I invested 19 lakhs in a government housing society layout in Bangalore in 2015, based on a colleague's recommendation. The layout was supposed to be approved and ready, but it has been delayed for years. The Society is now saying the layout is not approved and they will refund the money. almost 10 years !! I've only received 5 lakhs so far despite multiple followups.Now Society asking to chase developer directly whereas I never dealt with him till date. My questions: Can I demand interest on the delayed payment? Do I have a strong case if I take this to court? Additional information: I have a receipt for the payment. The AGS office has a record of my investment. I don't have a signed contract or any other documentation. I seriously want interest on money for past 9 years, but getting principal amount is priority. Please let me know if you need any further clarification.
Dear Sir, My answers are as follows: Can I demand interest on the delayed payment? Ans: Yes, you can demand interest for the last 10 years. Do I have a strong case if I take this to court? Ans: You have a strong case but if you go to court you have to wait for another 3 to 4 years. Prefer to get principal amount and close the issue.
Dear Client, As per your query, you can recover damages for non-performance and interest in the delayed refund under Section 73 of the Indian Contract Act, 1872. Further, you can file a suit to recover from the society under Order XXXVII of the CPC, 1908, or further litigate the case through the Consumer Disputes Redressal Forum under the Consumer Protection Act, 2019, for both refund and compensation for deficiency in service. The liability would remain with the society and cannot be passed on to the developer. One should act with haste if he does not want to be caught off by limitation issues, as the time period for recovery claims usually runs for three years from the cause of action. Hope this answers your query.
