Is grace period penalized?

This query is : Resolved 

17 February 2017

Dear Sirs,

My apartment construction contract says 3 years plus grace period of 6 months. The developer did not notify me when he got in to grace period and exceeded that too, still not completed. They are taking it granted that grace period is theirs, then why not simply state 3.5 years. My query is;

1. Should not the builder request for usage of grace period and with sufficient reason?

2. And having exceeded grace period even, is it not that developer has to pay penalty to me for grace period too.

Kindly advise on above.

Kumar Doab (Expert)
17 February 2017

For variance from T&C : Relate with agreement that you have signed.

Rajendra K Goyal (Expert)
17 February 2017

Full agreement to sale / builder buyer agreement need to be referred for any opinion.

Naveen (Querist)
17 February 2017

In contract, there is no other clause that goes in favor or against penalising grace period. So question is in general Context. Question is how grace period is different from man construction period? I am requesting advise in general context only. I have taken a stand that if builder completed within grace period, no penalty. But since they exceeded grace period, penalty is applicable for grace period even. Kindly advise if I am right or wrong.

Ms.Usha Kapoor (Expert)
19 February 2017

Agree with experts.

Naveen (Querist)
19 February 2017

Thank you all. But still wondering why grace period is not looked at as buyers control area.

I am wondering what is the relevance of contract in the discussion. I felt this will be an easily answered question. Every developer puts a grace period. My query is whether grace period just added to main construction period? The builder simply takes it as his right. Then exceeds and pays for only the exceeded time. Is not this wrong? Logical approach is that if he finishes within grace period, he does not have to pay penalty. And If he exceeds grace, he has to pay for grace period also. This approach sounds legally correct as that would force the developer to not use grace period much. Kindly advise.

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