Hello I purchased a property in Noida in December 2017 worth 67Lakhs aprox. Initially I paid the builder by 2 cheque amounting 5 Lakhs and 10 Lakhs and got a receiving of it by the builder.Then I deposited same receipts and other documents in the bank and got a loan of Rs 50 Lakhs. The cheque which I issued were never deposited by the builder to his account. In 2020 I recieved a letter from the builder that my due amount is 22 lakhs and I'll be charged 18% penal interest pa. Now when I have given the cheque to the builder and I have a receipt of the same. Why I'm liable to pay the intrest on the due amount. Isn't it's builders fault that he didn't deposit it? Please guide me according to the law who is at fault and what could be done. Thanks Regards
It is builder responsibility to deposit cheque
if he fails to do so you are not liable to pay interest
inform the builder that you are not liable to pay interest as he failed to deposit cheque
if builder insists on claiming interest file complaint against builder before RERA or consumer forum and seek orders to direct builder to waive interest and deliver possession of flat
You are absolutely right. When builder chose not to encash duly issued cheques it his default. He cannot take advantage of his default. You are not liable to pay any interest. Issue him banker’s cheque for due amount with covering letter referring to cheques issued by you stating that you are not liable to pay any interest.
On the receipt it's mentioned 'Receipt valid after realisation of the draft/cheque' . Am I still not liable to pay the penal interest? Because from my end I paid the cheque but it's builders fault that he didn't deposit it. And now he is asking for penal interest for the pament not made since he didn't deposit the cheque.
You are not liable to pay interest as builder failed to deposit cheque
If you have receipts for the payments made by you to the builder, you can issue a reply notice denying the demand made by him. You may even engage the services of an advocate to issue a proper reply to his demand notice.
It's his fault for not presenting the cheque for payment when the cheque was issued.
Alternately you can issue another cheque replacing the stale cheque now.
You don't have to pay penal interest for no fault on your side.
It's not your fault but the builder's fault. You should send him a legal notice sttaing the same along with proof. If he still persists in his version of the story then file a complaint against him in the district consumer forum on grounds of unfair trade practices and deficiency in services.
It's his fault that he didn't deposit the cheque.
Yes it's illegal to claim interest by builder on his fault. He can't claim the same. You can file case in consumer court against him if he continues such illegal practice
- If you have taken home loan on the said property , then the bank sanctioned the loan amount in your name but as per law it will issued to the seller i.e. builder.
- Further being the seller , the builder not encashed the cheque then legally you are not liable for the same
- Further for the faults of builder you cannot be punished , and the said builder is himself accountable for the same.
- If builder insists , then you can lodge a compliant against him.
Dear sir,
You're not liable to pay the interest, as it is the builder's fault to deposit cheque. You can send him a notice by attaching the receipts of those cheques.
Thank you
You earlier asked profile funding question that you were cheated by multiple builders.
so this builder is from that group ?
You are not liable to pay any interest for cheques delay.
Your problem of interest will be solved by legal notice.
But for entire problem solution, approach local lawyer.
