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2026 Supreme(Online)(SCDRC) 6527

STATE CONSUMER DISPUTES REDRESSAL COMMISSION WEST BENGAL
Bibhas Ranjan De, President, Mridula Roy, Member
PRANAB KUMAR SINGH – Appellant
Versus
PANCHAWATI HOLIDAY RESORTS LIMITED – Respondent
FIRST APPEAL NO. SC/19/A/249/2024 | SC/19/IA/597/2026



Advocates:
For the Appellants/Petitioners: Samit Basu, Alok Kumar Laha
For the Respondents: Shyamal Kanti Banerjee

A sale deed executed without actual consideration and without a credit clause is a sham transaction, void ab initio, and passes no title; furthermore, consumer complaints must be filed within the statutory limitation period prescribed by the Consumer Protection Act, 2019.

Headnote:(A) Sham Transaction - Sale Deed - Absence of consideration - A registered sale deed that falsely states payment was made, where no money actually changed hands and no credit clause exists, is a sham transaction and void ab initio, passing no title. (Para 9, 10)

(B) Limitation - Consumer Protection Act, 2019 - Filing of complaint - A consumer complaint filed significantly after the cause of action without cogent reason for delay is barred by the statutory limitation period. (Para 2, 9)

Issues: Whether the consumer complaint was barred by limitation and whether the sale deed executed without actual consideration constitutes a sham transaction.

Table of Content
1. background of the dispute and initial dismissal by the district commission based on limitation. (Para 1 , 2 , 3 , 4)
2. rival contentions regarding the payment of consideration and delivery of possession. (Para 5 , 6 , 7)
3. determination of a sham transaction due to lack of consideration and the application of statutory limitation. (Para 8 , 9 , 10)
4. final dismissal of the appeal as it is devoid of merit. (Para 11 , 12 , 13 , 14 , 15 , 16)

ORDER

HON'BLE MR. JUSTICE BIBHAS RANJAN DE, PRESIDENT

1. Prefaced as an appeal challenging the final order and judgment dated 20.08.2024 passed in connection with CC/160 of 2024 this appeal calls into question the adjudication rendered by the Ld. District Consumer Disputes Redressal Commission, Howrah (hereinafter referred to as Jurisdictional DCDRC). Thereunder, a definitive command was issued dismissing the Consumer Complaint filed by the complainant/appellant herein, at the time of admission.

2. Prior to embarking upon an evaluation of the substantive merits, it is fitting to set forth, in its pristine form, the very decree that stands impugned within the halls of this appeal :

“Dated 20 Aug 2024

Order No.2

Today is fixed for admission hearing. Complainant is found present and ready with Ld. Lawyer. Heard Ld. Advocate for the complainant side. Considered submission. Perused the complaint petition and examine the documents which have been filed by the complainant.

After going through the materials of the case record it is revealed that Agreement for Sale of a land was executed in the year 2004 and the said land is registered in the year 2014 after the lapse of 10 years. It is also revealed that the complainant has approached before this District Commission in the month of August, 2024 for passing direction upon the O.ps. to handover possession with duplex building and compensation.

There is no cogent document of the complainant to show the reason of delayed filing of this case.

In course of hearing one unreported decision of Hon’ble National Commission passed in Dim Enclave & Anr Vs. Naresh Batham has been filed. After most respectful reading of the said decision it appears that the said case laws is in respect of the Act of 1986 but this case has been filed according to the Act of 2019 and the said case laws is not relevant to this case.

All these factors are clearly reflecting that this case is barred by limitation. So, this case is not admitted. Thus, this case is dismissed. No order is passed as to cost.”

BACKGROUND

3. Complainant entered into an agreement for sale with the Opposite Parties on 11.05.2004 in respect of two storied duplex unit on a piece and parcel of land measuring 02 Cottahs mentioned in the schedule to the complaint. A registered Deed of Conveyance in respect of land was executed in lieu of Rs.1,20,000/- and rest amount of Rs.15,80,000/- was to be paid for construction of duplex.

4. According to complainant, he took loan from Standard Chattered Bank and all balance amount was paid to the respondents. It is alleged that till date the possession of the duplex has not been handed over to the complainant who then sent a letter dated 05.07.2024 to the respondent M/s. Panchabati Holiday Resort Ltd. for delivery of possession of the duplex.

ARGUMENT

5. Mr. Alok Kumar Laha, Ld. Counsel appearing on behalf of the Appellant/complainant herein has submitted that there is no dispute regarding execution of agreement for sale in respect of a piece of land measuring 02 Cottahs more or less and also construction of a duplex thereon at a total consideration amount of Rs.17,21,800/-. It is alleged that a deed of conveyance with respect to land has already been executed on payment of Rs.1,20,000/- and balance amount was paid after receiving loan from the Standard Chartered Bank. In spite of getting notice dated 05.07.2024, possession of duplex was not delivered in favour of the complainant.

6. In support of his contention, Mr. Laha relied on a case of Meerut Development Auth

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