I am purchasing a property in Pune and have just received a draft Agreement of Sale from the builder. I see that there is a disparity between the clauses that talks about the penalty due to payment default and work completion default. The 2 clauses are stated below:
- Without prejudice to the right of the promoters to take action for breach arising out of delay in payment of the installments on the due dates, the flat purchaser shall be bound and liable to pay interest at 24% per annum compounded monthly on all the amounts which become due and payable by the flat purchaser to the promoters till the date of actual payment, provided that tender of the principal amounts and interest or tender of the interest and expenses thereof shall not itself be considered as waiver of the right of the promoters under this agreement nor shall it be construed as condonation of the delay by the promoters.
- The promoters shall give possession of the flat to the flat purchaser within 18 months from the date hereof, and the promoters agrees to execute the final conveyance thereafter. If the promoters fail or neglect to hand over possession for the reason beyond their control by the aforesaid date, then the promoters shall be liable on demand to refund to the flat purchaser the amounts already received by the promoters in respect of the said flat with simple interest at 9% per annum from the date the promoters received the said sum till the date the amount and interest are repaid. Till the entire amount and interest thereon is refunded by the promoters to the flat purchaser, they shall subject to the prior encumbrances if any, be a charge on the said flat.
As you can see, there is a discripancy between the rate of interests in the two clauses above. Is it acceptable and justified and normal. I am a new flat purchaser and not from the legal field. Please help.
