SUPREME COURT OF INDIA
Mr. R.M. Sahai, J.
LUCKNOW DEVELOPMENT AUTHORITY—Complainant
versus
M.K. GUPTA—Opp. Party
Civil Appeal No. 6237 of 1990 with [S.L.P. (C) Nos. 659/91, 16842/92; C.A. Nos. 3963/89 5534/ 90, 6236/90, 5257/90, 2954-59 of 1992—Decided on 5.11.1993
(ii) Consumer Protection Act, 1986 - Sections 11, 17 and 21 - Jurisdiction of Consumer Disputes Redresses Agencies S. 2(1)(o) Definition of service. Whether ddiuitiol1 of service extends to deficiency in the building of a house or flat? (Yes) can a complaint be filed under the Act against a statutory authority or builder as a contractor for deficiency in respect immovable property? (Yes) Consumer Disputes Redresses Agencies hove Jurisdiction to entertain complaints regarding providing of deficient services in relation tolml11ovllhle property such us house or not in building, (Paras 3 & 4)
(iii) Consumer Protection Act, 1986-Section 2(1)(o) Defilation of service prior to 1993 amendment-Activities or Housing Construction bodies were services even prior to amendment in 1993. . (Paras 5 & 6)
(iv) Consumer Protection Act, 1986-Section 2(1)(d)(ii) and 2(1)(o) Definition of consumer & service Amendment of 1993. Words "avail" and "housing construction" Addition of respectively. In e1auses 2(1)(d)(ii) and 2(1)(o) It is by way of abundant caution Actually availed of services was in consumer und activities of housing construction were services even prior 1993 amendment. (Para 7)
(v) Consumer Protection Act, 1986-Section 14(1)(d)-Compensation for harassment and agony top consumer- Whether Redresses Agencies under COPRA can award such compensation? (Yes) The burden will fall initially as public fund which can be recovered form those who are found responsible for deficiency in service and negligence and by dividing it proportionality where there are more than one functionaries.
IMPORTANT POINT
Housing Construction Activities were in-, led in definition of Service u/s. 2(1)(o) of PRA even prior to 1993 amendment and that Consumer Redresses Agencies can award compaction for harassment and agony to consume 14 of the Act.
Mr. R.M. Sahai, J.—The question of law that arises for consideration in these appeals, directed against orders passed by the National Consumer Disputes Redressal Commission (referred hereinafter as National Commission), New Delhi is if the statutory authorities such as Lucknow Development Authority or Delhi Development Authority or Banga lore Development Authority constituted under State Acts to carry on planned development of the cities in the State are amenable to Consumer Protection Act 1986 (hereinafter referred to as 'the Act') for any act or omission relating to housing activity such as delay in delivery of possession of the houses to the allottees, non-completion of the flat within the stipulated time, or defective and faulty construction etc. Another aspect of this issue is if the housing activity carried on by the statutory authority or private builder or contractor came within the purview of the Act only after its amendment by the Ordinance No. 24 in 1993 or the Commission could entertain a complaint for such violations even before.
2. How the dispute arose in different appeals is not of any consequence except for two appeals which shall be adverted later, for determining right and power of the Commission to award exemplary damages and accountability of the statutory authorities. We therefore come straightway to the legal issue involved in these appeals. But before doing so and examining the question of jurisdiction of the District Forum or State or National Commission to entertain a complaint under the Act, it appears appropriate to ascertain the purpose of the Act, the objective it seeks to achieve and the nature of social purpose it seeks to promote as it shall facilitate in comprehending the issue involved and assist in construing various provisions of the act effectively. To begin with the preamble of the Act, which can afford useful assistance to ascertain the legislative intention, it was enacted, 'to provide for the protection of the interest of consumers'. Use of the word 'protection' furnishes key to the minds of makers of the Act. Various definitions and provisions which elaborately attempt to achieve this objective have to be construed in this light without departing from the settled view that a preamble cannot control otherwise plain meaning of a provision. In fact the law meets long felt necessity of protecting the common man from such wrongs for which the remedy under ordinary law for various reasons has become illusory. Various legislations and regulations permitting the State to intervene and protect interest of the consumers have become a haven for unscrupulous ones as the enforcement machinery either does not move or it moves ineffectively, inefficiently and for reasons which are not necessary to be stated. The importance of the Act lies in promoting welfare of the society by enabling the consumer to participate directly in the market economy. It attempts to remove the helplessness of a consumer which he faces against powerful business, described as, 'a network of rackets' or a society in which, 'producers have secured power' to 'rob the rest' and the might of public bodies which are degenerating into store house of inaction where papers do not move from one desk to another as a matter of duty and responsibility but for extraneous consideration leaving the common man helpless, bewildered and shocked. The malady is becoming so rampant, widespread and deep that the society instead of bothering, complaining and fighting for it, is accepting it as part of life. The enactment in these unbelievable yet harsh realities appears to be a silver lining, which may in course of time succeed in checking the rot. A scrutiny of various definitions such as 'consumer', 'service', 'trader', 'unfair' trade practice' indicates that legislature has attempted to widen the reach of the Act. Each of these definitions are in two parts, one, explanatory and the other explanatory. The explanatory or the main part itself u
2. 1991 (3) SCC 617. (Relied)[Para 3]
3. 1971 (3) SCC 550. (Relied)[Para 3]
4. AIR 1960 SC 610. (Relied)[Para 3]
5. 1976 (2) SCC 917. (Relied)[Para 11]
6. AIR 1990 SC 1849. (Referred)[Para 11]
8. AIR 1967 SC 1885. (Referred)[Para 12]
9. AIR 1973 SC 1289. (Relied)[Para 12]
10. AIR 1965 SC 1039. (Relied)[Para 13]
11. (1974) 1 SCC 690. (Relied)[Para 13]
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