Civil Procedure Code (CPC)

Escalation

This query is : Resolved 
 

(Querist)
31 October 2012

Hi Experts,
If Builder wants to demand extra payment incurred by him with respect to construction of flat due to increase in material costs can he do the same and any judgements which will safeguards him, since the builder has not mentioned the escalation clause in the Sale Agreement.


Devajyoti BarmanOnline (Expert)
31 October 2012

If the consideration of property is already agreed in the sale agreement with no option for further modification of price then surely the Developer can not unilaterally increase the price for any reason whatever .

If developer does not listen then go to the consumer forum.

ajay sethiOnline (Expert)
31 October 2012

he cant ask for increase if there is no escalation clause in the contract .

Naveen Kumar (Querist)
31 October 2012

Thank U Mr.Barman & Sethi,

The fact is that i am asking this query on behalf builder, since i am manager. The building is at finishing stage. We are suppose to handover the possession by Nov 30/12. We hav already intimated all our customers with regarding delay in possession. The problem is that due to some labour, material cost, transportation etc., involved in construction the total budget of our company is beyond it's budget. More over in Sale Agreement also they have not mentioned about escalation. So can you focus on this.
Thanks in Advance

Devajyoti BarmanOnline (Expert)
31 October 2012

As I stated earlier without any clause for modification of price especially increase on rice rise, you have no legal right to increase the cost.
If you do and the buyers go to Consumer Forum, you would be asked to compensate them which would be more costlier for you.

Naveen Kumar (Querist)
31 October 2012

Thank You Very much for your opinion sir.



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