Skip to main content

Flat owner without legal title has consumer rights

In a significant judgment, the South Mumbai Consumer Forum has held that a flat owner legally occupying the flat would be a consumer, even if his title to the flat might be in dispute before a competent court.

Thurlow owned a flat in a co-operative society. Appuswami was residing with him. In 1976, Appuswami got married in the same flat, and his wife started residing in the same flat. They had three children, born and brought up in the same flat.

After Thurlow expired in 2004, Appuswami approached the High Court for inheritance to Thurlow's estate but expired while the matter was pending. His wife and children were brought on record. Subsequently, the society intervened, contending Appuswami did not have any right to the flat and it should be handed over to the Society.

The Appuswami family continued to reside in the flat, and even pay the society's outgoings and maintenance charges. Later, the society stopped collecting maintenance charges from all members, as it earned enough income from a cell phone tower erected on its terrace.

When the Appuswami family wanted to renovate their flat, the society refused to grant permission and obstructed work. The Society stated it would allow the renovation only if suitable orders were obtained from the court.

The Appuswamis filed a consumer complaint. They claimed they were beneficiaries of the services availed of by the deceased Thurlow, and would be considered consumers. Even though the issue of inheritance was pending, the High Court had permitted them to use and occupy till the issue was decided. So they had every right to keep their flat in proper habitable condition, and renovation would not cause any harm or prejudice the society's claim.

The society, on the other hand, claimed a consumer complaint was not maintainable as the Appuswamis had not been recognised as members. The society also argued that no case could be filed before first giving a notice under Section 164 of the Maharashtra Co-operative Societies Act.

The Consumer Forum observed Section 164 was not applicable to consumer complaints. Beside, the Appuswami family had clearly put the society to notice by writing for permission to carry out repairs, and stating the society would be liable if permission was not granted. The Forum observed as maintenance charges had been collected, the consumer complaint was maintainable. The issue of inheritance before the High Court would not debar the filing of a consumer complaint for repairs.

The Appuswami family had filed an architect's report setting out the scope of the repair work. Accepting this report, the Forum directed the society to grant permission to carry out the repairs. By its order of December 9, 2014, delivered by Presiding Officer S M Ratnakar for the Bench, along with S G Chabukawar, the Forum held that there was deficiency in service, and awarded Rs 10,000 for the mental harassment and Rs 5,000 as costs.

Article referred: http://www.business-standard.com/article/pf/flat-owner-without-legal-title-has-consumer-rights-115010400716_1.html

Comments

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...

Vanishing promoters and languishing shareholders

Over Rs 60,000 crore of shareholders’ wealth is stuck in 1,450 companies suspended by the stock exchanges. More importantly, near 100 per cent pledging of promoter holding appears to be common in many of these companies. This, almost rules out any chance of the companies bouncing back. The suspension is for non-compliance of the listing norms. Vanishing Companies - Definition As per the definition stipulated by SEBI, any listed company, which raised moneythrough initial public offer and, thereafter, stopped operations, did not file returnseither with the RoC or SEBI and did not exist on the registered premises wastermed as vanishing.There are provisions under Companies Act under which companies are termedvanishing companies on satisfying certain conditions. it is provided a companywould be deemed to be a vanishing company, if it satisfies all the conditions given below : a) Failed to file returns with Registrar of Companies (ROC) for a period of two years; b) Failed to fil...

Property can be sold on power of attorney - Delhi High Court

As reported in the Hindusthan Times on 5th May:-  http://www.hindustantimes.com/India-news/NewDelhi/Property-can-be-sold-on-power-of-attorney/Article1-1054964.aspx In a judgment that will benefit lakhs of Delhi residents living in co-operative housing societies and DDA flats, the Delhi High Court has quashed a Delhi government circular banning property sale in the Capital through general power of attorney (GPA). The court found that the directions in the circular, issued by the revenue department on April 27 last year, were contrary to the Supreme Court judgment dated October 11, 2011. The HC order will increase the number of saleable properties in Delhi and could bring down the value of freehold properties. According to realty watchers, on an average, around 20% of properties are registered through GPA transfers — a common way of selling leasehold properties and those that don’t have a clear title. The judgment came on a petition filed by a company, Pace Developers and ...