I have purchased one of the eight apartments built by a builder-developer of the city on a plot of 1,000 sq yd. I had entered into an agreement and had paid nearly 70 per cent of the sale consideration at that time. The balance amount was to be paid in three equal installments on a bi-monthly basis with the last installment coinciding with the delivery of the finished apartment, in October 1998. Whereas, I have made 90 per cent payment as per the agreed plan, I did not make the final payment until January 1999 when the possession of the apartment was handed over to me. Even though as per the agreement the builder was required to provide individual electric connections from the state electricity board, he did not do so. However, the apartments were sub-metered and connected to the temporary power supply that the builder had arranged from the state electricity board for construction purposes. Such consumption is billed at the same rate as is applicable to industrial consumers, which is approximately 50 per centhigher than the board rate.Furthermore, the builder has been collecting these payments in cash at a flat rate of Rs 5 per unit. With average bill of Rs 5,000 per flat per month (on a consumption of 1,000 units per month) the amount collected up to March 2000 is approximately Rs 6 lakh. When we approached the local office of the electricity board to inquire about the status of our permanent electrical connections, we were told that though our individual requests have already been processed and cleared, the physical connection cannot be given till the payment arrears aggregating to nearly Rs 10 lakh are cleared by the builder-developer. They further informed us if the dues are not cleared within the next fortnight they will be constrained to disconnect electricity to the building altogether. We now seek your expert advise as how to proceed further.
-Niku Bhai Chotu Bhai Desai, Mumbai
It was and still is the builder's responsibility to clear all the dues in respect of the temporary electrical connections secured by him to facilitate site construction activity. It is also understandable that until the dues have been cleared, the electric supply company will not energise your individual electric meters. Under such circumstances, you should firstly try and persuade the builder to settle these bills. However, if he does not oblige, then the flat owners have no choice, but to pool in resources and clear the dues.
As far as your individual payments made to the builder are concerned, you can ask the electric supply company to issue you duplicate month-wise bills for electricity consumed and payments effected to arrive at the pre-occupation consumption of electricity by the builder. Armed with this information, you could sue the builder for recovery of the amount due from him on this account (including delayed payment surcharge levied by the electric supply company). Though it is doubtful, whether you would be able to legally recover these payments, since you do not have any signed receipts acknowledging these payments. However, in case you have some concrete proof enabling you to prove these payments, then you may proceed to file a suit for recovery on this account along with damages and interest.
Moreover, prior to clearing the payments in arrears of the electric supply company you could also come to an understanding with it to file a recovery suit against the builder for breach of contract. Meanwhile, the payment effected by the flat owners could be held as an unaccounted advance which would be adjusted against outstanding dues or refunded only after outcome of the recovery suit is known. While, this course of action would leave the liability for recovery of bills in arrears squarely with the electric supply company, it would also enable the flat owners to get individual meters without having to alienate the builder.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
