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2022 Supreme(Del) 711

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
DLF Homes Rajapura Pvt. Ltd - Petitioner
Vs.
Late O.P. Mehta & Anr. - Respondents
CM(M) 574 of 2022, CM 27502 of 2022 (exemption), CM 27501 of 2022 (stay) and CM 29443 of 2022 (stay)
Decided On : 11-07-2022

Advocates:
Advocate Appeared:
For the Appellant : Ms. Kanika Agnihotri, Ms. Sonia Dhamija, Ms. Shweta Priyadarshni, Ms. Seema Sundd, Mr. Prabhat Ranjan, Mr. Alabhya Dhamija and Mr. Drouhn Garg, Advs.
For the Respondent: Mr. Chandrachur Bhattacharya, Mr. Manoj Kumar Dubey and Ms. Divya, Advs.

Point of Law: Article 227 operates within a narrower compass than appellate jurisdiction. Where, therefore, scope of interference with discretionary orders is limited even in exercise of appellate jurisdiction, scope of such interference, while exercising jurisdiction under Article 227, would be still more circumscribed.

Headnote:

Consumer Protection Act, 1986 - Section 12(1)(c) r/w 13(6) - Constitution of India, 1950 - Article 227 - Code of Civil Procedure, 1908 - Order I Rule 8 - Limitation Act, 1977 - Article 121 - Flat Buyers Agreement - Possession - Condonation of delay - Procedure in case of death of one of several plaintiffs or of sole plaintiff - Whether consumer complaint case filed by respondents had abated, no formal application for substitution of the legal heirs of Respondent 1 having been preferred within time stipulated in that regard (which would also involve issue of whether Order XXII Rules 3 and 4 of CPC were applicable in present case) - if so, whether IA, for substitution of legal representatives of deceased Respondent 1, could suffice and be treated as an application for setting aside abatement of the complaint - Alleged that, though the flats were required to be handed over. Instead, highly belated final demand notes were issued; to Respondent 1 and to Respondent 2. This, it was alleged, had breached Flat Buyers Agreement - Impugned order passed by learned NCDRC in IAs, is quashed and set aside only on ground that order does not make out a sufficient case to condone delay of 607 days in filing IA - Learned NCDRC is requested to take a view in the matter in accordance with facts and law, after hearing the parties and following the principles of fair play and natural justice. (Para 81 and 82)

Finding of the court: Section 12(1)(c) of the Act states that "a complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by one or more consumers, where there are numerous consumers having same interest, with the permission of District Forum, on behalf of, or for the benefit of, all consumers so interested - Undisputedly, on date when the impugned order came to have been passed by the learned NCDRC, no permission had been granted by it, under Section 12(1)(c) of the Act, for filing a complaint in a representative capacity - Once it is held that Rules 3 and 4 of Order XXII apply to present case, inexorable sequitur is that, no application for substitution of the legal representative of Respondent 1 having been filed on or before 23rd July 2019, the complaint filed by the respondents abated on the said date - If there was no separate prayer for setting aside the abatement of a suit, a prayer for bringing the legal representatives of deceased party on record was capable of being regarded as a prayer for setting aside the abatement of the suit.

Result: Petition allowed

JUDGMENT :

Factual Backdrop

1. Consumer Case No. 697/2018 was preferred by O.P. Mehta and Siddharth Wadia, the respondents herein, against the petitioner DLF Homes Rajapura Pvt Ltd, before the learned National Consumer Disputes Redressal Commission ("the learned NCDRC" ) under Section 12(1)(c) [12. Manner in which complaint shall be made. – (1) A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by – ***** (c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested;"] read with Section 13(6) [13. Procedure on admission of complaint. – ***** (6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub- section (1) of Section 2, the provisions of Rule 8 of Order I of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a complaint or the order of the District Forum thereon.] of the Consumer Protection Act, 1986 ("the Act" , hereinafter) read with Order I Rule 8 [The relevant clauses of Order I Rule 8 read thus: "8. One person may sue or defend on behalf of all in same interest. – (1) Where there are numerous persons having the same interest in one suit,- (a) one or more of such persons may, with the permission of the Court, sue or be sued, or may defend such suit, on behalf of, or for the benefit of, all persons so interested; (b) the Court may direct that one or more of such persons may sue or be sued, or may defend such suit, on behalf of, or for the benefit of, all persons so interested. (2) The Court shall, in every case where a permission or direction is given under sub-rule (1), at the plaintiff's expense, give notice of the institution of the suit to all persons so interested, either by personal service, or, where, by reason of the number of persons or any other cause, such service is not reasonably practicable, by public advertisement, as the Court in each case may direct."] of the Code of Civil Procedure, 1908 (CPC).

2. Consumer Case No. 697/2018 would be referred to, hereinafter, as "the complaint" .

3. Consumer Case No. 697/2018 was filed as a "joint consumer complaint" , and was stated to have been "preferred in a representative capacity …. for the benefit of entire class of persons having the same interest" , before the learned NCDRC. The consumers purportedly having the same interest, whom the respondents sought to represent, were investors in the 'Maiden Heights‘ housing project of the petitioner at Bangalore. The complaint averred that Clause 9.3(a) of the Flat Buyers Agreement, executed between the petitioner and each of the subscribers/investors in the project, required the petitioner to hand over, to the investors, possession of the flats in the project within 60 days from the date of their application. Qua Respondents 1 and 2, for example, the complaint alleged that, though the flats were required to be handed over on 13th April 2014 and 24th May 2014 respectively. Instead, highly belated final demand notes were issued; to Respondent 1 on 19th December 2016 and to Respondent 2 on 7th June 2016. This, it was alleged, had breached the Flat Buyers Agreement. Possession of the flats, it was asserted, was required to be handed over on 13th April 2014. Possession of the flats was offered to the investors much later, but, even then, the complaint alleged that the flats were not in habitable condition, and several facilities and amenities, which were required to be provided in the flats, including permanent electricity and water connection, were absent.

4. For these reasons, the complaint sought a direction to the petitioner to refund, to the respondents and other flat buyers having the same interest,

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