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Bhavani Singh (others)     17 December 2020

Builder obligation to give on-time possession in leased unit

I bought a property from a builder in Chandigarh in Nov 2018. In the agreement, the builder agreed to give possession of the property by Dec 2018, or else he would be liable to pay a penalty. Immediately after, I signed a lease agreement with the same builder in which the builder agreed to take the property on lease from me and pay me a fixed rent for 3 years. Now 3 years will expire next year and the builder has done no work on the property, nor has he given me a letter of possession as agreed to in the agreement. He claims that since I've leased out the property to him; he has no obligation to give me possession till the period of a lease via 3 years. Instead, he is asking me to pay more money and upgrade to a bigger property on a different floor in the same project as my original property is unlikely to be completed.

My question is -  Can I hold the builder accountable for the delay in giving possession, as agreed to in the contract, even though I'd leased out the property to the builder?
There is one line in the lease agreement that says "lessee may alter the layout of the property according to future requirements"

Can this line be used to claim that the builder is not obliged to give me possession till such time as they lease the property to him?
 



Learning

 3 Replies

Pradipta Nath (Advocate)     17 December 2020

1. You cannot hold the builder accountable as you leased the property under a valid agreement.

2. The line over the agreement finds no connection with possession.

P. Venu (Advocate)     24 December 2020

Have you received the rent as per the terms of the agreement? 

Dr J C Vashista (Advocate)     25 December 2020

Term of 3 years of Lease agreement starts only after completion of construction and not till the flat is not in habitable position.

Move to competent / jurisdictional consumer commission for deficiency of service / RERA and / or Civil Court for possession, damages, mesne profits etc.  

It would be advisable to consult and engage a local prudent lawyer for appreciation of facts/ documents, professional guidance and necessary proceeding.

 


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