How can we deal for this situations?
sri
(Querist) 10 February 2011
This query is : Resolved
Thanks to the experts, for giving the support by way of suggesting the few things related to case laws question asked earlier by me.
Whether it is correct or not to ask, please I would like to know few of things, related to construction/purchase of flat, I got this doubt while reading the papers and seeing the advertisements:
‘X’ has paid advance to ‘Builder/Construction company’ for purchasing a Flat(ready to occupy) in Tower/Apartment, if he pays advance, what percentage is required; What are possibilities in the following cases?
1. If he doesn’t enter into an agreement with the construction/builder company, what are problems, if any, has to be borne by the
a. Purchaser – if the company sells it to other person etc.,
b. Builder – (not selling the flat to others etc.)
2. If the purchaser cancelled/transferred his flat, Whether required to give/take any correspondence from the both sides, what are problems, if any, has to be borne by the
a. Purchaser – if any correspondence is not there, can he claim that he is also owner (partly, as amount paid), can the company deny him by not refunding the amount to him which he has paid earlier.
b. Builder - if any correspondence is not there, in future, can the purchaser demand for the flat, because there is no correspondence? Is it required any proof of cancellation?
3. If builder/construction company refunds the amount, if cancelled, without any correspondence, can purchaser claim that he is the owner.
4. If builder/construction company doesn’t refund the amount, what is the proceedings can be taken by the purchaser/consumer?
Please provide the details, of the above mentioned, with relevant Sections, Acts, Rules, Procedures/Proceedings, under Criminal/Civil Law, Consumer Law, IPC, any other law in India etc., for both of them (consumer as well as builder/construction co.) individually, as stated above.
How the consumer’s interest is protected under different laws? Are there any areas where consumer is not protected by the law, though consumer protection Act is there? case laws also from all acts or laws which mentioned above.
Thanking you,
Yours sincerely,
Student
M V Gupta
(Expert) 11 February 2011
Q1.Advance paid, if in nature of earnest money, is liable to be forfeited by the builder.
Q2.Cancellation of deal by the purchaser will result in forfeituer of the earnest money and refund of the balance amount without interest. If The agrewement provides for damages, then the same also will be payable. Buyer does not acquire any ownership rights under an agreement for sale. But if the agreement provides for assignment of the right to purcahse under it the buyer can assign that right to third parties for consideration. The purcahser should preserve all receipts for payments to safeguard his rights under the agreement.
Q3. No ownership can be claimed under a cancelled agreement.
Q4. Any cancellation of agreement should be in accordance with the terms of the contract and there should not any default or breach of contract on the part of the builder. otherwise he would be liabale to pay damages to the purchaser. If the builder does not refund the sums paid to him, the purchaser can file a complaint in the consumer forum not only for refund of the sums but also for damages. This is faster remedy when compared to filing a suit in the civil Court.
