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2022 Supreme(Online)(NCDRC) 494

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
R.K. AGRAWAL, PRESIDENT, S.M. KANTIKAR, MEMBER
M/S. HUBTOWN LTD. & ANR. – Appellant
Versus
VIMAL BHANNUDAS VARAK – Respondent
Revision Petition No. 46 of 2019 | Revision Petition No. 47 of 2019 | Revision Petition No. 48 of 2019 | Revision Petition No. 49 of 2019 | Revision Petition No. 50 of 2019 | Revision Petition No. 51 of 2019 | Revision Petition No. 52 of 2019 | Revision Petition No. 53 of 2019 | Revision Petition No. 54 of 2019 | Revision Petition No. 55 of 2019 | Revision Petition No. 56 of 2019 | Revision Petition No. 57 of 2019 | Revision Petition No. 58 of 2019 | Revision Petition No. 59 of 2019 | Revision Petition No. 60 of 2019 | Revision Petition No. 61 of 2019 | Revision Petition No. 62 of 2019 | Revision Petition No. 63 of 2019 | Revision Petition No. 64 of 2019 | Revision Petition No. 65 of 2019 | Revision Petition No. 66 of 2019 | Revision Petition No. 67 of 2019 | Revision Petition No. 68 of 2019 | Revision Petition No. 69 of 2019 | Revision Petition No. 70 of 2019 | Revision Petition No. 71 of 2019 | Revision Petition No. 72 of 2019 | Revision Petition No. 73 of 2019 | Revision Petition No. 74 of 2019 | Revision Petition No. 75 of 2019 | Revision Petition No. 76 of 2019



Advocates:
For the Appellants/Petitioners: Mr. Ali Murtaza, Mr. Bhaskar Nayak

The court affirmed that Slum Dwellers qualify as consumers under the Consumer Protection Act, enabling jurisdiction of the Consumer Forum over disputes regarding rehabilitation flats promised under a Slum Rehabilitation Agreement.

Headnote:(A) Consumer Protection Act, 1986 - Section 2(1)(d) - Jurisdiction of Consumer Fora - Petitioner/o Opposite Party challenged the rejection of their preliminary objections regarding the complainants' status as consumers and the jurisdiction of the Consumer Forum given the Slum Rehabilitation Scheme. The District Forum ordered compensation of ₹3,00,000/- each to complainants for delay in providing permanent flats, upheld by the State Commission. The absence of privity of contract does not bar consumer complaints. (Paras 9-24)

(B) The court affirmed that Slum Dwellers, having vacated their premises for promised housing, qualify as consumers under the Act, thus affirming the Consumer Forum's jurisdiction. (Paras 14-20)

Facts of the case:
A batch of Revision Petitions arose against a common order for failing to deliver rehabilitation flats under a Slum Rehabilitation Agreement, with the Petitioners contending that the complaints were barred by res-judicata and lack of consumer status.

Findings of Court:
The Consumer Fora confirmed that the complainants, who vacated premises for promised alternative housing, had valid claims as consumers.

Issues: Whether Slum Dwellers constitute consumers under the Act and if the Consumer Forum has jurisdiction over the complaints in light of the Slum Rehabilitation Act.

Ratio Decidendi: The court determined that the complainants were consumers as they provided possession of their premises in exchange for alternative housing, with the Developer failing to fulfill contractual obligations.

Result: Revision Petitions dismissed.

Table of Content
1. overview of the case and involved parties. (Para 1)
2. court’s analysis of consumer status under the act. (Para 10 , 14)
3. judicial reliance on previous cases and interpretation of consumer rights. (Para 12 , 16 , 18 , 19)
4. final dismissal of the revision petitions. (Para 20 , 25)

ORDER

1. The present batch of the Revision Petitions under Section 21 (b) of the Consumer Protection Act, 1986 (for short “the Act”), has been filed by the Petitioners/Opposite Parties in the Complaint before the District Forum, assailing the Common Order dated 12.10.2018, passed by the State Consumer Disputes Redressal Commission, Maharashtra, Mumbai (for short “the State Commission”) in First Appeal Nos. A/15/1001 to A/15/1031. By the impugned Order, the State Commission has dismissed all the First Appeals preferred by the Petitioners/Opposite Parties against the Common Order dated 30.04.2015 passed by the Consumer Grievances Redressal Forum, Mumbai Sub-Urban District (for short, “the District Forum”) in Complaint Nos. 08/2009 to 38/2009 and upheld Order of the District Forum. By the said Order, the District Forum while partly allowing the Complaints filed by the Complainants, has directed the Petitioners/Opposite Parties to pay a compensation of ₹3,00,000/- to each of the Complainants for mental torture and harassment within a period of 30 days from the receipt of the copy of the Order failing which the amount was to carry interest @18% p.a. from 07.01.2007 till actual payment. Besides, Petitioners were also directed to pay a sum of ₹10,000/- to each of the Complainants for cost of litigation.

02. Since all the Revision Petitions have arisen from a Common Order passed by the State Commission, we dispose of the same with this Common Order.

03. Succinctly put, the material facts giving rise to the present Revision Petitions are that the Complainants were residing at Rukminibai Chawl, Room No. 60, Saiwadi, Teligalli, Andheri (East), Mumbai situated on the land City Survey No. 428, 429 and 430, Revenue Gundavali, Tehsil Andhri, Mumbai Suburban District. Under the Slum Rehabilitation Scheme, the Government of Maharashtra has declared the said land as Slum and gave a right to the Hut Holders/Slum Dwellers to appoint the Developer for development of the said Slum. The Petitioners/Opposite Parties promised to the Respondents/Complainants and other Hut Holders to give a permanent accommodation in lieu of their premises in Slum Rehabilitation Scheme and the Respondents/Complainants accordingly accepted the said offer. Necessary approval in this regard was obtained from Saiwadi Slum Rehabilitation Authority by the Petitioners. An Agreement dated 26.12.1994 (for short, the “Agreement”) was executed between the parties, according to which the Petitioners were allowed to construct Free Sale Buildings along with the Rehabilitation Buildings for rehabilitation of the Slum Dwellers including Complainants. In terms of the Agreement and the guidelines of the Slum Rehabilitation Scheme, the Petitioners were under an obligation to give permanent alternative Flats to the Complainants and other Hut Holders within a period of 18 to 24 months from the date of execution of the Agreement. On 19.05.2005, the Respondents/ Complainants and other Hut Holders received a notice from the Petitioners to vacate their huts and hence they vacated the land in the month of May, 2005 and shifted to a Transit Camp. However, since possession could not be handed over within the stipulated time, after protests from the Respondents, the Petitioners in writing on 02.04.2007, promised to the Complainants to hand over the possession within next 15 months. But still the Petitioners failed to keep their promise and possession could not be handed over to the Respondents. A notice dated 22.08.2008 was also served upon the Petitioners asking them to hand over the possession of the alternative Flats. Vide reply dated 16.09.2008, the Petitioners denied to having committed to give the po

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