Good News, well done! Today, builder can not impose its clauses on home buyers, Supreme Court rules
The Supreme Court held that contract terms will not be definitive and binding until it is shown that flat buyers have no choice but to sign on the dotted line. Homebuyers who purchase flats or builders ‘ apartments have very little choice but to accept the developers ‘ standard sales agreement.
It is quite likely that specific provisions involving interest rate, right to terminate the agreement, the time limit for refund due to cancellation, etc. may not be equal, i.e. developers may have superior rights compared to buyers ‘ rights. Yes, many of those events already have to come to light.
There’s good news for homebuyers though. While delivering its judgment on 2 April 2019 in the case of Pioneer Urban Land & Infrastructure Ltd Vs Govindan Raghavan, the Supreme Court held that the terms of a contract would not be final and binding if it was shown that the buyers of the flat had no choice but to sign on the dotted line, on a contract proposed by the owner.
It further held that the inclusion of one-sided clauses into an agreement constitutes an unfair trade practice pursuant to Section 2(r) of the Consumer Protection Act, 1986 since it adopts unfair methods or procedures for the builder’s selling of the flats.
