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2009 Supreme(SC) 1415

2009(6) Supreme 97
SUPREME COURT OF INDIA
S.B. Sinha and Deepak Verma, JJ.
Madan Kumar Singh (D) Thr. LR. — Appellant
versus
Distt. Magistrate, Sultanpur & Ors. —Respondents
Civil Appeal No. 5165 of 2009
[Arising out of S.L.P.(C) No.20515 of 2005]
Decided on : 07-08-2009

Advocates Appeared:
For the Appellant :R.K. Kapoor, Ms. Gunjan Sinha, H. Pant, Anis Ahmed Khan, Advocates.
For the Respondents:R.K. Gupta, Manoj Dwivedi, Gunnam Venkateswara Rao, Advocates.

IMPORTANT POINT
Where appellant bought truck for a consideration which was paid by him, exclusively for the purpose of earning his livelihood by means of self-employment, then appellant would fall in the category of a ‘consumer’ with in the meaning of Section 2(1)(d) of Consumer Protection Act.

Headnote:Consumer Protection Act,1986 – Sections 12,2(1)(d) – Consumer – Appellant purchased a truck in an auction purchase – Despite deposit of price of truck it was delivered to appellant after about six months from the date of auction sale, for which no plausible reasons were assigned by the Respondents – Apart from that respondents did not deliver necessary documents of the truck to the appellant so as to enable him to get the vehicle transferred in his name, for six long years – Complaint – Dismissed by District Forum – Appeal – Dismissed by State Commission-Revision petition thereagainst-Partly allowed by National Commission awarding 25,000 as compensation – Special leave petitions thereagainst – Plain reading of Section 2(1)(d) of Act showed that appellant would fall in the category of a ‘consumer’ as he had bought the truck for a consideration which was paid by him since it was bought to be used exclusively for the purpose of earning his livelihood by means of self-employment. (Paras 23 to 26)

        Consumer Protection Act,1986 – Sections 12,2(1)(g) – Deficiency in service – Appellant purchased a truck in an auction purchase – Despite deposit of initial money and balance consideration truck was delivered to appellant after about six months from the date of auction sale, for which no plausible reasons were assigned by the Respondents – Apart from that respondents did not deliver necessary documents of the truck to the appellant so as to enable him to get the vehicle transferred in his name, for six long years – Complaint alleging Deficiency in service – Held appellant having been declared as highest bidder had deposited the initial money and next day deposited the balance of the consideration – The truck in question was actually handed over to him almost after six months from the date of auction in his favour – Despite best efforts made by appellant, relevant papers of truck were handed over to him only after six years from the date of the auction – No plausible or convincing reasons had been assigned by respondents for not doing so – Hence respondents were at fault in performance of the services which was otherwise required to be performed by them – What more could be the deficiency in service cannot be described – Respondents were certainly imperfect and the same amounted to shortcoming in quality in providing service to appellant – Appellant suffered loss of earning firstly due to non-delivery of vehicle and then due to highly belated supply of requisite documents – Moreover, value of the truck also depreciated resulting in further loss to him – Amount awarded by National Commission being too meager enhanced to Rs. 1,00,000/-. (Paras 28 to 38)

       Facts of the Case :

        Appellant herein in the instant case purchased a truck in an auction purchase. Despite deposit of initial money and balance consideration truck was delivered to appellant after about six months from the date of auction sale, for which no plausible reasons were assigned by the Respondents. Apart from that respondents did not deliver necessary documents of the truck to the appellant so as to enable him to get the vehicle transferred in his name, for six long years. A Complaint alleging Deficiency in service was filed.

