Fine to be levied on the builder when he is unable to deliver the possession of house/flat on time: Supreme Court

Judiciary Jan 15, 2021 ADITI AGGARWAL ( Editor: Ekta Joshi ) 8 Shares

In a recent verdict, the apex court has held that that the flat buyers are entitled to compensation for “delayed handing over of possession” and for the failure of the developer to fulfill their promises with regard to amenities. The bench said the flat owners are entitled to the compensation in excess of the amount stipulated in their agreements with the developers.

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A bench of Justice Uday Umesh Lalit & Justice Indu Malhotra made it clear in its judgment that:

“The unilateral agreement & arbitrariness of the builder will no longer work because when the home buyer is not able to pay installments or arrears, the builder imposes a fine on him that he is obliged to pay, so why no fine on the builder when he is unable to deliver the possession of house/flat on time?”

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The top court set aside the verdict of the National Consumer Disputes Redressal Commission (NCDRC) which, on July 2, 2019, had dismissed the complaints of 339 flat buyers by holding that they were not entitled to the compensation in excess of what was stipulated in their flat purchase agreements for delayed possession and the lack of assured amenities.

The bench thus held that the flat owners are entitled to the compensation in excess of the amount stipulated in their agreements with the developers.

“The compensation amount shall be computed on the total money paid towards the purchase of the respective flats with effect from the date of expiry of thirty-six months from the execution of the respective flat purchase agreements until the date of the offer of possession after the receipt of the occupation certificate,” it said.

Supreme Court Urges Center to Create Additional Courts for cases pertaining to Sec. 138 NI Act 1881

Judiciary Mar 08, 2021 Aditi Aggarwal ( Editor: Ekta Joshi ) 12 Shares

A Constitution Bench headed by the Chief Justice of India SA Bobde of the apex court on Thursday( March 4, 2021) urged the Central Government to consider the establishment of additional courts to deal with the “grotesque” problem of pendency of cheque dishonour cases under Section 138 of the Negotiable Instruments Act, 1881. It has been told by the bench comprising the CJI, Justices L Nageswara Rao, BR Gavai, AS Bopanna and S Ravindra Bhat to the Solicitor General Tushar...

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SC Issues Directions on Installation of CCTV Cameras in Police Stations, calls it “Utmost Important”

Judiciary Mar 08, 2021 Tanya Sehrawat ( Editor: Ekta Joshi ) 4 Shares

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