• Builder not paying rent for under development project

I am a land owner and gave my land for Joint Development for a builder, As per the development agreement the builder has to finish the project with in 46 months and 6 months additional grace period after getting all permissions from the concerned departments. Builder got those permissions in July 2016 and the stipulated time ended on or before Decemeber 2020. Builder did not even complete half of the project. I tried contacting him and he is not responding to any of my phone calls or messages. Should I file for specific performance suit and what are my chances for getting my rent as per the agreement.
Asked 3 years ago in Property Law
Religion: Hindu

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7 Answers

Remedy of specific performance of agreement  is not available here as the act of completing construction cannot be enforced. File a suit for declaration of termination of building against due inability of builder to complete the project. After that you can engage another builder or you can yourself complete the project. The builder is not entitled for any compensation against money expanded him to part construction but your are entitled for the loss suffered due failure of builder.


Remedy of specific performance of agreement  is not available here as the act of completing construction cannot be enforced. File a suit for declaration of termination of building against due inability of builder to complete the project. After that you can engage another builder or you can yourself complete the project. The builder is not entitled for any compensation against money expanded him to part construction but your are entitled for the loss suffered due failure of builder.

Ravi Shinde
Advocate, Hyderabad
4480 Answers
42 Consultations

Have you taken bank guarantee from builder ?

 

2) if so encash the bank guarantee for failure to complete project on time and terminate JDA 

 

3) if no bank guarantee taken issue legal notice to builder for failure to complete project on time 

 

4) you can terminate agreement with builder and claim damages 

Ajay Sethi
Advocate, Mumbai
97601 Answers
7901 Consultations

Dear Sir,

1. For rental amount, you may file a recovery suit in a civil court against the arrears and for future rent you can seek a mandatory injunction direction the builder to pay them regularly failing which necessary action to be initiated by due process of law for recovery.

2. You can send a legal notice to the builder which should mention the details and should also mention that he should start disbursing the rent, to which you are entitled to each month. As there is an agreement signed between you and the builder, he has to strictly act in accordance with the development agreement.

In case the builder is not paying the rental and isn’t responding to your legal notice, you can file a complaint in the consumer forum and ask the builder for the recovery arrears of rentals.

3. There are high chances that you shall receive the rent. This is a clear case of the builder exploiting you. Yes you may also file for a specific performance suit, asking the builder to start paying rent

Thank you

Anik Miu
Advocate, Bangalore
10420 Answers
121 Consultations

- Since you have entered into joint development agreement with the builder , then the said builder is bound to comply the clauses mentioned therein .

- If there is given that the 46 months period shall be run from the date of permission , then you cannot take any legal action against him , if no , then you can claim damages from him and can also cancel the agreement . 

- Issue a legal notice to seek damages and to cancel the agreement. 

Mohammed Shahzad
Advocate, Delhi
14773 Answers
225 Consultations

A complaint should be filed against the builder before the RERA tribunal immediately.

You can also file a consumer complaint against him for unfair trade practices and deficiency in services.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

File case before consumer forum where you would get full refund with interest and damage. 

Don't make mistake of filing civil suit under Specific Performance Act.

Devajyoti Barman
Advocate, Kolkata
23351 Answers
523 Consultations

You have options to approach RERA or consumer forum or a civil court with a suit for specific performance of contract provided you want this builder to continue with this project.

First of all send a legal notice to the builder about this and demand his reply/explanation within 7 days from the date of receipt of this notice.

His reply if unsatisfactory or not responding to your notice, you may decide about further legal process as per the prevailing circumstances.

 

T Kalaiselvan
Advocate, Vellore
87803 Answers
2365 Consultations

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