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2008 Supreme(SC) 1029

R.V.RAVEENDRAN, LOKESHWAR SINGH PANTA
Faqir Chand Gulati – Appellant
Versus
Uppal Agencies Pvt. Ltd. – Respondent


Judgement Key Points

Key Points: - The court held that a development/development collaboration agreement is not a true joint venture if there is no shared control or profits/losses (and the agreement explicitly excludes partnership) (!) . - If there is a deficiency in construction or services under a development agreement, the land-owner may file a consumer dispute against the builder as service-provider; such hybrid joint-venture agreements can be within the Act’s scope (!) (!) (!) . - The complaint against deficiencies in service, including completion certificates and C&D forms, can be maintainable under the Consumer Protection Act, and the builder has duties to secure sanctioned plans, comply with statutes, and furnish necessary certificates; failure may lead to liability (!) (!) (!) . - The National Commission’s view that hybrid development agreements fall outside the Act was reversed; the District Forum should decide on merits in light of the consumer-protection framework (!) (!) (!) . - If the builder’s deviations prevent issuance of completion certificates, the builder must rectify deviations and obtain certificates; merely applying for certificates is not sufficient (!) (!) (!) . - The judgment clarifies that nomenclature (e.g., "joint venture" vs. "collaboration") does not determinative the nature; substance of control and liability governs (!) .

What is... How to determine whether a development/development collaboration agreement constitutes a joint venture or a mere service arrangement?

What is... What is the maintainability of a Consumer Protection Act complaint where a land-owner enters into a collaboration/development agreement with a builder?

What is... What are the rights of a land-owner to seek completion certificates and C&D forms and remedies for deviations in a collaborative housing development?


Judgment

R.V. Raveendran, J. —

This appeal is against the Order dated 3.2.2004 passed by the National Consumer Disputes Redressal Commission (‘Commission’ for short) in Revision Petition No. 1878 of 2000. It relates to the question whether a land owner, who enters into an agreement with a builder, for construction of an Apartment Building and for sharing of the constructed area, is a `consumer’ entitled to maintain a complaint against the builder as a service-provider under the Consumer Protection Act, 1986.

The agreement

2.The appellant is the owner of premises no. L-3, Kailash Colony, New Delhi. He entered into a ‘collaboration agreement’ dated 17.5.1991 with the first respondent, the terms of which are, in brief, as follows :

(i)The owner shall place at the disposal of the builder, vacant possession of the premises and authorize the builder to secure necessary sanctions, permissions and approvals for demolition of the existing building and construction and completion of a new building.

(iii)The builder shall demolish the existing structure and construct a residential building consisting of ground, first and second floors, at its cost and expense.

(iv)The builder will have the right to





















































































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