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2022 Supreme(Del) 1978

IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
TDI Infrastructure Ltd. - Appellant
Versus
Union of India - Respondent
CM(M) 1393 of 2017 & CM Appl. 44730 of 2017
Decided On : 20-05-2022

The main legal point established in the judgment is that a class action complaint under Section 12(1)(c) of the Consumer Protection Act requires specific averments to indicate 'sameness of interest' among the consumers, and the value of goods/services in respect of the complainants must exceed the de minimis Rs.1 crore to entitle the NCDRC to exercise jurisdiction.

Headnote:

Consumer Complaint - Class Action Complaint - Consumer Protection Act, 1986, Section 12(1)(c) - Summary

Fact of the Case:

The petition under Article 227 of the Constitution of India assails an order passed by the National Consumer Disputes Redressal Commission (NCDRC) in Consumer Complaint 1747/2016. The complaint was filed by Respondent 2 and Mr. Sukumar Pattjoshi against the petitioner under Section 21(a)(i) read with Section 12(1)(c) of the Consumer Protection Act, 1986, regarding a township project named 'TDI City' in Haryana. The complaint alleged various grievances related to the project, including lack of clear title, excessive collection of amounts, lack of basic amenities, and one-sided plot buyer agreement.

Finding of the Court:

The court found that the complaint did not contain specific particulars and was founded on generalized allegations. It held that the complaint did not satisfy the requirement for maintaining a class action proceeding under Section 12(1)(c) of the Consumer Protection Act, as it lacked requisite averments to indicate 'sameness of interest' among the consumers. The value of goods/services in respect of the complainants was also less than the de minimis Rs.1 crore, which would entitle the NCDRC to exercise jurisdiction.

Issues: The issues included the maintainability of the complaint as a class action proceeding, the jurisdiction of the NCDRC, and the lack of specific particulars in the complaint to indicate 'sameness of interest' among the consumers.

Ratio Decidendi: The court held that a class action complaint cannot be maintained by select consumers on behalf of a large number of unidentified consumers under Section 12(1)(c) of the Consumer Protection Act, in the absence of specific averment that all such consumers have 'sameness of interest'. It also ruled out the invocation of the jurisdiction of the NCDRC based on the value of the entire project, emphasizing the need to demonstrate the value of goods and services in respect of all the consumers who may legitimately be represented in the class action proceeding.

Final Decision: The court quashed and set aside the impugned order passed by the NCDRC and dismissed Consumer Complaint No. 1747/2016. However, it clarified that this would not operate as a fetter to Respondent 2 moving an appropriate complaint before the competent forum in accordance with the law if so advised.

JUDGMENT (Oral)

1. This petition under Article 227 of the Constitution of India assails order dated 23rd November, 2017, passed by the learned National Consumer Disputes Redressal Commission (the learned NCDRC) in Consumer Complaint 1747/2016, along with IA/10846/2016 and IA/1063/2017 (Vinod Kumar Gupta & Anr. v. TDI Infrastructure Ltd.) filed therein.

2. It may be noted, here, that, of the two complainants before the learned NCDRC, Complainant 2 settled the matter with the petitioner and, therefore, the proceedings before the learned NCDRC survived only in respect of Complainant 1 Vinod Kumar.

3. The petitioner has impleaded the Union of India as Respondent 1 as certain omnibus directions are sought, expressing grievance regarding the manner in which applications under Section 12(1)(c) of the Consumer Protection Act, 1986 are being disposed of by the learned NCDRC. I do not propose in this petition to enter into the said larger issue. Accordingly, the UOI is deleted from the array of parties.

4. There is no appearance on behalf of the respondents after 5th April, 2022, when a Counsel had appeared consequent to issuance of court notice on 31st March, 2022. Thereafter, however, though the matter has been listed on 7th April, 2022, 13th April, 2022, 20th April, 2022 and 27th April, 2022, Respondent 2 has remained unrepresented. Today the matter was passed over once and was called out a second time. There is no appearance on behalf of either of the respondents today.

5. The issue in controversy is covered by my recent decision in Lucina Land Development Ltd. v. UOI, 2022 SCC OnLine Del 1274.

6. As such, I have heard Ms. Kanika Agnihotri, learned Counsel for the petitioner and perused the record, and proceed to dispose of the present petition.

7. These proceedings emanate from a complaint, filed by Respondent 2 and Mr. Sukumar Pattjoshi against the petitioner under Section 21(a)(i) read with Section 12(1)(c) of the Consumer Protection Act, 1986 ("the Act" hereinafter). The grievances as ventilated in the complaint were with respect to a township project of the petitioner, named "TDI City", at Kundli Sonipat, Haryana (hereinafter referred to as "the Project"). Admittedly, the project comprised housing units in various blocks, designated as Blocks A to L. The complainants were buyers of residential plots in the project. They complained, in the complaint, that the plots allotted to them were undeveloped and inhabitable and were lacking basic amenities.

8. The grievances in the complaint included (i) lack of clear title, complete licenses and statutory sanctions, with the petitioner, (ii) collection of amounts from the consumers in excess of the price reflected in the statement issued by the petitioner at the stage of allotment, which was represented, at that stage, to be the complete and final price, (iii) escalation of the price of individual plots several times on the ground that the External Developmental Charges (EDC) had been revised by the State of Haryana retrospectively, along with penalty, (iv) usage, by the petitioner, of a part completion certificate issued by the concerned authorities in Haryana, without specifying the part of the project in respect of which the certificate had been issued, (v) handing over of possession, by the petitioner, to a limited number of plot holders, confined to the front blocks of the various units, (vi) execution of an allegedly one sided plot buyer agreement by the petitioner, (vii) lack of development works since several years and (viii) lack of basic amenities such as water, electricity etc. at the site.

9. While ventilating these grievances, the complaint does not contain any assertion to the effect that all these grievances were felt by all the purchasers of the residential plots in all the blocks of the project. Nonetheless, an omnibus prayer was made in the complaint, for a direction to the petitioner to return the amounts collected from the complaints and all consumers of resi

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