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2013 Supreme(SC) 404

SUPREME COURT OF INDIA
G.S. SINGHVI, RANJANA PRAKASH DESAI & ARVIND BOBDE, JJ.
Virender Jain
Versus
Alaknanda Coop. Group Hng. Sty. Ltd. & Others
Civil Appeal No. 64 of 2010 with Civil Appeal Nos. 65-68 of 2010
Decided On : 23-04-2013

Advocates Avocates:
For the Appellant:S.B. Sanyal, Sr. Advocate, K.K. Mehrotra, Advocate.
For the Respondents:Neeraj Kumar Jain, Sr. Advocate, Pratham Kant, Aseem, Mehrotra, Abhijat P. Medh, Rauf Rahim, Ms. Devyani Ashra, Yadunandan Bansal, Advocates.

Headnote:

Consumer Protection Act, 1986 - Section 12 – Arguments - Damages to tune - But above mentioned payments have not yet been received from you by society inspire of reminders issued from time to time as indicated in our last office Letter - Further no communication representation has been received from you - Matter was brought to notice of managing Committee - Managing Committee in its meeting taken a very serious view of your non compliance and non response and resumed that you are not interested in housing project of Society – Held, Thus even though no formal contract had been entered into between Chandigarh Administration and Board on one hand and members of Societies on other hand former exercised sufficient degree of control over latter - By making applications for allotment of land Societies will be deemed to have hired or availed services of Chandigarh Administration and Board in relation to housing construction as elucidated and explained - Gupta case - Scheme had been faithfully implemented and land had been allotted to Societies their members would have been actual and real beneficiaries - Therefore they were certainly covered by definition of consumer Section second part of which includes any beneficiary of services hired or availed for consideration which has been paid or promised or partly paid and partly promised - As sequel to this it must be that members of Societies had every right to complain against illegal arbitrary and unjustified forfeiture of earnest money and non refund of interest and District Consumer Forum did not commit any jurisdictional error by entertaining complaints - Other question which needs to be considered is whether District Forum should not have entertained complaints filed by appellants and directed them to avail statutory remedies available Cooperative Societies vehemently argued that forums constituted Act cannot grant relief to appellants because taken by respondent was approved by authorities constituted Cooperative Societies Act who were not imp leaded as parties in complaints – Appeal allowed

Judgment :

The appellants were enrolled as members of respondent No.1-Alaknanda Cooperative Group Housing Society Limited. They applied for 'A' type flats, which were being constructed by respondent No. 1. They are said to have deposited the installments of price between 10.12.1995 and 15.12.2003. The details of the amounts deposited by the appellants are as under:

1. Virender Jain Rs.1,96,000/-

2. Sudesh Kumar Jain Rs.1,96,100/-

3. Pankaj Jain Rs.2,96,110/-

4. Nitin Jain Rs.1,96,100/-

5. Sudershan Kumar Jain Rs.2,96,100/-

By letters dated 9.2.2004, respondent No. 1 returned the amount deposited b the appellants and indirectly terminated their membership on the ground that they had failed to deposit the instalments of first and second stage of construction as also the instalment of the cost of land allotted by HUDA. For the sake of reference, the letter sent by respondent No.1 to appellant -Virender Jain is reproduced below:

"THE ALAKNANDA COOP. GROUP HOUSEING SOCIETY GURGAON

PLOT NO. GH-45, SECTOR-56,

GURGAON-122002

Ref no.7115 Regd. Date: 9.02.04

Mr. Virender Jain

Sub : Refund of payment due to persistent default

The following payments had been demanded by the Society from time to time

(a) 1st construction inst. due on 15.07.03 Rs.1,00,000/-

(b) 2nd construction inst due on 15.07.03 Rs.1,00,000/-

(c) Inst. of HUDA land cost due on 15.10.03 Rs.42,000/-

But, the above mentioned payments have not yet been received from you by the society inspite of reminders issued from time to time as indicated in our last office Letter no. 6878 -97 dt. 28.12.2003. Further, no communication/representation has been received from you.

The matter was brought to the notice of the managing Committee. The managing Committee, in its meeting held on 11.01.04 has taken a very serious view of your non-compliance and non-response and resumed that you are not interested in the housing project of the Society.

In view of the above, your contribution alongwith share money, as per details given below is sent herewith vide Ch.331971 dated 01.02.04 for Rs.1,82,350/-

(a) Share money 1,00/-

(b) Contribution 1,95,900/-

1,96,000/-

Less installment on dues of Rs.84,000 of HUDA Land cost installment @ 15 % p.a. from January' 03 to January' 04 (3months0 (-) 13,650.00 1,82,350/-"

The appellants challenged the aforesaid action of respondent No.1 by filing complaints under Section 12 of the Consumer Protection Act, 1986 (for short, 'the Act') and prayed that respondent No. 1 may be directed to restore their membership and issue necessary share certificates after receiving the balance cost. They further prayed for award of damages to the tune of Rs.50,000/- in each case.

On notice, respondent No.1 filed applications under Section 13 of the Act and challenged the jurisdiction of District Consumer Dispute Redressal Forum, Gurgaon (for short, 'the District Forum') to entertain the complaints. Respondent No. 1 claimed that the complaints were not maintainable because the appellants do not fall within the definition of 'consumer'. Respondent No.1 also pleaded that the Haryana Cooperative Societies Act, 1984 (hereinafter referred to as, 'the Cooperative Societies Act') is a special statute vis-a-vis the Act and the only remedy available to the appellants in the matter of termination of their membership and/or refund of the entire amount deposited by them was to file a petition under the Cooperative Societies Act.

By separate orders dated 16.6.2006, the District Forum overruled the objections raised by respondent No.1. The relevant portion of the order passed in the case of Virender Jain is extracted below:

"The remedy provided under the act is an additional remedy it is not in derogation to remedy provided under the other Acts. It is the choice of the complainant either to avail the remedy under the Consumer Protection Act or nay other applicable. In coming to our above conclusion we are guided by the AIR 2004 Supreme Court 448 "Secretary, Thirum























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