SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2021 Supreme(Online)(NCDRC) 485

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
MR. JUSTICE RAM SURAT RAM MAURYA, PRESIDING MEMBER
AKHILESH KUMAR NAITHANI & ANR. – Appellant
Versus
M3M INDIA PRIVATE LIMITED – Respondent
CONSUMER CASE NO. 562 OF 2020



Advocates:
For the Appellants/Petitioners: Mr. Aditya Parolia
For the Respondents: Mr. A.R. Takkar

A person purchasing units for commercial purposes does not qualify as a 'consumer' under the Consumer Protection Act, thus limiting maintainability of the complaint.

Headnote:(A) Consumer Protection Act, 1986 - Definition of Consumer (Section 2(1)(d)) - Booking of units for commercial purposes does not qualify as consumer complaint. (Paras 8, 9, 11, 12)

(B) Maintainability - Complainants must provide evidence of usage for self-employment to be classified as consumers. (Paras 10, 12)

Facts of the case:
Complainants booked three commercial units for purposes of livelihood. Builder alleged they were speculating for profit.

Findings of Court:
Court found evidence indicated units were sought for commercial investment rather than personal use.

Issues: Classification of complainants as 'consumers' under the Act.

Ratio Decidendi: Evidence of intent to lease units demonstrated commercial usage; thus, complainants not deemed consumers.

Result: Complaint dismissed as not maintainable.

Table of Content
1. hearing of the complaint through video conferencing. (Para 1 , 2)
2. details of agreements and complainants' claims about units. (Para 3 , 5)
3. final ruling on maintainability of the complaint. (Para 4 , 6)
4. interpretation of 'consumer' status under the act based on evidence. (Para 8 , 9 , 10 , 11 , 12)
ORDER

1. Heard Mr. Aditya Parolia, Advocate, for the complainants and Mr. A.R. Takkar, Advocate, for the opposite party, through video conferencing.

2. Akhilesh Kumar Naithani and Smt. Kusum Naithani (the complainants) have filed this complaint for directing M3M India Private Limited (opposite-party), (hereinafter referred to as the builder) (i) to give physical possession of Unit-1 to the complainants, complete in all respects and in conformity with agreement-1 and execute all necessary and required documents in respect of Unit-1, in favour of the complainants; (ii) to waive off delayed penalty charges imposed on the complainants by the opposite party, at interest rate of 24% per annum with respect to Unit No. 1; (iii) to hand over possession of Unit-2 and Unit-3 to the complainants, complete in all respects and in conformity with agreement-2 and agreement-3 respectively and execute all necessary and required documents in respect of said Unit-2 and Unit-3, in favour of the complainants within a period of 6 months, from the date of filing of this complaint; (iv) to pay interest @ 12% per annum, on the amount deposited by the complainants with the opposite party towards consideration of Unit-2 and Unit-3, with effect from the date of delivery of possession, promised in Agreement-2 and Agreement-3 respectively, till the date of actual possession as per clause (c) of above agreements; (v) to pay compensation of Rs. 10,00,000/- to the complainants, for mental agony and harassment, discomfort and undue hardship caused to the complainants as a result of acts and omission on the part of the opposite party (vi) to pay Rs.1,00,000/- to the complainants as the cost of litigation and (vii) any other relief which the Commission deems fit and proper, in the fact and circumstances of the case, be passed.

3. The facts as stated in the complaint are that the builder was a company, engaged in the business of development and construction of multi-story residential and commercial buildings and selling its unit to the prospective buyers. The builder advertised for construction of commercial complex over the revenue estate of villages Maidawas and Badshahpur, Sector-67, District Gurugram, Haryana, in the name of “M3M Urbana” in 2015. Complainant-2 is an interior designer and was working from home. She was in need to set up her own office for her business venture, for the purposes of earning their livelihood by way of self-employment. Therefore, the complainants booked three units in the project “M3M Urbana” on 30.09.2015 and opted for “Possession Linked Payment Plan”, under which 30% of sale consideration has to be paid within 30 days of booking and 70% within 30 days of the notice of possession. Provisional Allotment letters dated 30.09.2015 were issued to them, the details of which are:- (i) Unit-1- Unit No. SB/R/GL/06/21, Block-6, super area 900.65 sq. ft., total consideration of Rs.1,93,00,168/-, Buyer’s Agreement dated 24.11.2015 (Agreement-1). Promised date of possession-12 months with grace period of 6 months, from the date of agreement. Amount paid was Rs.59,85,622/-; (ii) Unit-2- Unit No. SB/R/GL/07/11, Block-7, super area 905 sq. ft., total consideration of Rs.1,95,26,720/-, Buyer’s Agreement dated 20.01.2016 (Agreement-2). Promised date of possession-24 months with grace period of 6 months, from the date of agreement. Amount paid was Rs.71,45,491/-; and Unit-3- Unit No. SB/R/GL/07/10, Block-7, super area 904.65 sq. ft., total consideration of Rs.1,76,97,696/-, Buyer’s Agreement dated 20.01.2016 (Agreement-3). Promised date of possession-24 months with grace period of 6 months, from the date of agreement. Amount paid was Rs












Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top