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NATIONAL CONSUMER DISPUTES
REDRESSAL COMMISSION, NEW DELHI
Honble Mr. Justice V. Balakrishna Eradi, President;
Mr. Justice S.S. Chadha, Dr. (Mrs.) R. Thamarajakshi &
Mr. S.P. Bagla, Members
BRIG. K.G. KUTHIALA—Appellant
versus
ARMY WELFARE HOUSING ORGANISATION—Respondent
First Appeal No. 363 of 1994—Decided on 26.2.1996

Advocates:
Counsel for the Parties :
For the Appellant : In person.
For the Respondent: None.

Headnote:Consumer Protection Act, 1986 Section 2(1)(o) - Complainant member of Army Welfare Housing Organisation allotted a flat constructed by organisation - Flat had structural defects - Claim for compensation - State Commission dismissed complaint in limini holding it had no jurisdiction against organisation Members who were allotted flats were to pay for each & every service - Rules governing Organisation showing that it was carrying on systematic activity of construction of flats for allotment to its members against consideration - It falls within the ambit of scope of definition of service - Impugned order is liable to be set aside. (Para 3 & 4)

       Result: Appeal allowed. Matter remanded.

       

ORDER

Mr. Justice S.S. Chadha, Member—This first appeal is directed against the order dated 19.4.1994 of the Delhi State Commission, dismissing the complaint in limini following its earlier decision in Lt, Col. B.L. Gupta v. M.D., A.W.H.O., III (1992) CPJ 70, holding that the State Commission has no jurisdiction to entertain the complaint against Army Welfare Housing Organisation.

2. The case of the complainant is that he is a member and allottee of a flat constructed by the Army Welfare Housing Organisation (for short called AWHO) which is registered under the Societies Registration Act, 1860, which acquire land, develops it and construct houses/flats for allotment to its members. The member allottees of houses/ flats fully pay for the services rendered by the Army Welfare Housing Organisation. According to the complaint, the flat allotted to the complainant had a major structural defects in the form of through crack in the roof slab which is getting widened and extended to the walls of the flat with the passage of time. Since the defect is structural in nature numerous attempts by Army Welfare Housing Organisation to repair the same by surface repairs have failed to remove the defect and thus the complainant has suffered extensively. It is further alleged that in October, 1993 Army Welfare Housing Organisation had asked the complainant to treat the matter closed implying thereby to disown the responsibility to effect the repairs to the defective construction and to provide relief to the complainant. The complainant filed complaint being No. C-47/94 before the Delhi State Commission which has been dismissed in limini by the impugned order.

3. It has been brought to our notice that the members of Army Welfare Housing Organisation who are allotted plot/house/flat fully pay for each and every service rendered to them. The rules and regulations framed and annexed with their application form for registration of membership of Society show the liability of service charges to be recovered from members as certain percentage charge from each project wise liability falls on me members. Rule 5A inter alia provides that some retired servicemen/civilian may be employed on the approval of the Adjutant General at prescribed conditions of service at scales already existing for such employees of Adjutant General Branch. Their expenses are paid from the funds which are raised during the course of the business of the organisation. Each and every employee of Army Welfare Housing Organisation are thus paid their salaries and other perks from the funds of Army Welfare Housing Organisation including the Army Officers working with Army Welfare Housing Organisation which in turn are raised by recoveries from the members. The employees of Army Welfare Housing Organisation enjoy the benefits of 8.33% of contributory Provident Fund, benefit of interest on unlimited voluntary contribution to Provident Fund over 8.33%, one month pay as medical allowance per year, L.T.C. benefits, house rent allowance, dearness allowance and several other benefits of similar nature and all these benefits are paid from the funds raised from contributions from members of Army Welfare Housing Organisation. There are many activities of Army Welfare Housing Organisation generating profits. Army Welfare Housing Organisation collects non-refundable fee from the members, collects transfer charges at the rate of 2% of the cost of flat/house for mutual interchange of flats/houses between the members which has lately been reduced, charges higher cost for same plots/flats from civil allottees, offers consultancy services on payment to other agencies Authorities, undertakes construction projects on behalf of other agencies and organisation. It would thus be seen from the facts brought to our notice that Army Welfare Housing Organisation is carrying on systematic activity of construction of houses/flats for allotment to its members against consideration. Whether Army Welfare Housing Organi








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