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2022 Supreme(Online)(NCDRC) 500

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
National Commission, CJ
M/S. HUBTOWN LTD. & ANR. – Appellant
Versus
VIMAL BHANNUDAS VARAK – Respondent
Revision Petitions | Consumer Protection Act, 1986



Advocates:
For the Appellants/Petitioners:

The court affirmed that slum dwellers can be considered consumers under the Consumer Protection Act, 1986, despite not providing monetary compensation, as the rehabilitation agreement constitutes a service contract.

Headnote:(A) Consumer Protection Act, 1986 - Section 2(1)(d) - Revision petitions challenging the common order of the State Commission that upheld the district forum's decision directing payment of ₹3,00,000/- per complainant for mental harassment - The petitioners failed to provide permanent alternative accommodation as per an agreement dated 26.12.1994 within the stipulated time despite receiving possession of land and funds from the government for development. The District Forum determined that the complainants were consumers under the Act and that the petitions against them were dismissed due to lack of merit. (Para 24)

(B) Jurisdiction - The consumer forum retains jurisdiction over disputes arising from the slum rehabilitation scheme and does not conflict with the Maharashtra Slum Act. (Para 18)

(C) Deficiency of service - The petitioners exhibited a failure to deliver on obligations assumed under the agreement, resulting in significant mental distress to the complainants due to prolonged displacement. (Paras 6 and 24)

Facts of the case:
The complainants vacated their premises under the Slum Rehabilitation Scheme in May 2005 with the expectation of receiving permanent housing within 18 months as per the agreement. They later filed complaints when this promise was not fulfilled resulting in mental distress.

Findings of Court:
The District Forum upheld the complaints stating petitioners were deficient in service for not delivering housing as agreed. Both the District and State Commissions affirmed the complaint on the insufficient delivery of housing.

Issues: Whether the complainants are considered consumers under the Act and whether the jurisdiction of the consumer forum is ousted by any other statutory provisions.

Ratio Decidendi: The court held that the contractual nature of the arrangement qualified the complainants as consumers, despite not providing monetary payment, as the arrangement served residents’ needs under the Slum Rehabilitation Scheme. Moreover, the provisions of the Consumer Protection Act are a supplementary remedy.

Result: Revision petitions dismissed.

Table of Content
1. dismissal of petitions by the court. (Para 1)
2. ratio on consumer protection applicability. (Para 10 , 16 , 18 , 19 , 22 , 23)
3. arguments regarding consumer definition and jurisdiction. (Para 12)
4. court's observations on service deficiency. (Para 14 , 24)

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 mont

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