Compensation for delayed refunds
Querist :
Anonymous
(Querist) 17 September 2010
This query is : Resolved
Hi, I booked a flat with one of the reputed builders in Chennai by paying an advance of Rs 5 lacs. Since the builder did not start the project for want of required approval, I demanded refund of my money. ( approvals not obtained either at the time of taking my advance or even at the time of refund ). After prolonged correspondence I got back my principal after 10 months. Since I did not get any interest for my money blocked with the builder for 10 months, I served a legal notice, which was rebutted by the company. All these things happened 19 months back. Can I initiate a civil suit for recovery of in interest on the grounds of mis-selling and is this action barred by limitation?
Amita Chaudhary
(Expert) 17 September 2010
you can file a suit for recovery of interest and the limitation period is 3 years from the date the money is due... and the cause of action in your favour arose when the builder refused/failed to discharge his obligation under the contract and whereupon you have asked him for your money...all the best... feel free to revert
Legal Eagle
(Expert) 17 September 2010
Yes you can initiate proceedings. Prior to that please check whether you had checked the papers and they were clear, do you have any correspondence to prove that the builder has done mischief by not informing you about the permission not received. On what basis did you give an advance amount??
pawan sharma
(Expert) 17 September 2010
i do agree with Mr.Amit and kashmira.
Chanchal Nag Chowdhury
(Expert) 17 September 2010
Yes. U may initiate proceedings,but, before that, U have to serve upon him a notice demanding Interest under the Interest Act.
Also U r entitled to interest from the date of payment to the date of refund & not beyond.
Sri Vijayan.A
(Expert) 19 September 2010
Pl check the Force Majure clause and termination clause of the of the agreement
2.When the agreement was executed, you know the fact that the project was not approved by the authority.
3.What is the obligation of the builder, if the project could not be initiated due to the failure in the approval.
4.Sometimes, you may have to lose some amount, if the agreement was prepared in that sense.
Madhava Law Office
(Expert) 21 September 2010
Your recovery procedding will depend upon your agreement with Builder and the disclosure made by the Builder to you. In such cases, generally offer document clearly mentions that the project will be started after obtaining the requisite approvals from concerned authority. Please check, whether such disclusire is made to you or not and in case no such approval is received then what remedies are provided under the offer document/agreement.
