NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
A. P. Sahi, President and Dr. Inder Jit Singh, Member
Lakkam Eswar Reddy – Petitioner
versus
Consumer Guidance Society Rep. K.P. Ravindran and Anr. – Respondents
Revision Petition No.3270 of 2011, Revision Petition No.3271 of 2011 and Revision Petition No.3272 of 2011
Decided on 24.10.2024
Consumer Protection Act, 1986 – Section 21(b) – Construction of flat – Deficiencies such as defects, reduced plinth area, not providing car parking, demanding Rs.50,000/- as compensation – Not justified – From perusal of report of Local Commissioner, & other facts & circumstances of case, it is clear that allegations of deficient area & issues relating to parking space are correct – State Commission correctly gave its findings on deficiency in area & issues pertaining to parking in all three cases – State Commission has given well-reasoned orders & NC agree with its observations & findings – There is no illegality or jurisdictional error in the orders of State Commission & same is upheld. (Paras 9 and 12)
Result: RPS dismissed.
ORDER
Dr. Inder Jit Singh, Member.—The present Revision Petitions (RPs) has been filed by the Petitioners against Respondents as detailed above, under section 21 (b) of Consumer Protection Act 1986, against the order dated 08.07.2011 of the State Consumer Disputes Redressal Commission, Andhra Pradesh (hereinafter referred to as the ‘State Commission’), in First Appeal (FA) No. 1629, 1630 and 1631 of 2008 in which order dated 30.10.2008 of District Consumer Disputes Redressal Forum, Vijayawada (hereinafter referred to as District Forum) in Consumer Complaint (CC) No. 01, 02 and 97 of 2008 was challenged, inter alia praying for setting aside the order dated 08.07.2011 of the State Commission.
2. While the Revision Petitioner (hereinafter also referred to as Opposite Party No. 1) was Respondent No. 1 before the State Commission and Opposite Party-1 before the District Forum and the Respondent No. 1 (hereinafter also referred to as Complainant) was Appellant before the State Commission and Complainant before the District Forum. Respondent No. 2 (hereinafter also referred to as Opposite Party No. 2) was Respondent No. 2 before the State Commission and Opposite Party No. 2 before the District Forum.
3. Notice was issued to the Respondent(s) on 30.11.2011 in all the Petitions. Parties filed Written Arguments on 27.08.2021 (Petitioner) and 06.11.2023 (Respondent No. 1) respectively. As the issues involved in all the three RPs are similar and challenge is to common order dated 08.07.2011 of the State Commission, they are taken up together. However, RP/3270/2011 is taken as lead case (FA/1629/2008 before the State Commission).
4. Brief facts of the case in RP/3270/2011, as presented by the Petitioner and as emerged from the RP, Order of the State Commission, Order of the District Commission and other case records are that: -
(i) On 21.11.2005, Respondent No. 1/Complainant entered into a construction agreement with Petitioner/Opposite Party No. 1, a builder operating under the name Vijayalakshmi Towers-II. After thoroughly reviewing and agreeing to the construction terms, conditions and amenities detailed in the agreement, Respondent No. 1 signed the agreement for Flat No. GF-8 in Vijayalakshmi Towers-II.
(ii) Respondent No. 1 visited the construction site multiple times during construction, as per clause 7 of the agreement, and was satisfied with the progress and quality of work. On 15.12.2005, a sale deed was executed for Flat No. GF-8, which included a plinth area of 780 sq. ft. including scooter parking. Respondent No. 1 took possession of the flat following the petitioner’s completion and handing over letter and has been residing there since. An appreciation letter from the Vijayalakshmi Towers-II Residents Welfare Association, dated 09.08.2007, shows satisfaction with the construction, amenities and quality of work done.
(iii) However, on 10.12.2007, Respondent No. 1 issued a legal notice alleging deficiencies such as defects, reduced plinth area, and not providing car parking, demanding Rs.50,000/- as compensation. The petitioner responded on 18.12.2007, contesting these claims. Dissatisfied, Respondent No.1 filed a complaint on 20.12.2007, with the District Consumer Forum-II seeking Rs.3,25,075/- in compensation for alleged service shortcomings.
5. Vide Order dated 30.10.2008, in the CC no. 01 of 2008 the District Commission ordered that the complaint lacks any merits and dismissed the complaint.
6. Aggrieved by the said Order dated 30.10.2008 of District Commission, Complainant/R-1 appealed in State Commission and the State Commission vide order dated 08.07.2011 in FA No. 1629 of 2008 has allowed the appeal and passed the following order:
“In the result this appeal is allowed and order of the District Forum is set aside and consequently the complaint is allowed in part directing opposite parties no. 1 and 2 to pay to the complainant an amount of Rs.65,000/- towards deficit area and Rs.75,000/- as compensation towards non
(1) After taking possession over constructed flats per Supplementary Agreement, Appellants are estopped from challenging its validity.(2) Under Section 24 of Andhra Pradesh Apartments (Promotion of C....
Contractual obligations under the Consumer Protection Act require service providers to fulfill all promised specifications, and failure to do so constitutes deficiency of service.
Basement – The complainants have miserably failed to establish that basement or the parking area are common areas available to them so as to contravene Clause 15 of the agreement.
The court ruled that a consumer society cannot claim compensation for deficiency without clear evidence of service shortfalls and emphasizes obligations under the Consumer Protection Act and MOFA.
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