SUPREME COURT OF INDIA
N.V. RAMANA, MOHAN M. SHANTANAGOUDAR, AJAY RASTOGI, JJ.
PUNJAB URBAN PLANNING AND DEVELOPMENT AUTHORITY (NOW GLADA) – PETITIONER
VERSUS
VIDYA CHETAL – RESPONDENT
Petition(s) for Special Leave to Appeal (C) No(s). 4272 of 2015
WITH
PUNJAB URBAN DEVELOPMENT AUTHORITY AND ANOTHER – PETITIONERS
VERSUS
RAM SINGH – RESPONDENT
SLP (C) NO. 5237 of 2015
Decided On : 16-09-2019
(a) Interpretation of statute - Beneficial legislation - Purpose of interpretation is to find the legislative intent of an Act - Beneficial or remedial legislation needs to be given ‘fair and liberal interpretation’. (Para 6)
(b) Administration of justice - Judicial review - Court holding, in Sunita’s case, that statutory obligations are not encompassed under Consumer Protection Act, 1986 - No reasoning or elaboration provided - All statutory obligations are not sovereign functions - Sovereign functions do not contain consumer-service provider relationship in them and are not done for a consideration - However, welfare activities through economic adventures are covered under jurisdiction of consumer forums - Held, judgment in Sunita’s case cannot be sustained. (Para 9, 10, 14)
(c) Consumer Protection Act, 1986 - Sections 2(1)(g) and (o) - Deficiency in service - authority having power to levy certain statutory fee - By itself does not prohibit Consumer forums from evaluating the legality of such exactions or fulfilment of conditions by the authority before such exaction - Non-fulfilment of conditions or standards required, amounts to ‘deficiency in services’ under the Act. (Para 15)
(d) Interpretation of statute - Challenge to legality of exaction by authority - Does not extend to challenge of vires of a rule prescribing such fee - Such contentions are best agitated before the Constitutional Courts. (Para 15)
(e) Consumer Protection Act, 1986 - Section 3 - Statutory authority providing service other than core sovereign duties - Consumer forums will have jurisdiction to deal with such service - Unless statutorily exempted - ‘Tax’ and ‘fee’, distinction. (Para 16, 17, 19, 20)
Facts of the case:
This reference arises out of the order dated 13.07.2018, passed by a two Judge Bench of Supreme Court, wherein they expressed doubt as to the correctness of the judgment rendered in the case of HUDA vs. Sunita, (2005) 2 SCC 479. This Court therein held that the National Consumer Disputes Redressal Commission had no jurisdiction to adjudicate the legality behind the demand of “composition fee” and “extension fee” made by HUDA, as the same being statutory obligation, does not qualify as “deficiency in service”.
Finding of the Court:
Sovereign functions do not contain consumer-service provider relationship in them and are not done for a consideration. However, welfare activities through economic adventures are covered under jurisdiction of consumer forums.
Result: HUDA v. Sunita, (2005) 2 SCC 479 overruled.
JUDGMENT
N.V. RAMANA, J.
1. The reference before us arises out of the order dated 13.07.2018, passed by a two Judge Bench of this Court, wherein they expressed doubt as to the correctness of the judgment rendered in the case of HUDA vs. Sunita, (2005) 2 SCC 479. This Court therein held that the National Consumer Disputes Redressal Commission (hereinafter referred to as “NCDRC”) had no jurisdiction to adjudicate the legality behind the demand of “composition fee” and “extension fee” made by HUDA, as the same being statutory obligation, does not qualify as “deficiency in service”.
2. It is pertinent herein to note the opinion expressed by the two-Judge Bench regarding the decision in the case of Sunita (supra) while passing the referral order:
“We are, prima facie, of the view that this six paragraph order, which does not, prima facie, contain any reason for the conclusion reached, requires a relook in view of the fact that the Consumer Protection Act, 1986 is a beneficent legislation”
3. The counsel on behalf of the petitioner submitted that the order in the case of Sunita (supra) is well reasoned, as it validly holds that the NCDRC lacks jurisdiction to decide the legitimacy behind the demand of “composition fee” and “extension fee”. Relying on the aforesaid holding, the counsel further stated that “statutory dues” cannot be claimed as “deficiency in services”. Lastly, the learned counsel submitted that although the Consumer Protection Act, 1986 (hereinafter referred to as “the Act”) is beneficial in nature, demanding a liberal construction, the same cannot be used to extend the ambit of the Act by bringing in remedies or benefits which were not intended by the legislature.
4. On the contrary, the learned senior counsel appointed by this Court as amicus curiae to assist and appear on behalf of the respondent claimed that the order passed in the case of Sunita (supra), is an aberration in a series of longstanding judgments by this Court. The learned amicus curiae thereafter placed strong reliance upon the judgments of this Court in Lucknow Development Authority v. M.K. Gupta, (1994) 1 SCC 243, and Ghaziabad Development Authority v. Balbir Singh, (2004) 5 SCC 65, wherein it was held that the NCDRC has the jurisdiction to protect consumers against defective services rendered even by a statutory body. Further, the learned amicus curiae, while supporting the view that the Sunita case (supra) was per incuriam, has taken us through various judgments of this Court in this regard and submitted that the statutory authorities come under the ambit of the Act.
5. Heard the learned counsel appearing on behalf of the petitioner and the learned amicus curiae in this case. The precise question raised before us is whether the law laid down by this Court in the case of Sunita (supra) is valid. We may note that the validity of interpretation furthered in the case of Sunita (supra) hinges on the interpretation of Section 2(1)(d), 2(1)(e), 2(1)(f), 2(1)(g) and 2(1)(o) of the Act.
6. At the outset, we must remind ourselves that answer to majority of legal questions before Courts essentially lie in the process of interpretation [Justice Felix Frankfurter, Some Reflections on Reading of Statutes, Columbia Law Review, VOL. 47, Issue 4, PP. 527546]. This Court in Commissioner of Customs (Import), Mumbai v. Dilip Kumar and others, (2018) 9 SCC 40, had emphasized that the purpose of interpretation is to find the legislative intent of an Act. It is established by umpteen number of cases in India and abroad that beneficial or remedial legislation needs to be given ‘fair and liberal interpretation’ [refer Om Prakash v. Reliance General Insurance and Anr., (2017) 9 SCC 724]. In this regard we may note that, the liberal construction, extends the letter to include matters within the spirit or purpose [Sutherland, Statutes and Statutory Construction, §5505 (Callaghan, 1943).].
7. Having observed the law on beneficial interpretation, we need to observe the concerned statu
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