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2022 Supreme(Online)(NCDRC) 499

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 Appellants/Petitioners: Mr. Ali Murtaza, Mr. Bhaskar Nayak

Developers under Slum Rehabilitation Scheme are considered service providers under the Consumer Protection Act, and their failure to deliver promised housing qualifies as deficient service, entitling claimants to compensation.

Headnote:(A) Consumer Protection Act, 1986 - Section 2(1)(d) - Jurisdiction over Consumer Complaints - Petitioners, as developers under the Slum Rehabilitation Scheme, failed to provide promised permanent alternative flats to slum dwellers, leading to claims for compensation for mental torture and harassment. (Paras 1, 2, 6, 9, 25)

(B) Service Provider Obligations - Developers held accountable as service providers under the Act for not fulfilling contractual obligations to slum dwellers, establishing a consumer relationship despite non-payment of monetary consideration. (Paras 8, 21)

(C) Jurisdictional Issues - The Consumer Forum retains jurisdiction despite the Maharashtra Slum Act's provisions, as slum dwellers are defined as consumers under the Act. (Paras 12, 18)

Facts of the case:
The dispute arises from the failure of developers to provide alternative housing to slum dwellers as per their agreement, resulting in prolonged residence in transit camps, mental agony, and need for compensation.

Findings of Court:
The court upheld the Consumer Fora's conclusions that developers were deficient in service and liable for compensation due to the delay in providing permanent housing as per the agreement.

Issues: The court addressed whether slum dwellers are consumers under the Act and the scope of jurisdiction of the Consumer Forums concerning the Maharashtra Slum Act.

Ratio Decidendi: The court emphasized that the absence of monetary payment does not negate the status of slum dwellers as consumers, and Consumer Forums can adjudicate disputes arising from service deficiencies in compliance with the Act.

Result: Revision Petitions dismissed.

Table of Content
1. identification of parties and case context. (Para 1)
2. final ruling and dismissal of the petitions. (Para 10 , 25)
3. consumer classification and jurisdiction ruling. (Para 11 , 14 , 18 , 20)

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 t

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