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2022 Supreme(Online)(NCDRC) 1203

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
MR. C. VISWANATH, CJ, MR. RAM SURAT RAM MAURYA, J
JMD GARDENS RESIDENTS WELFARE ASSOCIATION – Appellant
Versus
M/s JMD LIMITED – Respondent
CONSUMER CASE NO. 110 OF 2014



Advocates:
For the Appellants/Petitioners: Mr. Siddhartha Jha
For the Respondents: Mr. Arjun Sawhney, Mr. Nikhil Kapoor, Mr. Rohan Bhambri

Consumer associations can file complaints under the Consumer Protection Act if established as voluntary bodies; quality of construction must meet promised standards, and deficiencies must be rectified within stipulated timeframes.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(1)(d) and 24A - Complaint by Residents Welfare Association - Association held to be maintainable despite arguments regarding limitation and lack of consumer status - Structural issues in development leading to a request for comprehensive remedial action are established. (Paras 2, 8, 11, 24)

(B) Rights of Consumers - Definition of 'Consumer' as applicable to voluntary associations, criteria for maintainability examined - Opposite parties ordered to rectify identified deficiencies and refund excess charges, with instructions for compliance within a six-month period. (Paras 7, 20, 22, 25)

(C) Quality of Construction - Findings from inspections confirmed significant structural defects, poor quality workmanship, and failures in promised amenities - Opposite parties directed to address severe deficiencies in construction and maintenance as per architectural evaluation reports. (Paras 12, 13, 14)

Table of Content
1. opposite parties contest consumer status and jurisdiction. (Para 2 , 4 , 14)
2. quality of construction and maintenance fails to meet expectations. (Para 3 , 12 , 20)
3. relief sought for various deficiencies. (Para 8)
4. court's authority to resolve the dispute. (Para 9 , 10 , 11)
5. refund of excess charges and obligations to rectify defects. (Para 15 , 19 , 24)

ORDER

“8. Relief Sought

In the facts and circumstances of the present case, the Complainant respectfully pray that this Hon'ble Commission may be pleased to grant the following reliefs paragraphs.

8.1 With respect to seepage direct the Opposite Party No. 1 to identify the cause of seepage and immediately take steps to rectify this structural defect within two months or in alternative the Opposite Party No. 1 should pay the Complainant Association an amount of Rupees Nine Crores and Fifteen Lakhs for it to take steps to rectify this defect. The Architect in his report has given estimation that this much amount will be required to rectify this defect. A copy of the Architect's report is annexed hereto and marked as Annexure-Q.

8.2 Direct the Opposite Party No l and 2 to pay every Resident the following amounts:

(i) Refund of the contingency deposit fund and extra EDC illegally collected from the Residents, with an interest at the rate of 18% per annum from the date of payment of the contingency deposit fund and EDC by the Residents. The Residents have also claimed compensation towards harassment and refund of higher charges paid towards maintenance and DG sets. The amount due to each Resident is reflected in the given chart which is annexed hereto as Annexure- R.

8.3 Direct the Opposite Party No. 1 to declare the actual carpet area and built-up area to the Residents and refile the Deed of Declaration with the Government in the manner prescribed.

8.4 Direct the Opposite Party No. 1 to pay the following amounts to the Complainant Association:

(i) the amount charged from every Resident in name of security deposit for maintenance services with an interest of 18% from the date when such amount was charged. The principal amount itself is approximately Rupees Five Crores.

(ii) Transfer the sum of Rs.50,000/- charged from every Resident (total approximately Rupees Two Crores Fifty Lakhs) to the Complainant Association which was collected by the Opposite Party No. 1 in name of Club Membership Fee.

8.5 Direct the Opposite Party No. 1 to immediately provide facilities and amenities like amphitheater, community center, school, increase the sanctioned load from DHBVN and install additional DG sets to provide the promised power back up, water harvesting equipments, replace the current poor quality lifts with promised high-speed lifts, fire safety equipments as promised to the Residents at the time of booking of the flats

8.6 Direct the Opposite Party No. i to immediately stop the constructions of new towers on the plot next to the JMD Gardens and demolish the tower constructed opposite L and M Block since it will put further strain on the limited facilities available to the Residents and further alter the Super Area. The Opposite Parties should be restrained from selling the flats in the new towers and proceeds from any flat already sold should be given to the Complainant Association as compensation.

8.7 Direct the Opposite Party No. 1 to immediately remove the construction materials from the JMD Gardens at its own cost and its workers should immediately stop using the elevators for carrying the construction materials.

PRAYER

In the light of above facts and circumstances it is most respectfully prayed that this Hon'ble Commission may be pleased:

ii) To pass such further order or orders as this Hon'ble Commission deem fit and proper for granting complete relief to the Complainant Association.”

2. The Complaint was resisted by the Opposite Parties by filing written statement on the ground that the Complainant Association was not a ‘Consumer’ under section 2 (1) (d) of the Consu

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