A consumer must have privity of contract to claim rights under the Consumer Protection Act, which was absent in this case.

JUDGMENT :

(Ahsanuddin Amanullah, J.)

The present appeal impugns the Final Judgment and Order dated 19.01.2023 [2023 SCC OnLine NCDRC 19] in Consumer Complaint No.919 of 2018 (hereinafter referred to as the ‘Impugned Order’) passed by the learned National Consumer Disputes Redressal Commission, New Delhi (hereinafter referred to as the ‘NCDRC’), whereby the complaint filed by the respondent was allowed and the appellant was directed to refund Rs.13,20,000/- (Rupees Thirteen Lakhs Twenty Thousand) with interest @ 12% per annum and pay Rs.1,00,000/- (Rupees One Lakh) as litigation cost.

FACTUAL BACKGROUND:

2. The respondent-complainant purchased Flat No.701, B-Wing, 7th Floor, Riddhi Siddhi Heritage, Plot Nos.56 & 57, Sector-19, Airoli, Navi Mumbai (hereinafter referred to as the ‘flat’) on 30.05.2006. The respondent had availed a housing loan of Rs.17,64,644/- (Rupees Seventeen Lakhs Sixty-Four Thousand Six Hundred Forty-Four) from ICICI Bank, Malad, East Mumbai Branch. In February 2008, one Mr. Mubarak Vahid Patel (hereinafter referred to as the ‘borrower’) approached the respondent to purchase the flat for a consideration of Rs.32,00,000/- (Rupees Thirty-Two Lakhs). On 09.02.2008, the respondent and the borrower entered into a Memorandum of Understanding (hereinafter referred to as the ‘MoU’) for sale of the flat. On the same day, a Tripartite Agreement was purportedly entered into between the respondent, borrower and the appellant. Subsequently, the respondent and the borrower entered into an Agreement for Sale dated 12.02.2008 for the sale of the flat for a consideration of Rs.32,00,000/- (Rupees Thirty-Two Lakhs). Out of the total consideration of Rs.32,00,000/- (Rupees Thirty-Two Lakhs), Rs.1,00,000/- (Rupees One Lakh) was paid through a post-dated cheque dated 12.02.2008 and for the remaining Rs.31,00,000/- (Rupees Thirty-One Lakhs), the borrower approached the appellant for a housing loan.

3. The appellant and borrower entered into a Home Loan Agreement dated 28.02.2008, by which the appellant agreed to grant a loan of Rs.23,40,000/- (Rupees Twenty-Three Lakhs Forty Thousand) to the borrower. As the flat was already mortgaged with ICICI Bank, the borrower requested the appellant to disburse an amount of Rs.17,80,000/- (Rupees Seventeen Lakhs Eighty Thousand) directly to the respondent’s ICICI Bank account, in order to secure the release of the flat. On 11.04.2008, the appellant granted in-principle approval for the loan. The above payment was made by the appellant and thereafter an amount of Rs.5,09,311/- (Rupees Five Lakhs Nine Thousand Three Hundred Eleven) remained to be disbursed to the borrower. The appellant issued a cheque for the balance sanctioned amount of Rs.5,09,311/- (Rupees Five Lakhs Nine Thousand Three Hundred Eleven) in favour of the borrower in 2009. However, the borrower did not encash this cheque and closed the loan account.

4. On 16.04.2018, the respondent filed Consumer Complaint No.919 of 2018 before the NCDRC, inter alia, praying for directions to the appellant to pay compensation due to the loss caused to him for non- payment of the balance Rs.13,20,000/- (Rupees Thirteen Lakhs Twenty Thousand) under an alleged Tripartite Agreement dated 09.02.2008. Vide Order dated 06.09.2018 [2018 SCC OnLine NCDRC 1416], the NCDRC, after hearing both parties, dismissed the complaint at the pre-admission stage holding that the respondent cannot be said to be a ‘consumer’ within the meaning of the Consumer Protection Act, 1986 (hereinafter referred to as the ‘Act’). The respondent then filed Review Application No.326 of 2018 in Consumer Complaint No.919 of 2018, which came to be dismissed by the NCDRC vide Order dated 20.09.2018. Thereafter, the respondent approached this Court by filing Civil Appeals No.10408-10409 of 2018, [Snehasis Nanda v M/s Citicorp Finance (India) Limited (Formerly Citifinancial Consumer Finance India Limited).] By Order dated 06.09.2019, this Court allowed the said civil appeals and set aside