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MAHARASHTRA STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, MUMBAI
Hon’ble Mr. Justice M.S. Rane,
President & Dr. R.N. Varhadi, Member
HARMANADAR SINGH SETHI & ANR.—Appellants
versus
J.K. MEHRA & ANR.—Respondents
Appeal Nos. 1291 & 1292 of 2003—Decided on 17.12.2003

Advocates:
Counsels for the Parties :
For the Appellants :Ms. Poonam Makhijani i/b. Mr. Uday Wavikar, Advocate.
For the Respondent:Mr. Kiran Patil, Advocate.

The main legal point established in the judgment is that 'housing construction' falls within the ambit of the Consumer Protection Act, 1986, and disputes related to it should be considered in the light of provisions of the Maharashtra Flat Ownership Act, 1963.

Headnote:

Consumer Protection Act - Housing Construction - Section 2(1)(o) of Consumer Protection Act, 1986 - Section 2(1)(o)

Fact of the Case:

The flat purchasers filed complaints against the Builders for various grievances such as non-payment of electricity bills and non-refund of refunded deposit. The District Forum dismissed the complaints, stating that the disputes were not amenable to its jurisdiction.

Finding of the Court:

The court found that the disputes fell within the purview and ambit of the Consumer Protection Act, 1986 as consumer disputes and should be considered in the light of provisions of the Maharashtra Flat Ownership Act, 1963.

Issues: The main issue was whether the disputes between the flat purchasers and the Builders were amenable to the jurisdiction of the District Forum.

Ratio Decidendi: The court held that 'housing construction' falls within the ambit of the Consumer Protection Act, 1986, and the disputes should be considered in the light of provisions of the Maharashtra Flat Ownership Act, 1963.

Final Decision: The appeals were allowed, and the matters were remitted to the South Mumbai District Forum for consideration afresh on merits except on the point of limitation.

ORDER

Mr. Justice M.S. Rane, President—We are proceeding to dispose of both of these appeals at the stage of their admission itself. Respondents-org. O.Ps. are present through their Advocates in response to the notices before admission issued by us on 23rd September, 2003.

2. We are proceeding to dispose of these appeals on hearing the learned Advocates for the parties as above and on perusal of the material available in the appeal paper book with common judgment since the factual aspects involved in both the matters are identical. Respondents are also common in both the appeals and status of the complainant in both the appeals is also identical being flat purchasers.

(For brevity’s sake parties are hereinafter referred to as appellants-org. complainants as ‘Flat Purchasers’ and respondents-org. O.Ps. as `Builders’).

3. The flat purchasers are the appellants in both the appeals who have filed these appeals being aggrieved by the order dated 22nd July, 2003 passed in the respective complaints by the District Forum, whereby District Forum proceeded to dismiss both the complaints with a view that the disputes being the subject matters thereof were not amenable to its jurisdiction. Inter alia it is perceived by the District Forum that the subject matters of both the complaints was of a civil nature and as such it declined to entertain the same as consumer disputes.

4. It is noticed that the flat purchasers alleged various grievances against the Builders such as non-payment of electricity bills, non-refund of refunded deposit, etc.

5. The Builders-O.Ps. appeared before the District Forum in response to the show-cause notices issued and resisted the claims raising several contentions, which are reflected even in the impugned orders.

6. District Forum however took the view that the nature of disputes as raised in the complaints was not amenable to its jurisdiction.

7. We are of the view that the perception of the District Forum in both the matters as above, is not proper as also justified as pointed out herein below.

8. It is to be stated that the disputes as filed and as averred in the complaints will be against the Builders as provider of the services.

9. In this respect, Sub-section (o) of Section 2(1) of Consumer Protection Act, 1986, which defines service proceeds in this manner:

“2(1)(o)—`Service’ means service of any description which is made available to potency users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, [housing construction], entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service;”

[Emphasis supplied].

It would be noticed that “housing construction” has been included as one of the kind of services so as to be falling within the ambit of the Consumer Fora under Consumer Protection Act, 1986. The said kind of service has been incorporated in the said definition clause by way of amendment affected in the year 1993.

10. Expressing “Housing construction” as appearing in the above definition clause cannot be given a narrow meaning. In our view, the same would include various aspects concerning and pertaining the housing construction, such as, deals between the parties. viz., Builder and Flat Purchaser, execution of relevant documents, such as Agreements, Final Sale Deed, payment of consideration, related contractual as also statutory obligations between them, and so on as more particularly specified in Maharashtra Flat Ownership Act, 1963 under which statutory rights have been provided and various obligations and the duties are caste upon the flat purchasers as also the Builders.

11. That being so, dispute between the flat purchasers and the Builders as is the case in the matters in hand have to be considered in the light of provisions of Maharashtra Flat Owner


















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