The main legal point established in the judgment is that parties are bound by the terms of the agreement, and failure to fulfill the agreed obligations can lead to compensation under the Consumer Protection Act.

Mr. Justice R.S. Mongia, President—This is an appeal by the opposite parties before the District Forum (four in number) against the order of the District Forum dated 4.1.2000 by which the complaint filed by Ravi Kiran Jain was allowed in the following terms :

“So we accept this complaint with costs and in terms of the agreement Ex. C-2 we grant Rs. 1,50,000 as damages along with interest @ 18% from 31.10.1998 till its payment or till to provide the fully operational Elevator. The interest has been allowed as compensation for mental tension, harassment and for not proper use of the property purchased by the complainant for running his profession. Besides that the opposite parties will pay Rs. 5,000 as cost of this complaint. The opposite parties have been directed to comply with the directions of this Forum within one month from the receipt of this order. Copy of this order be sent to the parties free of cost by registered post or in person under the rules. Record be consigned.”

2. The facts are not much in dispute. Ravi Kiran Jain, complainant, filed a complaint before the District Forum on 15.7.1999 with the allegation that he had purchased property measuring 446 sq. ft. located on the fourth floor in the building known as Kapilvastu situated in Civil Lines, Jalandhar, from opposite party Nos. 3 and 4 i.e., Lalit Bahri and Deepak Bahri, who were the owners of the property and had executed a sale deed in favour of the complainant. Mr. Narinder Puri, who was opposite party No. 1, was the Managing Director of M/s. Bison Builders and Properties whereas opposite party No. 2 was M/s. Bison Builders itself. It was the case of the complainant that at the time of effecting the sale and delivery of the possession of the area purchased on the 4th floor of the building, opposite parties had agreed to provide fully operational Elevator (Lift) by 31.10.1998. In fact, to straighten the matter, an agreement by the opposite parties (the present appellants) was also entered into with the complainant on 27.6.1998, Ex. C-2, that the lift will be provided by 31st October, 1998 failing which the opposite parties will pay a sum of Rs. 1.5 lakh to the complainant. Detailed reference to Ex. C-2 will be made hereinafter. The opposite parties having failed to provide the lift by the stipulated date and even having failed to honour the agreement dated 27.6.1998 to pay Rs. 1.5 lakh, the complaint was filed before the District Forum claiming Rs. 3 lakh, including the agreed amount of Rs. 1.5 lakh, as damages/compensation for causing inconvenience, harassment and mental agony to the complainant. Costs of the complaint were also claimed. As observed above, the complaint was allowed on 4.1.2000.

3. Hence the present appeal.

4. Opposite party Nos. 1, 2 and 4 had filed a combined reply to the complaint and separate reply on behalf of opposite party No. 3 was filed. The preliminary objection by the opposite party Nos. 1, 2 and 4 as also by opposite party No. 3 was taken which is in the following terms :

“That the matter regarding the installation of the lift and the consequences that were to follow on account of the non-installation of the lift, had already been settled between the parties vide agreement dated 27.6.1998. In view of the said agreement and settlement between the parties, no complaint under the Consumer Protection Act, is maintainable.”

5. It was further stated in the reply that all the purchasers in the building had not paid the entire consideration and, therefore, the lift could not be provided. During the course of arguments it was also argued before the District Forum that the complainant was not a consumer. Further in view of the agreement dated 27.6.1998 between the parties, remedy, if any, lay before the Civil Court.

6. Before we proceed further in the matter it will be apposite to reproduce the agreement dated 27.6.1998, Ex. C-2 made between the parties :

“This agreement is made this 27th day of June, 1998, at Jalandhar between Shri Lali