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Interest penalty on delayed payment of installment
23-Jun-2023 (In Property Law)
Facts: (a) Agreement for sale registered (b) All amounts towards installments already paid i.e. 99% of total amount (c) Last installment of 1% is at the time of Possession away 9 months from now as per agreement.
Builder charging interest penalty at 28% p.a. for delay in payment of installment. Reasons for delay is on account of escalation of legal disputes on property between builder and counterparts, and bank withdrew tie-up arrangement for the project. Though same bank later sanctioned after 2 months after legal scrutiny.
Query: (a) Can builder cancel agreement and forfeit amount paid on grounds of non-payment of interest penalty if not paid (b) Can he charge interest on interest (c) Is he prudent to file case with RERA as and when he registers his project right now or wait till the time of possession.
The dispute lies between builder and counter parts and the bank as said by you in your question .That you have rendered all payments on your behalf to the builder and abided by the terms of contract therefore you have line of action which can be initiated against the builder i.e. either you go ahead and file specific performance for the contract if within the limitation ambit or else you can also go ahead and seek recovery for your amount along with damages and interest on the principal amount therefore you can also initiate criminal action against the builder so choice ultimately belongs to you please contract for further details'...
Helpful?
16+
16+
Adv. Nishant Solanki
Delhi | 200+ Answers
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Dear querist,
Strictly relying upon the given facts in the light of law My suggestions are as follows:
1. Builder cannot cancel the agreement and forfeit the entire amount paid.
2. Interest on interest cannot be charged.
3. You can file the complaint with the RERA.
But, Kindly issue a notice mentioning your grievances and legal prepositions.
Note: please send the agreement for sale for further suggestions with crystal clear.
Strictly relying upon the given facts in the light of law My suggestions are as follows:
1. Builder cannot cancel the agreement and forfeit the entire amount paid.
2. Interest on interest cannot be charged.
3. You can file the complaint with the RERA.
But, Kindly issue a notice mentioning your grievances and legal prepositions.
Note: please send the agreement for sale for further suggestions with crystal clear.
Helpful?
11+
11+
Adv. PS Sridhar Raj
Delhi | 25+ Answers
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