IMPORTANT POINT
The statutory Boards and Development Authorities which are allotting sites with the promise of development, are amenable to the jurisdiction of consumer forum in case of deficiency of services.

JUDGMENT

Pinaki Chandra Ghose, J.

1. The present appeal has been filed assailing the order dated April 13, 2005 passed by the National Consumer Disputes Redressal Commission (hereinafter referred to as “the National Commission”) in Revision Petition Nos. 534-537 of 2005, affirming the order dated November 10, 2004 passed by the State Consumer Disputes Redressal Commission, Chandigarh (hereinafter referred to as “the State Commission”), which further confirmed the order dated September 20, 2001 passed by the District Forum.

2. The facts of the case briefly are as follows :

a) By a notification dated November 16, 1971, the Haryana State Government under Section 7 of the Punjab Agricultural Produce Markets Act, 1961 (hereinafter referred to as ‘the said Act’), notified the area of New Grain Mandi, Adampur as Market Area. Subsequently, in the year 1974, the areas/limits were further extended by five kilometers. In 1980, the State Government notified a sub-market yard of New Grain Mandi, Adampur. The Colonization Department of the State by a letter dated January 24, 1986, transferred the said area to the Haryana State Agricultural Marketing Board, the appellant herein.

b) The respondents herein were allotted plots by the appellant, being plot Nos. 17, 7, 16 and 14 upon depositing the 25% of the price of the said plots. The method of payment and the consequences for non-payment of any instalment would appear from the allotment letter dated July 25, 1991. Admittedly, the respondents did not pay the instalments in terms of the allotment letters. The grounds mentioned by the respondents for non- payment of such instalments were the failure on the part of the appellant to provide basic amenities such as sewerage, electricity, roads etc. at the said Adampur Mandi Area.

c) On non-payment of the instalments, the appellant called upon the respondents to make the balance payments, being 75% of the cost with interest and penalty charges as prescribed in the said allotment letter. The respondents did not pay the same and filed a complaint before the District Forum alleging deficiency of services, failure to notify the Adampur Mandi as Market Area and failure to develop and provide basic amenities in the said locality. The appellant opposed the complaint on the ground that the respondents failed to make the payments of the instalments and further that one of the complainants was not dealing with the sale and purchase of agricultural produce by himself and instead had sublet the shop to someone else.

d) The District Forum appointed a Senior Member of the Forum as the Local Commissioner to inspect the said area and to file a report. The Local Commissioner filed a report stating that the area was developed with civic amenities and platforms were constructed in front of the shops. However, it is admitted that the complainant is not in a position to run the business in the market area as the same has not been notified by a notification and/or order declaring it as a sub-yard for the purpose of running the business. The District Forum held by order dated March 4, 1998 that the notification dated October 31, 1980 is not applicable since the land was auctioned in 1991 and further, the same was not in the ownership of the appellant and no business was transacted by the complainant at the Adampur Mandi. The District Forum held that since no notification was issued declaring the said area as sub-yard, it amounts to deficiency of service and the appellant was directed to withdraw the demand notice and further directed not to charge any interest on the instalments. The appellant filed first appeal before the State Commission, being First Appeal No.362 of 1998. The State Commissioner by order dated March 3, 1998 remanded the matter to the District Forum holding that the appointment of Local Commissioner, Shri Arya, being a member of the District Forum vitiated the proceedings.

e) Thereafter, the District Forum took up the matter and appointed an Advocate - Mr.