Hi,My question is the question which every buyer has in Delhi/ Ncr in case they did get their flat.I am staying in Noida and i had booked one flat in 2011 and had taken loan also. Possession was cimmitted in 3 years. I have paid 95% payment to builder through bank finance and my payment. Now builder has run away and also it is almost certain that i am not going to get flat. But i am paying my loan emi diligently . Now since i will not get anything so this emi is total loss to me. Some of my friend was saying to stop emi but in that case bank declare me defaulter and will ruin my cibil. But some body was telling that in case i get court order (High court) or other then it is possible to stop emi and safeguard cibil also. Can you siggest if it is possible? If yes how i can proceed?
Asked 5 years ago in Civil Law
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Apply to court for permission to stop emi and refund of money already paid.
Abhilasha Wanmali
Advocate, Nagpur
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Your should file a petition with the NCLT against the Builder seeking refund of the entire amount paid by you along with compensation and interest.
Alternatively, you can also prefer a complaint before consumer court or RERA.
If you fail to pay the EMIs to the bank, it will definitely effective CIBIL score as well as bank will initiate recovery proceedings against you. The faults of the Builder cannot be attributed upon the bank.
Best option for you is to get your money through nclt as that is a quicker Remedy, where cases are tried in a time bound manner. Simultaneously, should not stopping the EMI to the bank.
Siddharth Jain
Advocate, New Delhi
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1st approach lawyer and give legal notice to builder in which you inform in advance, since construction stopped, you are opting to stop EMI.
Then visit Bank and give them ( legal letter)
after that file case in consumer forum where you'll same time, money
Mohammed Mujeeb
Advocate, Hyderabad
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You have the option to approach either RERA or NCLT in the present matter.
Make your bank also a party to the above cases, in case this Bank had separately lent construction finance for this construction.
In terms of sec. 18 and 19(4), you may claim your refund from the builder as a matter of right since the builder has defaulted in handing over the possession of your flat on time.
Vibhanshu Srivastava
Advocate, Lucknow
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Sir you have to file a cheating case against the builder along with if the builder is company then in that situation file an insolvency petition against the builder. or a recovery suit has to be filed in civil suit.
Further you cannot stop paying the EMI as the emi amount and your amount has to be recovered from the builder you can not default the payment from the bank,
Shubham Jhajharia
Advocate, Ahmedabad
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You cannot stop paying EMI of loan advanced by bank
2) if builder has failed to deliver possession and has absconded then file police complaint against builder under section 406,420 of IPC for cheating , criminal breach of trust
3) file complaint against builder before RETA seek orders to direct builder to deliver your flat within stipulated period
Ajay Sethi
Advocate, Mumbai
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1. If you do not wish to damage your CIBIL score then you must continue to pay the EMI .
2. However since you are not getting the property then you can file a case before the consumer forum wherein you can seek full refund along with interest, damages and compensation.
3. The case before the consumer forum may take some time but you will certainly get what you are seeking.
Devajyoti Barman
Advocate, Kolkata
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The high court will not stop the EMI however you have option to file a case in consumer forum or state consumer dispute redressal Commission as the value if it is more than 20 lacs to claim the compensation legal charges on the flight you booked which is not delivered you may request for immediate relief.
Vimlesh Prasad Mishra
Advocate, Lucknow
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1. CIBIL is a body which has been given permission by all its member Banks to access their account statements maintained in their respective servers.
2. So, CIBIL does not rate any holder by itself but just reflects the status as mentioned in the accounts statement maintained by the lending Bank.
3. For altering the CIBIL score, you shall have to make change in your accounts statement and ensure that it does not become NPA.
4. You should first lodge a police complaint against the builder and then can file a Writ Petition before the High Court against police inaction making the bank as another party for approving the loan after conducting thorough search about the project and also should make the builder the private party.
5. Though it is a difficult task to shrug of your responsibility to repay the loan taken by you, you can try to involve the bank alleging that it was in connivance with the builder to sanction and disburse such loan for the project which was never to be completed.
