Legal Question in Consumer Law in India

Our Co Op Housing society has got done civil repair work of its building including terrace water proofing work from a contractor at a cost of Rs. 4,00,000/- which was started by him on 21/05/2012 and completed on 18/08/2012. The guarantee period is 02 monsoons. During current monsoon of 2013, there was leakage from the terrace. We have sent 04 letters to the said contractor from 27/06/2013. But he did not turn up for repair. What action we can take against the said contractor? A security deposit of Rs. 20,000/- has been withheld by the society till date.

Regards


Asked on 9/30/13, 6:52 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

01.09.2013

Dear Sir / Madam,

Usually, the retention percentage is 10% of the total contract value. So if the total contract value was of Rs. 4,00,000/- the Retention Money from the Contractor ought to have been Rs. 40,000/-. Anyway, the Society should approach the Consumer Forum and the Registrar, for redressal of its grievances. If the Contractor has failed to honour his commitment, the Society should issue the Contractor a letter of his Security Deposit having been forfeited by the Society on account of the Society incurring amounts to carry out the repairs itself, within the guarantee period.

Regards,

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Answered on 10/01/13, 2:47 am


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