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2019 Supreme(SC) 1411

SUPREME COURT OF INDIA
UDAY UMESH LALIT, INDIRA BANERJEE, M.R. SHAH, JJ.
Sunil Kohli & Anr. - Appellants
Versus
M/s. Purearth Infrastructure Ltd. - Respondent
Civil Appeal Nos.9004-9005 of 2018
Decided on : 01-10-2019

Advocates:
Advocate Appeared:
For the Appellant : Mr. Pallav Shishodia, Sr. Adv., Mr. Ravi Mehrotra, Adv., Mr. Navdeep Singh, Adv., Mr. R.K. Sinha, Adv., Mr. Dharmendra Kumar Sinha, AOR
For the Respondent: Mr. Gaurav Mitra, Adv., Mr. Aman Gupta, AOR, Mr. Adit Singh, Adv., Ms. Divya Gupta, Adv.

IMPORTANT POINT
If commercial use is by purchaser himself for the purpose of earning his livelihood by means of self-employment, such purchaser of goods is yet a consumer.

Headnote:

Consumer Protection Act, 1986 – Section 2(1)(d) – Consumer complaint – Maintainability – Purchase of premises – In certain situations, purchase of goods for commercial purpose would not yet take purchaser out of definition of expression consumer – If commercial use is by purchaser himself for the purpose of earning his livelihood by means of self-employment, such purchaser of goods is yet a consumer – Complainants wanted to dispose of property in DENMARK and wanted to come down to Delhi to start a business – It is for this purpose that premises in question were booked – Evidence also discloses that Complainant no.1 was not employed any more in DENMARK and he was serving RED CROSS, a charitable organization – In the circumstances, it cannot be ruled that case of Complainants would not come within definition of “consumer” as defined under provisions of the Act – View taken by National Commission set aside and matter remitted back to National Commission to consider other issues. (Paras 11, 14, 15, 16 and 17)

Facts of the case:

Instant appeals under Section 23 of Consumer Protection Act, 1986 challenge judgment and final order dated 03.04.2018 passed by National Consumer Disputes Redressal Commission in Consumer Complaint No.62 of 2013 and also against the order dated 01.05.2018 passed by the National Commission dismissing Review Application No.129 of 2018 preferred by appellants herein.

Findings of Court:

National Commission had confined itself to questions whether complainants were ”consumers” or not, and, whether dispute came within parameters and provisions of the Act, and other issues, namely, whether respondents were deficient in rendering services, and if so, whether any compensation would be payable, were not dealt with by National Commission.

Result : Appeals allowed.

JUDGMENT :

UDAY UMESH LALIT, J.

1. These appeals under Section 23 of the Consumer Protection Act, 1986 (hereinafter referred to as “the Act”) challenge the judgment and final order dated 03.04.2018 passed by the National Consumer Disputes Redressal Commission (for short “the National Commission) in Consumer Complaint No.62 of 2013 and also against the order dated 01.05.2018 passed by the National Commission dismissing Review Application No.129 of 2018 preferred by the appellants herein.

2. The facts leading to the filing of the aforesaid Consumer Complaint were set out by the National Commission in para nos.2, 3, 4 and 5 of its order dated 03.04.2018 as under:

    “2. It is alleged that the complainants are non-resident Indians presently residing in Denmark. They intend to shift to India. Thus with the intention to earn their livelihood they booked shop No.P-3-115 having super area 1095 sq. ft. @ 9900 per sq. ft. Total consideration payable for the shop was Rs.1,08,40,500/-. As per the terms and conditions of the agreement the opposite party had assured to give possession of the shop to the complainants within two years from the date of commencement of construction. The consideration amount was payable in following manner:-

    “i. At Booking

    20% of the basic sale price

    ii. Within 30 days of booking

    20% of the basic sale price

    iii. Within 60 days of booking

    20% of the basic sale price

    iv. Within 90 days of booking

    12.5 of the basic sale price.

    v. On completion of common Area Flooring

    7.5% of the basic sale price

    vi. On completion of Façade

    7.5% of the basic sale price

    vii. On completion of Services

    7.5% of the basic sale price

    viii. On offer of possession

    5% of the basic sale price”

    3. It is alleged by the complainants that they paid installments of Rs.21,61,100/-on 10th August, 2007, 10th September, 2007 and 4th October, 2007. They also paid installments amounting to Rs.13,55,063/-on 2.11.2007 and Rs.8,13,038/-on 6th December, 2007. The opposite party thus on receiving 80% of the consideration amount sent two sets of agreement for signatures of the complainants which were signed and returned back to the opposite party on 10th March, 2008.

    4. On 18.6.2009 the complainant by way of e-mail sought information about the status of the project as also the date by which the opposite party proposed to deliver possession of the subject unit. The opposite party vide e- mail dated 29.6.2009 informed that the plaza was ready for possession except that completion certificate was awaited.

    Thereafter, on 9th July, 2009 the opposite party demanded last installment of Rs.5,42,025/-against the sale consideration which was also paid. It is alleged that despite having received 100% payment of the consideration amount the opposite party has failed to deliver possession of the subject unit even years after the expiry of the stipulated date of deliver of possession. Claiming this to be unfair trade practice and deficiency in service on the part of the opposite party, the complainants have raised the consumer dispute seeking following prayer:-

    “(i) Direct the OP to pay Rs.1,11,30,501/-(Rupees one crore eleven lakhs thirty thousand five hundred and one) towards compensation which has become due as on today;

    (ii) Direct the OP to give possession and title of the said shop to the complainants;

    (iii) Direct the OP to account for or refund Rs.2,85,131/-with interest of 18% in case the said money has not been accounted for or not paid for construction of fly over;

    (iv) Pay compensation of Rs.20,00,000/-for the financial loss, mental and physical agony;

    (v) Pay Rs.3 lacs towards litigation cost.”

    5. The opposite party in its written statement has raised preliminary objection as to locus standi of the complainants to file the complaints on the plea that the subject shop was booked by the complainants for commercial p


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