Consumer Forum

By Anju D. Aggarwal.

Posted on 15 Jan 2002
 

1. Important housing construction judgment.

A decision of the Supreme Court (delivered on 5^th November 1993) is a landmark judgment in the field of housing construction .The case is Lucknow development Authority v/s M.K.Gupta . says the learned judge of the Supreme Court that the Consumer Protection Act.1986 is a “Beneficiary Legislation.” The learned judge has dealt extensively with all the aspects that can arise in housing construction cases and has clarified that even immovable property does not fall outside the purview of the consumer Protection Act . The following five important points emerge from this judgment which are reproduced below for the guidance of the readers:-

1.“A Govt. or semi Government body or a local authority is as much amendable to the Act as any other private body rendering similar service.”2. The jurisdiction oft he FORA cannot be ousted because even though it was service . It related to immovable property .3. Housing construction or building activity carried on by a private or statutory body is “service” within the meaning of the Act. 4. A public functionary if he acts malaciously or oppressively and the exercise of power results in harassment and agony then it is not an exercise of power but its abuse. 5. The FORE can direct the department to pay the compensation to the complainant immediately with further directions to the recover the amount from those responsible behaviour”.

2.CPA Amendment :- The Consumer Protection Act 1986 was amended by means of an Ordinance with effect from 18^th June 1993 . Before the said amendment, where compensation etc. claimed was above rupees one lakh but below rupees five lakhs , cases were to be filed in the State Commission concerned. Some such complaints were pending for disposal on 18^th June 1993 in the State Commission .After the amendment, the district forum has been given jurisdiction over complaints upto an amount of rupees five lakhs . The question that arises is whether complaints filed before the State Commission as per monetary jurisdiction prevalent at the time of filing the complaint will be disposed off by the State Commission or by the District Forum.

The above point is of considerable importance to the flatowners because generally the complaints in their cases are between rupees one lakh and rupees five lakhs .

The doubts in respect of these points has recently been cleared by the National Consumer Disputes Redressal Commission by its order delivered on 21^st December 1993 . It has come to the conclusion that the State Commission is the appropriate quasi-judicial body to hear cases which has been filed before 18^th June 1993 and which were pending for disposal in the State Commission on the said day. These to the District Forum in view of the above decision of the National Commission dated 21^st December 1993.

3. Employees of co-operative society :- It is clarified for the information of the persons concerned that the employees of a co-operative society - in fact any employee - cannot file a complaint under the Consumer Protection Act , 1986 in respect of his service matters or payment of leave , salary travelling allowance or non-payment of Provident Fund etc. connected with it. This is in view of the decision of the highest consumer court namely the National Commission vide its order dated 14^th June 1991 .

4. CPA and co-operative society :- As a result of the decision by the National Commission on 10^th December 1992 in the case of Panchavati Co-operative Housing Society Ltd., an impression has been created that all matters connected with the working of the Co-Operative Society including even challenging decisions of the managing committee of the co-operative society can be taken up under the consumer Protection Act . This impression is not correct .The Maharashtra Co-operative Societies Act has been enacted to deal with the grievances of co-operative society .Even the National Commission in para 11 of its order in Panchavati case has drawn the attention to this distinction .

“Truly speaking it is not a case of consumer dispute under the Consumer Protection Act. The right forum for a member of a Co-operative Society to agitate his grievances is the Co-operative Court under the Maharashtra Co-operative Societies Act.”

Accordingly for complaints of day-to-day working of Co-operative societies, the grievances have to be agitated in the co-operative courts set -up under the Maharashtra Co-operative Society Act and not under the provisions of the Consumer Protection Act . This should be noted by all concerned to avoid unnecessary work.

Further queries can be clarified from the writer at telephone : 8056188 on Mondays and Thursdays between 4.30 p.m. and 5.30 p.m.