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2023 Supreme(Online)(SC) 2126

M. M. Sundresh, J
Alpha G184 Owners Association – Appellant
Versus
Magnum International Trading Company Pvt. Ltd. – Respondent
Civil Appeal No. 4718 of 2022 | Civil Appeal Nos. 329-332 of 2023



Advocates:
For the Appellants/Petitioners: Shri Narendra Hooda
For the Respondents: Shri Debesh Panda

Joint complaints filed by consumers under the Consumer Protection Act are maintainable even when individual interests vary, as long as the grievances are common.

Headnote:(A) Consumer Protection Act, 1986; 68 of 1986 - Consumer Complaint No. 3753 of 2017 - Jurisdiction of the National Commission - Delay in construction of promised flats and non-payment of compensation - Relevant provisions of Consumer Protection Act have to be construed favorably towards consumers - Complaint filed by the association of consumers deemed maintainable as a joint complaint rather than for representative capacity based on similarity of interest - Appeal allowed with directions to the National Commission to hear matters on merits. (Paras 15-36)

(B) Legal standing of consumer associations in filing complaints - The definition of 'complainant' includes numerous consumers with similar grievances making the complaint jointly maintainable without violating legal provisions regarding representation. (Paras 19-22)

(C) The ratios established in previous judgments reaffirmed the eligibility of joint complaints under the Consumer Protection Act even where individuals have distinct contracts. (Paras 20-22)

Table of Content
1. background context on the appellant's formation and complaints filed. (Para 1 , 2)

JUDGEMENT

M. M. Sundresh, J. FACTS 1. The appellant is an association formed by the allottees, registered under Section 6 of the Haryana Registration and Regulation of Societies Act, 2012 (hereinafter referred to as “the HRRS Act”) vide certificate dated 01.11.2017. The respondent herein is a builder tasked with the development of a housing project. Inter alia alleging that the respondent has failed in its obligation to construct and complete Digitally signed by Ashwani Kumar Date: 2023.05.15 16:35:02 IST Reason:

    Signature Not Verified the promised flats within the timeline agreed upon, with its failure to pay compensation for the delay caused at its instance, and questioning the additional demands raised, the appellant approached the National Consumer Disputes Redressal Commission (hereinafter referred to as ‘the National Commission’) by filing a Consumer Complaint No. 3753 of 2017 initially on behalf of 54 allottees, and thereafter, a few others. Accordingly, complaints have been filed in Consumer Complaint No(s). 3751, 3752, 3753 & 3754 of 2017, and 407 of 2018. These complaints are filed by the appellant on behalf of the named allottees.

2. Consequent to the interim order dated 08.01.2018 passed in Consumer Complaint No. 3753 of 2017, pleadings were completed followed by affidavits filed by the appellant along with the individual affidavits of the allottees. At that stage, the respondent filed a writ petition being W.P. (C) of 3221 of 2018 before the High Court of Delhi, which was stayed by this Court vide order dated 20.08.2018 in S.L.P. (C) No(s). 23021-23022 of 2018. 3. Notwithstanding the above, a complaint was filed by the respondent with the District Registrar of Societies, inter alia alleging that the aims and objectives enunciated in the byelaws of the appellant association were not in conformity with the HRRS Act. The District Registrar, Gurugram referred the matter to the State Registrar, Haryana by the order dated 03.10.2018. 4. The State Registrar, Haryana directed the appellant to amend its byelaws within six months indicating that any failure to comply would result in cancellation of the registration granted already. Aggrieved, the appellant filed an appeal before the Registrar General, Haryana. As nothing transpired on ground qua the proceedings before the Registrar General, Haryana and without prejudice to its contentions, the appellant did make an amendment which was duly registered by the District Registrar, Gurugram on 08.11.2019. 5. The complaint was taken up by the National Commission for hearing on 13.11.2019. Having been informed of the order of the State Registrar dated 12.02.2019, the proceedings were adjourned sine die, awaiting the outcome of the appeal before the Registrar General, Haryana.

6. The appellant submitted an application to the Registrar General, Haryana in the pending Appeal No. 320 of 2019 to place on record the amended byelaws while reiterating the request for grant of stay. A writ petition was also filed by appellant being C.W.P. No. 34595 of 2019, wherein the High Court of Punjab & Haryana, at Chandigarh, vide its order dated 27.11.2019 passed an order directing the Registrar General, Haryana to decide the interim applications expeditiously.

7. Before the Registrar General, Haryana the respondent raised a contention placing reliance upon a copy of the notice dated 04.10.2019, by which the Department expressed its intention to cancel the registration. Accordingly, the Registrar General, Haryana passed an order restraining any cancellation of registration.

8. Under the aforesaid factual backdrop, the appellant filed an application before the National Commission to place on record the amended byelaws with the order of stay granted by the Registrar General, Haryana seeking a consequential prayer for the revival of the proceedings. The






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