Dispute with builder.

Amit Kumar Kosta (Querist) 30 May 2014 This query is : Resolved
I have booked a flat and indenture recording an agreement was executed on 12/05/12. There are five blocks in the project. The construction of my block was started around November 2013. Now in my block the builder have completed half portion. The place where my flat stands the builder have completed foundation only. On approaching him for signature on Tripartite agreement the builder is asking for 50% payment of the cost of the flat.As per agreement I have paid 20% of the total amount at the time of execution of indenture recording an agreement. Now as per agreement I have to pay 10% of the balance amount on completion of foundation, but the builder is asking for 50% of the amount due. The bank has also sanctioned my loan and on talking to the bank the bank is not agree to do 50% payment. The builder is asking me to cancel the agreement which I do not want. He also refused to sign tripartite agreement with bank. He has not given anything in writing regarding the 50% payment.

Pl. advice what can I do in this case.

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ROHIT SHARMA (Expert) 30 May 2014
Dear Mr. Amit Kumar Kosta,

1. The terms and conditions mentioned in such indenture agreement are primarily to be observed by both the parties.

2. The bank too has disbursed the loan as per the stages of the construction work and will not disburse the 50 % that which such builder has demanded when called upon to sign a tripartite agreement with you and the bank and he himself. I do not see why the necessity arose to have such tripartite agreement to be drawn out.

3. As per the agreement you have already paid 20 % of the total amount at the time of signing such preliminary agreement.

4. Now that the foundation has been constructed you are required to disburse another 10 % and not more than that and the bank will disburse this 10 % amount only.

5. The builder must be saying ot orally that in case you do not disburse 50 % amount then he would cancel the agreement. This is a mere commercial advantage he wants to book to assert his showmanship. Do not be bogged down with such assertions.

6. You stick to the terms and conditions of the initial indenture agreement.

7. For him to cancel the agreement he would have to pin point any breach of condition of such initial indenture agreement which you have not done so. Let him do so because it would require him to approach the court and this he would be doing at his cost.

8. In the event if he fails to construct the flat well within the time frame as mentioned in the initial indenture agreement then you have many legal options to make such builder liable for the damages that occurs due to the breach of the specific conditions of such an agreement.

9. Since he has not given any thing in writing in context with the payment of 50 % amount, he is just trying to bully his way out and get cash to his own advantage.

10. Just relax and be tactful and get the builder realize that he too has to perform his part of the contract and he would not be able to escape this legality of a contact deed.

Sankaranarayanan (Expert) 30 May 2014
well explanation given by sri Rohit sharma So follow according ly

Amit Kumar Kosta (Querist) 30 May 2014
Thank you very much for your kind opinion. Thank you very much Sir.

Amit Kumar Kosta (Querist) 30 May 2014
Thank you very much for your kind opinion. Thank you very much Sir.

But one thing I want to tell you that the agreement was on Rs. 10/- non judicial stamp paper and it is not registered. I have notarized it only.Will this thing will work in builder's favour?

Dr J C Vashista (Expert) 31 May 2014
Mr. Rohit Sharma, an expert, has very well advised,I appreciate and agree.
The notarised agreement is valid for both the signitories, now it is your turn to act.

Amit Kumar Kosta (Querist) 31 May 2014
Now Sir, What should I do as the builder have refused to sign the tripartite agreement. Unless and until tripartite agreement is signed by all the three parties the bank will not disburse the payment to the builder. please advice.

prabhakar singh (Expert) 31 May 2014
Sue the builder in consumer forum after consulting a local lawyer.
It appears you did not read advice of Mr.Rohit Sharma or if you read,you could not assimilate his suggestions.

Amit Kumar Kosta (Querist) 31 May 2014
Thank you Sir,

malipeddi jaggarao (Expert) 31 May 2014
Mr.Rohit has clearly explained you the position. Regarding your further queries, you tell the builder that you have obtained housing loan and a tripartite agreement has to be signed in favour of the Bank and unless this is over, it is not possible for you to make any further payments. Send a regd.letter with ack.due fixing a date with banker for his signature. He will definitely come and sign the same as he requires funds.