Can a private builder demand interest on late payment
Raveeshu Kumar
(Querist) 01 May 2010
This query is : Resolved
Can a private builder demand interest on late payment? if the delivery of flat is itself delayed as verbally promised. Though the builder has not documented the delivery date in agreement.
A V Vishal
(Expert) 01 May 2010
Can a private builder demand interest on late payment?
Ans.Yes, if the agreement has the clause stipulating the interest receivable on the delayed payments.
if the delivery of flat is itself delayed as verbally promised. Though the builder has not documented the delivery date in agreement.
Ans. Although even if the delivery date is not stipulated it has to be a reasonable time. What is reasonable would depend upon the project itself. However, you have not mentioned the reasons for the delay.
Parthasarathi Loganathan
(Expert) 01 May 2010
All these two aspects is subject to documentation in the original contract between the Builder and the purchaser
Gulshan Tanwar
(Expert) 01 May 2010
show your contract paper, that can show the "real" thing.
Raveeshu Kumar
(Querist) 01 May 2010
Thanks. Now, I shall read the contract carefully. When I purchased the flat in Mar 2009 the building was almost complete, but not ready fot possession. The builder promised to handover the flat in July 2009. But offered possession only in Nov 2009, though the premises are not in a good shape till now.
Uma parameswaran
(Expert) 01 May 2010
What about the payment stipulated in the Agreement?His demand for interest will depends upon that.If work is still pending the builder have no right to ask for interest.