       Findings of the Court :

        Appellant having been declared as highest bidder had deposited the initial money and next day deposited the balance of the consideration. The truck in question was actually handed over to him almost after six months from the date of auction in his favour. Despite best efforts made by appellant, relevant papers of truck were handed over to him only after six years from the date of the auction. No plausible or convincing reasons had been assigned by respondents for not doing so. Hence respondents were at fault in performance of the services which was otherwise required to be performed by them. What more could be the deficiency in service cannot be described. Respondents were certainly imperfect and the same amounted to shortcoming in quality in providing service to appellant. Appellant suffered loss of earning firstly due to non-delivery of vehicle and then due to highly belated supply of requisite documents. Moreover, value of the truck also depreciated resulting in further loss to him. Amount awarded by National Commission being too meager was enhanced to Rs. 1,00,000/-

       Result : Ordered accordingly.

       

JUDGMENT

Deepak Verma, J.

1. Leave granted.

2. For the sake of convenience, facts have been taken from the appeal arising out of S.L.P.(C)No.20515 of 2005.

3. Appellant was an auction purchaser of a truck bearing registration No. UP I-4775, put to an auction sale, on account of default in payment of instalments committed by its previous owner Iqbal, having taken loan from Union Bank of India under “Self Employment Scheme”. Recovery Certificate was issued to the Collector, Sultanpur (U.P.) by the said bank. The auction was held in the Tehsil Compound, Sultanpur, on 19.8.1999. The appellant’s bid for a sum of Rs. 70,000/- being the highest, was knocked down in his favour and accepted by respondent No. 1.

4. As per the terms and conditions of the auction, appellant deposited a sum of Rs. 20,000/-, as soon as the bid was knocked down in his favour. Since no objection was received against the said auction sale, the appellant deposited balance amount of Rs. 50,000/- on 20.8.1999.

5. On 19.9.1999, the said auction was confirmed, since no objections were received much less, from the previous owner Iqbal. Thus, it was treated to be a final sale in favour of the appellant.

6. Obviously, after the sale having been confirmed in favour of the appellant, he was entitled to receive possession of the truck, which was not delivered to him by the respondents. Thus he made a representation on 30.11.1999 for delivery thereof. He continued to make several representations with the respondents for delivery of the truck purchased in the auction and also to hand over to him the documents so that the vehicle could be transferred in the name of the appellant so as to enable him to ply the same. It appears that truck was delivered to the appellant after about six months from the date of auction sale, for which no plausible reasons were assigned by the respondents.

7. Despite handing over possession of the truck at a belated stage, respondents did not deliver necessary documents of the truck to the appellant so as to enable him to get the vehicle transferred in his name, thereby depriving him of its commercial use, the purpose for which he had purchased.

8. He was therefore, constrained to file a petition under Section 12 of the Consumer Protection Act, 1986 (for brevity, ‘the Act’) claiming damages.

9. Appellant was ultimately delivered the possession of the truck on 14.3.2000, during the pendency of the complaint before the District Forum. The relevant papers thereof were not handed over to him for a long time but on persistent requests, the same were handed over to him some time in the month of January, 2005. Thus after a lapse of more than five years from the date, the auction was confirmed in favour of the appellant.

10. The District Consumer Forum dismissed the complaint of the appellant holding therein that appellant is not a “consumer” within the definition of the Act.

11. Feeling aggrieved, appellant filed an appeal before the State Consumer Disputes Redressal Commission, Uttar Pradesh, Lucknow which was registered as Appeal No. 2327 of 2000. The State Commission dismissed the appeal with certain observations reproduced herein below:

“The District Consumer Forum Sultanpur has dismissed the complaint on the finding that such matters are not cognizable by it under COPRA. No error at all can be found in the aforesaid finding. It is open to the appellant to file copy of this order before District Magistrate Sultanpur with such prayer relating to the documents of the vehicle as advised. The District Magistrate will deal with such representation in accordance with law and pass necessary orders within two months.”

12. Pursuant thereto, appellant submitted representation to the District Magistrate on 17.2.2003 and continued to remind them that they have to deliver the necessary documents to the appellant so as to enable him to get the vehicle transferred in his name, which would further enable him to use the same for commercial purposes.

13. Against the o

































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