IMPORTANT POINT
Right of bonafide Purchaser in an illegal auction sale can be protected by Consumer Forum.

ORDER

This revision petition has been filed against an order dated 16.06.2011 passed by Haryana State Consumer Disputes Redressal Commission, Panchkula ( in short, the State Commission) in First Appeal no. 775 of 2011. Vide the impugned order, the State Commission had confirmed the order of the District Forum dated 09.12.2010, whereby the complaint of the complainant respondent was accepted and following directions were issued

“.... The respondent corporation is directed to refund an amount of Rs.13,75,000- to the complainant with interest @ 9% p.a. from the date of its deposit i.e. 30.04.2008, till the date of payment. The respondent is also directed to pay Rs.2200- as litigation expenses to the complainant.”

2. The appeal of the petitioner vide the impugned order was dismissed on merits as well as on the ground that it was barred by limitation. Counsel while arguing the matter has not pressed the argument on the limitation but has argued that impugned order whereby the appeal was dismissed on merit, suffers with illegality and vital facts were not taken into consideration and, therefore, impugned order is liable to be set aside. It is argued that findings of the Fora below that there was a sewerage line underneath the shop is a wrong finding and there was only a service connection. On behalf of the respondent, it is argued that there is concurrent finding of fact that at the time when the subject property was put to auction by the petitioner, they had concealed the material facts relating to the existence of the sewerage line underneath the shop and also misrepresented about the size, condition and location of the shop. It is submitted that this Commission has no jurisdiction to re-assess and re-appreciate the evidence led before the Fora below and cannot substitute its own opinion on the findings of the facts.

3. We have given our thoughtful consideration to the rival contentions.

4. The brief facts of the case are that respondent was allotted a shop No.21, B K Chowk, NIT, Faridabad in an open auction. The shop was advertised to be having an area of 257.8 sq. ft. and auction price was Rs.55 lakhs. However, she had succeeded in the auction and purchased the said shop for Rs. 30,75,000-, which money was duly paid to the petitioner. When she visited the shop, she found the area of shop was 170 sq. ft. instead of Rs.257.8 sq. ft. and that there was a sewerage line underneath the shop, which could cause collapse of shop at any time. The electricity bill of Rs.20,026- was also found outstanding against the shop in the name of one Sh. Vikas Sharma. She also came to know that construction of the shop was declared illegal by the Consumer Forum, Faridabad vide its decision dated 15.02.2006 in complaint titled Vikas Sharma vs MCF and that all these facts were not brought to her notice. The plea taken by the petitioner before the District Forum was that the shop was sold in an auction to the petitioner as per the bid procedure of the Government and that she was not entitled for any refund. After recording the evidence, the District Forum reached to the following conclusion

“7. There is no dispute that the shop in question was earlier sold in open auction in favour of one Vikas Sharma, who filed a complaint before Consumer Forum, Faridabad, levelling allegation of deception, fraud and concealment of actual position of the shop against the respondent corporation. That complaint was decided against the corporation. But concealing the factum of previous litigation, the respondent corporation again put the shop for sale in open auction. Since auction proceedings took place in the office of MCF, the complainant came to know of the actual position of the shop only when she opened the shutter of the shop and found electricity bill in the name of Vikas Sharma lying therein. The respondent corporation, thus, adopted an unfair trade practice by putting the shop for sale in open auction without disclosing the factum of earlier litigation and the d