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1993 Supreme(Bom) 184

IN THE HIGH COURT OF BOMBAY
(BOMBAY)
Justice G.G. Loney, President Smt. Ellen Dharkar, Member.
Prakash G. Deshpande... Complainant.
Versus
Sau. Lata V. Kulkarni and others... Opposite-parties.
Complaint No. 76 of 1992, decided on 12-4-1993.

A complaint alleging deficiency in service is not maintainable if there is no privity of contract between the complainant and the opposite parties.

Headnote:

CONSUMER PROTECTION ACT, 1986 - PRIVITY OF CONTRACT - SECTION 2(1)(D) - A complaint alleging deficiency in service is not maintainable if there is no privity of contract between the complainant and the opposite parties.

Fact of the Case:

The complainant alleged that he had booked a flat and paid Rs. 43,000/- to the opposite parties. He claimed that he was ready to purchase the flat and perform all necessary acts for getting the sale deed executed in his favor. Alternatively, he sought a refund of the amount paid.

Finding of the Court:

The court found that there was no privity of contract between the complainant and the opposite parties. The complainant had not entered into any agreement with the opposite parties for the construction of a flat. The letter issued by the opposite party in favor of the complainant did not constitute an agreement.

Issues: Whether there was a privity of contract between the complainant and the opposite parties.

Ratio Decidendi: The court held that the complainant was not a consumer within the meaning of Section 2(1)(d) of the Consumer Protection Act, 1986, as there was no privity of contract between him and the opposite parties. Therefore, the complaint alleging deficiency in service was not maintainable.

Final Decision: The complaint was dismissed.

JUDGMENT - Justice G.G. LONEY, President:—In this complaint, it is alleged by the complainant that he had booked a flat bearing No. 6-B in a scheme quoted by the Opposite parties 1 and 2. The complainant further alleged that he paid Rs. 30,000/-. He further alleged that he paid Rs. 13,000/- to opposite party No. 3. It is the allegation of the complainant that he had very good relations with opposite party No. 3 and therefore, through him he had booked the flat in question. It also alleged that complainant paid Rs. 13,000/- on 15-1-1990 as demanded by opposite party No. 3. The complainant alleged that he was to obtain loan for the purchase of the flat but the opposite parties did not oblige him by giving him all the necessary documents to facilitate him to obtain the loan. According to complainant, since he could not get the loan for want of the necessary documents from the opposite party, he has been put to loss. He also alleged that Rs. 43,000/- which he paid for the aforesaid flat are still lying with the opposite parties. The complainant therefore, submitted that he is ready and willing to purchase the aforesaid flat and to perform all the necessary acts for getting sale deed executed in his favour. In the alternative, the complainant prayed for return of Rs. 43,000/- + Rs. 60,000/- + Rs. 21,285 as compensation. The claim of the complainant was opposed by the opposite parties. The opposite parties No. 1 2 claimed in their joint written version that one Shri S.G. Deshpande, who is working in the Irrigation Department had booked a flat in the name of the complainant. It is also submitted that the said S.G. Deshpande, is the brother of complainant and also had deposited the amount of Rs. 10,000/- and 20,000/- on 10-7-1989 and 16-7-1989 in cash. It is also submitted that the receipts were handed over to the said S.G. Deshpande, the complainant's brother, and therefore, a letter was issued in favour of the complainant dated 1-8-1989 showing that the flat has been allotted to him and requested to make the payment of further instalment. It is the case of the opposite party No. 1 2 that complainant never paid any amount to them towards the flat in question and never entered into an agreement with them. It is also submitted that the said S.G. Deshpande had booked other flats at Nagpur in the name of his 2 brothers and mother. It is however the case of the opposite parties 1 and 2 that since Shri S.G. Deshpande could not pay the balance amount towards the flats which he had booked, his allotment of flat No. 6-B in question was cancelled and the amount paid for the flat in question was adjusted towards other flats booked by Shri S.G. Deshpande. It is therefore, submitted by the opposite party 1 2 that they had no privity of contract with the complainant in relation to the flat in question and therefore, the complaint be dismissed. It is also stated that complainant had filed the complaint before the District Forum, Nagpur and the same was dismissed in default of complainant.

2. In his written version, the opposite party No. 3 has stated that he has no concern in this transaction and therefore, he has been unnecessarily made party in this complaint.

3. We have heard complainant in person. Opposite party 1 2 by Shri Badge, Advocate and opposite party No. 3 was heard by Mrs. Padole, Advocate.

4. We have carefully gone through the allegations made by the complainant and the written versions filed by the opposite parties. We have also exhaustively heard the arguments of all the parties. We find substance in the defence of the opposite parties No. 1 2 that there is no privity of contract between the complainant and the opposite parties 1 2. There is no agreement between the complainant and the opposite parties 1 2 showing that complainant had hired any services of the opposite parties No. 1 2 for the purpose of construction of a flat for the complainant. The entire basis of the complainant's claim is a letter dated Aug



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