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RamK2013 (manager)     08 January 2014

Builder failing to complete

Hi
we have a land in prime location and entered an agreement with a construction company to build with 50-50 share. Initial agreement was to complete in 2 years but the builder failed to complete. The builder asked for another 9 months extension and we helped him. The builder is not finished even after 9 months, so far only half the construction is finished and don't think he will complete in less than 2years minimum. At this moment, the builder is not responding to us. Could you please advise
1) what kind of actions can be taken against the builder
2) generally how long this kind of court battles takes when agreement is very clear
3) what other issues we should worry about at this stage

thanks in advance.



Learning

 6 Replies

Dr J C Vashista (Advocate)     08 January 2014

1) Issue notice to builder, follow it with filing of consumer complaint and/or suit for specific performance 

2) It is difficult to tell the answer to the query that "generally how long this kind of court battles takes when agreement is very clear" since it involves number of factors which yur cousnel can explain.
3) It depends upon circumstances of the case regarding the other issues you should worry about at this stage which cannot be predicted, assumed or guessed.
 

SACHIN AGARWAL (ADVOCATE)     08 January 2014

The matter would be governed by the terms and conditions of your agreement. Engage some lawyer and take advice.

RamK2013 (manager)     09 January 2014

Thanks for your advice.

Rutumbhara Nayak (lawyer)     09 January 2014

The construction company has breached the contract. Breach of Contract occurs where a party to a contract fails to perform, precisely and exactly, his obligations under the contract. This can take various forms for example, the failure to supply goods or perform a service as agreed. Section 73 of the Indian Contract Act, 1872 lays down the basic guidelines for identifying the losses. Section 73 of the Indian Contract Act, 1872 lays down the basic guidelines for identifying the losses compensation for loss or damage caused by breach of contract: When a contract has been broken, the party who suffers by such breach is entitled to receive, form the party who has broken the contract, compensation for any loss of damage caused to him thereby, which naturally arose in the usual course of things from such breach or which, the parties knew when they made the contract to be likely to result from the breach of it.

But it is better if you file a suit for Specific Performance. In certain cases of breach of a contract, damages may not be an adequate remedy. Then the court may direct the party in breach to carry out his promise according to the terms of the contract. This is an order of the court requiring performance of a positive contractual obligation. Specific Performance is only granted if the innocent party has a specific interest in performance which is not satisfied by damages. There is no specific answer to the question how long this kind of court battles takes when agreement is very clear.Get an expert to guide you through the entire process you can call me at 09555 507 507 or send me a mail at info@lawkonect.com

SKapoor_Lawkonect (Lawyer)     09 January 2014

Hi RamK2013, in the light of facts and circumstances of your case it can be said that you should firstly send a legal notice to the construction company with whom you have entered into an agreement this will pave way for further legal actions against the other party. Moreover, if your agreement has any clause which says that after a particular period of delay the contract will be void at your discretion then you may benefit from such a clause and terminate the contract if the conditions are not fulfilled. With regard to your second query i.e., about the time this legal battle may take the answer is that there is no such fixed time for such cases and the time taken may depend upon the facts and the terms of your agreement. Lastly about your last query i.e., the issues that you shall be worried as of now I can say that the only legal option you have at your hand presently is sending a legal notice to the other party. If you have any other legal query and questions you may send me a personal message as a copy of the agreement is a must to inform you about any further action in the situation.

Regards,

SKapoor,

Lawkonect,

9555507507.

 

T. Kalaiselvan, Advocate (Advocate)     12 January 2014

Advocate Vashista has given valuable piece of advice on the subject, may be followed.


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