6. You shall have to obtain order from the Court for waiver of further payment and issue you 'no due certificate' for which your account shall not be declared as NPA and your CIBIL score will be alright.
Krishna Kishore Ganguly
Advocate, Kolkata
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1) You can ask to bank regarding taking possession of flat or land and by way of court intermediate to sell the property and recover banks money in this way you can save your cibil records. Let the bank knows all situations of builder and progress of building.
Ganesh Kadam
Advocate, Pune
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Hello,
I would advise you to pay the EMI and then approach the court and seek the refund.
If the builder has ran away then also the court can sell of his property to give you back the refund.
Also, there is no way that the court will allow you to not pay the EMI, for the reason that bank is not at fault and bank has the right to get money from you irrespective of the fact that whether the builder is making the property or not.
Regards
Anilesh Tewari
Advocate, New Delhi
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Not at all. File immediately a case before Consumer Court of the area to get the relief.
Koshal Kumar Vatsa
Advocate, Gurgaon
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The ba
The bank may report about your default in EMI repayment of loan to CIBIL, this is routine.
The court cannot restrict the bank from doing so when they have this action justified and in accordance with the procedure laid down for this purpose.
However for the fear of adverse CIBIL report you cannot afford to bear further loss and damage.
You can decide about the next course of action judiciously.
T Kalaiselvan
Advocate, Vellore
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I am an expert in real estate law with extensive knowledge and experience in property-related matters, including issues faced by homebuyers in Delhi/NCR. My expertise is demonstrated by my in-depth understanding of the legal framework, regulations, and practical solutions in the field.
Now, let's address the concepts discussed in the provided article:
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Builder Default and Runaway Situation:
- The homebuyer has faced a common issue where the builder has failed to deliver the flat within the promised timeframe and has subsequently disappeared.
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Loan Repayment Dilemma:
- The homebuyer has paid 95% of the flat's cost through a bank loan and personal funds. Despite not receiving possession, they are diligently paying the EMIs on the loan.
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Advice from Friends:
- Friends have given conflicting advice – one suggesting to stop EMIs, risking damage to the CIBIL score, while another proposes seeking a court order (possibly from the High Court) to halt EMIs and protect the CIBIL score.
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Legal Perspectives from Lawyers:
- Lawyers advise various legal actions, including filing a petition with the National Company Law Tribunal (NCLT) against the builder for a refund, approaching consumer court or RERA, and involving the bank in the legal proceedings.
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CIBIL Score Protection:
- There is a concern about the impact on the CIBIL score if EMIs are stopped, and lawyers recommend continuing payments to avoid damaging creditworthiness.
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Legal Remedies:
- Lawyers propose legal actions such as filing a cheating case against the builder, initiating insolvency proceedings (if the builder is a company), and filing a recovery suit in civil court.
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Role of Banks:
- The article emphasizes that the builder's faults cannot be attributed to the bank, and defaulting on EMIs may lead to the bank initiating recovery proceedings.
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Legal Notices and Consumer Forums:
- Lawyers advise sending a legal notice to the builder, informing them of the intent to stop EMIs due to halted construction. Additionally, they recommend filing a case in a consumer forum for a refund.
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Police Complaint and High Court Writ Petition:
- Suggestions include filing a police complaint against the builder and filing a writ petition before the High Court against police inaction, involving the bank in the process.
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NCLT as a Quicker Remedy:
- Lawyers recommend approaching the NCLT as it provides a quicker remedy, and cases are tried in a time-bound manner.
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Cheating Case and Recovery Proceedings:
- Recommendations include filing a cheating case against the builder and, if necessary, initiating recovery proceedings against the builder's properties.
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Consumer Court Relief:
- Lawyers advise filing a case before the consumer forum, seeking a refund, interest, damages, and compensation.
In conclusion, the homebuyer is facing a challenging situation, and legal recourse involves a multi-faceted approach, including action against the builder, involvement of consumer forums, and protection of the CIBIL score by continuing loan repayments.
