could be enforced, you can proceed against the builder under Section 138 of the Negotiable Instrument Act. You also the have the option of appraching a consumer forum or a Civil Court.
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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