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2022 Supreme(Online)(NCDRC) 497

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
MR. R.K. AGRAWAL, PRESIDENT, DR. 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 Petitioners: Mr. Ali Murtaza, Mr. Bhaskar Nayak
For the Respondent:

Vacating premises under Slum Rehabilitation Scheme constitutes adequate consideration, qualifying residents as consumers under the Consumer Protection Act, despite no monetary payment.

Headnote:(A) Consumer Protection Act, 1986 - Section 21(b) - Slum Rehabilitation Scheme - Common Order dated 12.10.2018 affirmed - Appeals filed by the Petitioners against District Forum's compensation award of ₹3,00,000/- to each Complainant for mental torture and harassment upheld. (Para 26)

(B) Jurisdictional Issues - Deficiency in service established; vacation of hut would qualify respondents as consumers under the Act, despite lack of monetary consideration - No jurisdictional bar under Section 42 of Maharashtra Slum Act for Consumer Forum to entertain such complaints. (Paras 6, 18, 20)

(C) Delay in rehabilitation - Petitioners failed to deliver permanent alternative flats to hut holders within the stipulated time frame as per agreement resulting in mental and financial distress to complainants. (Paras 8, 24)

Facts of the case:
Complainants vacated their premises for development under the Slum Rehabilitation Scheme, expecting permanent flats according to a 1994 agreement, but experienced significant delays in provision, leading to complaints.

Findings of Court:
Orders from the District Forum and State Commission were justified in holding the Petitioner accountable for deficient service and confirming consumer rights despite the absence of immediate monetary compensation.

Issues: Main issues included the definition of 'consumer' in the context of slum rehabilitation, jurisdiction of Consumer Fora, and the delay in providing alternative accommodation.

Ratio Decidendi: The court clarified that vacating their homes did constitute adequate consideration under the consumer protection framework, and established the applicability of consumer rights in rehabilitation schemes.

Result: Revision Petitions dismissed.

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 possession within 18 months from the date of execution of the Agreement. It was alleged by the Complainants in the Complaints that although the Hut Holders were promised to be given Permanent Alternative Flats admeasuring 225 sq. ft. free of costs in exchange of their residing house under the Slum Re

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