Can the booking amount be forfeited
Prathamesh
(Querist) 03 November 2009
This query is : Resolved
Hello,
In September 2009 i did a apartment booking in Alibaug by paying a token amount of Rs. 51,000/- (by cheque). However later when the time came for getting the property registered the clauses in the agreement where not acceptable to us as the same where in favor of the builder/developer. Hence we decided to exit from the project and requested for the refund of 51000/-. However the developer says the token will not be refunded as the receipt for 51k has a clause about the same. Does the law permit the developer to forfeit the booking amount by just placing a clause in the receipt? Please could you advise what course of action can I take for getting the refund? Also do let me know if any additional information is required.
A V Vishal
(Expert) 03 November 2009
The refund of the booking amount is subject to the terms and conditions as per the agreement of sale entered with the builder, if there is a clause whereby it states that the builder has right to forfeit certain percent of the booking amount, then there is no legal recourse, however if there is no such clause, then issue a legal notice through a good lawyer. Strictly in technical & legal sense, booking amount can be forfeited but not an advance.
Prathamesh
(Querist) 04 November 2009
Hello,
Thank you very much for the response. Sure, any legal action if required will be after consulting a good lawyer. However just a small thing to clarify. In my case the agreement of sale has not yet being entered into. Actually we are not comfortable with the agreement and hence want to cancel the deal. When I paid the amount of 51k, a receipt for the same was later couriered to me which stated that the amount is non refundable. In such a case i believe a legal course of action is possible? Please correct me if wrong. Once again thanks a lot for your feedback.
