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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Lucina Land Development Ltd. - Appellant
Versus
Union of India - Respondent
CM(M) 664 of 2018 CM Appl. 23358 of 2018 and CM Appl. 5843 of 2019
Decided On : 27-04-2022




Class action complaints under the Consumer Protection Act require demonstrable 'sameness of interest' among plaintiffs, which must be evident in the pleadings; mere common objectives are insufficient.

Headnote:(A) Consumer Protection Act, 1986 - Sections 12(1)(c), 21(a)(i), 2(1)(d)(ii) - Class action complaint - Petitioners accused of deficiency in service and unfair trade practices by allottees of flats - Allegations included acceptance of money before obtaining requisite approvals [Paras 1, 9, 20].

(B) Fair Trade Practices & Consumer Rights - Importance of sameness of interest in class action petitions - Requirements for maintaining a complaint under Section 12(1)(c) analyzed; it requires clear identifications of grievances shared by all allottees, found lacking in this case [Paras 35, 41, 48].

(C) Maintainability of Complaint - Court emphasized that the complaint demonstrates distinct grievances rather than common causes, leading to a lack of sameness of interest, ultimately dismissing the petition [Paras 49, 53].

(D) Reasoning of Court - The NCDRC's order found to inadequately assess the requirement of a common interest necessary for class action; the dismissal was affirmed to enable a properly constituted petition [Paras 46, 50]. (E)

Result: Petition Allowed; NCDRC's order quashed and set aside, complaint dismissed with liberty to refile [Para 54].

Table of Content
1. introduction of the consumer complaint case. (Para 1 , 2 , 3)
2. summary of the complainants’ concerns about the developer's practices. (Para 4 , 5 , 18 , 19)
3. summary of grievances related to construction and services (Para 6 , 12)
4. justifications of the complainants for class-action stands (Para 8 , 9)
5. court’s analysis on the legitimacy and interpretation of the complaint. (Para 10 , 11 , 14 , 15 , 32 , 33 , 38 , 46)
6. delay and service deficiencies leading to claims (Para 16)
7. criteria for class-action complaints in consumer cases (Para 21 , 23)
8. legal requirements for maintaining class-action under consumer protection act (Para 22 , 24)
9. criteria for class action maintainability under consumer rights law. (Para 26 , 40 , 52 , 53)
10. judicial observations on class-action maintainability criteria (Para 28 , 30 , 34)
11. the court's final judgment dismissing the complaint. (Para 54)

JUDGMENT (Oral)

1. These proceedings emanate from Consumer Case No. 1204/2017, which was a complaint filed before the learned National Consumer Disputes Redressal Commission (NCDRC) against the petitioner Lucina Land Development Ltd. and others by 51 allotees of flats in a project of the petitioners, titled "Indiabulls Greens Panvel" ("the project", hereinafter). The complaint, preferred under Section 21(a)(i)1 read with Section 12(1)(c)2 and 22(1)3 of the Consumer Protection Act, 1986 ("the 1986 Act") alleged that the petitioners were guilty of deficiency in service and were involved in unfair trade practices within the meaning of Section 2(1)(g)4 and 2(1)(r) of the 1986 Act.

2. The respondents, who were allottees of units in the project, alleged, in the complaint filed by them before the learned NCDRC, that they were "consumers" of the petitioners within the meaning of Section 2(1)(d)(ii)5 of the 1986 Act, as the units had been booked by the respondents for residence. Paras 4 and 11 to 19 of the complaint, which set out the grievances of the respondents, may be reproduced thus:

    "4. That, this complaint is preferred on behalf of the Complainants and for the benefit of all the allottees, who are consumers and are having the same interest as a Class Actions Petition. The Complainants submit that the facts of the case of each of the Complainants and all the allottees are same and the issues involved, disputes & controversies are common in nature having a common interest and have suffered identical deficiency of service and unfair trade practice, the terms and conditions of allotment are almost same and rely on identical evidences and therefore, come under the definition of Complainant as per section 2(1)(b)(iv) of the Consumer Protection Act, 1986. The Complainants, therefore, seek leave of this Hon'ble Commission to file a common complaint under section 12(i)(c) of the Consumer Protection Act, 1986 (as amended till date). A separate application in this regard is also being filed on behalf of the Complainants for grant of permission by this Hon'ble Commission to file one complaint for the benefit of all consumers so interested.

    *****

    11. That it has come to the knowledge of the complainants that at the time when the initial booking amount was received by the Opposite Parties in the month of August/September 2009 from some of the complainants, the Opposite Parties were not in possession of all the approvals for going ahead with the construction of the Project proposed to be constructed by them, then how could they have accepted money for selling the flats from the complainants i.e., unfair trade practices on the part of the Opposite Parties under Section 2(1)(r) of the Consumer Protection Act. 1986.

    12. It is thus an admitted position that the Opposite Parties were involved in unfair trade practice and deceiving tactics against the general consumers and particularly the present group of complainants as well as other allottees as the said project was launched and payments towards booking of the particular flats were bei

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