The District and State Consumer Forums have jurisdiction to adjudicate disputes arising from development agreements under the Consumer Protection Act, 1986, as 'housing construction' is included within the definition of 'service' under Section 2(o) of the Act.

1. Order impugned dated 19th May, 2014 passed by the learned State Consumer Disputes Redressal Commission, West Bengal, in M.A. No.115 of 2014 arising out of F.A. No. 620 of 2013 rejecting the petitioners/developers’ application praying for an order issuing direction upon the opposite party no.1 to show cause as to why appropriate proceeding under Section 27 of the Consumer Protection Act should not be drawn up against him and thereafter to draw up a proceeding and appropriate order may be passed and the petitioners/developers have also prayed for an order directing the respondent no.1/complainant to restore possession of flats A-3 and A-4 of the premises in question to the developers/petitioners is under challenge in this revisional application.

2. In the present case the opposite party no.1/complainant claimed that the petitioners/developers were promoters. The complainant along with proforma opposite parties being the proforma respondents entered into a development agreement with the developer on May 24, 2007 for development at premises no.5, Russa Road, South 3rd Lane, P.S. Jadavpur, Kolkata-700033. The development agreement contained certain terms and conditions. The complainants alleged before the District Forum constituted under Consumer Protection Act that in terms of development agreement complainants were entitled to get three complete habitable flats, two car parking spaces, two office rooms, one puja room, entire roof of Block ‘A’ of the building at the said premises. It was alleged that the developers failed to hand over complainants’ allocation including two office rooms with completion certificate within 55 days from the date of taking possession of the said tenanted portion. Since the developers did not hand over possession of the complainants’ allotment including office space with completion certificate, the complainants being the consumers within the meaning of Consumer Protection Act, 1986 filed the complaint case being CC No.107/2012 claiming compensation and a direction upon the developers to hand over khas possession of three complete habitable flats, two car parking spaces, two office rooms, one puja room, entire roof of Block ‘A” of the building at 5, Russa Road, South 3rd Lane, P.S. Jadavpur, Kolkata-700033 along with completion certificate issued by K.M.C. to the complainants. Further prayer was made for direction upon the developers to pay Rs.3 lacs to the complainants as compensation for non-completion of the project and to hand over khas possession of complainants’ allotment along with completion certificate within 55 days from the date of taking possession of old structure, etc. The complaint case was contested by the developers/petitioners by filing written objection. Learned District Consumer Disputes Redressal Commission allowed the complaint case in favour of the complainants/opposite parties. The developers were directed to hand over the complete property in question as per development agreement along with completion certificate within one month from the date of passing the order, failing which the complainant shall be at liberty to put the decree into execution in accordance with law. The developers were also directed to pay sum of Rs.3 lacs as compensation for non-delivery of the allocated area within 55 days and a sum of Rs.5 lacs for mental pain and agony and cost of Rs.25,000/- as costs of the present proceedings, total amounting to Rs.8,25,000/- within one month from the date of passing the order, failing which the said amount shall carry an interest at the rate of 10% per annum from the date of default till realisation. Against the order of the District Forum the developers/ petitioners preferred an appeal before the State Consumer Disputes Redressal Commission being First Appeal No.820 of 2013 alleging that the District Forum have passed the decree without going through the development agreement dated 24th May, 2007 and as per terms and conditions of the dee