Swagato Mitra
Asked March 15, 2017

Refund of money: Legal process

  • 1 Answer
  • 272 Views

Hi. I have a contract with a builder dated July 2014 for an apartment where he would offer possession in 42 months. It has now been 33 months and less than 10% of the work has been completed. The payment plan is construction linked, so I have paid about 30% of the cost till now. As the builder will not be able to complete the work in 42 months and as there is no construction activity on the site at all at the moment, can I cancel the agreement at this point and ask for a full refund? There is a specific clause in the agreement: The vendor will complete the project within stipulated period of 42 months except influenced by force measures. However, if the vendor fails to perform its obligation under the agreement, he shall give due notice to the vendee and tender a refund of the amount collected.

Answer 1

Hi,

In the present case the essence of the contract is time which is 42 months mentioned on contract and since 33 months are elapsed. Therefore, I would suggest you to file the case after 42 months for the breach of the contract under section 73 of the Indian Contract Act,1872 for not completing the contract in time and claim full refund under order 37 of Civil procedure Code, 1908 and the compensation. Secondly file the case for the deficiency of the service under section 12 of Consumer Protection Act, 1986 as the builder is not able to provide the building in time would be covered under section 2 of the CPA which explains the deficiency of service.

 

Regards,

Jayant Garg 

Agree Comment 0 Agrees over 3 years ago

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