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2022 Supreme(Online)(NCDRC) 501

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

Complainants under the Slum Rehabilitation Scheme qualify as 'consumers' despite non-monetary consideration; their grievances fall within the jurisdiction of Consumer Fora.

Headnote:(A) Consumer Protection Act, 1986 - Section 2(1)(d) and Section 21(b) - Slum Rehabilitation Scheme - Complainants alleged failure to receive promised permanent housing from developer leading to mental torture - Consumer Forum ruled in favor of Complainants awarding ₹3,00,000 each for distress, subsequently upheld by the State Commission - Developers argued that Complainants are not consumers as no monetary consideration was exchanged for services, citing lack of jurisdiction under Section 42 of Maharashtra Slum Act, 1971 - It was determined that vacation of slum land constituted consideration and the Developers’ failure to fulfill agreements constituted deficiency of service. (Paras 1-25)

(B) Fundamental Rights - Consumer Rights - The court clarified the definition of 'consumer' and the validity of claims under the Consumer Protection Act in relation to Slum Rehabilitation Scheme, emphasizing that remedies under the Act are available to beneficiaries regardless of privity of contract. (Paras 21-23)

(C) Jurisdiction of Consumer Fora - The court upheld the jurisdiction of Consumer Fora to address grievances within the Slum Rehabilitation Scheme, affirming that the bar of jurisdiction under the Maharashtra Slum Act does not preclude claims under the Consumer Protection Act.

Table of Content
1. background and facts of the case (Para 1)
2. state commission's confirmation of district forum (Para 10)
3. judgment dismissal and jurisdiction adherence (Para 11 , 25)
4. petitioner's claims of non-consumer status (Para 12 , 13)
5. rejection of provisional objections (Para 14)
6. jurisdictional clarity on consumer rights (Para 15 , 16)
7. affirmation of consumers' entitlement (Para 18)
8. final assertion of petitioners' deficiency (Para 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 Petitio

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