Skip to main content

Only registered home buyers' body can file complaint against builders: NCDRC

The NCDRC heard MOULIVAKKAM TRUST HEIGHTS FLATS AFFECTED BUYERS ASSOCIATION vs M/s PRIME SRISTI HOUSING PVT. LTD. & 29 ORS along with cases filed by a host of other litigants and held that only registered residents' welfare associations (RWAs), consumer organisations, cooperative societies or association of flat or plot buyers can file complaints against builders in the commission.

Clearing the ambigbuity regarding the term ‘voluntary consumer association’ in Section-12 of the Consumer Protection Act, presiding member Justice VK Jain in his order on Friday said, "Recognised consumer association means any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956) or any other law for the time being in force."

The commission has also made it clear that a Trust cannot file a case for one or more consumers or on behalf of a group.

It said the sole or one of the main objectives of the body should be to pursue, propagate, advance, safeguard or promote the interests of the consumers in general.

"It should be a body formed by a group of persons, coming together of their own will and without being motivated by any financial consideration," the order said.

NCDRC also clarified that if a body is formed with the objective of making financial gains, and not to serve the cause of the consumer or the society in general, it will not qualify as a voluntary consumer association.

"Authenticity of an association is important. I think with clarity on the same, the process will be streamlined and the cases will get expedited. We will spread awareness and appeal to the buyers to form associations and get it registered before moving to the court," said Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (NEFOWA).

NCDRC and the Supreme Court have already made it clear that a group of consumers having a common interest or a common grievance and seeking the same or identical relief against the same person can come together without forming any association to file a case in NCDRC with a claim of Rs 1 crore or more.

In case the claim is less than Rs 1 crore, then consumers need to file cases in the district forum or state commission.

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...

Court approached in the early stages of arbitration will prevail in all other subsequent proceedings

In National Highway Authority of India v. Hindustan Steelworks Construction Limited, the Hon'ble Delhi High Court opined that once the parties have approached a certain court for relief under Act at earlier stages of disputes then it is same court that, parties must return to for all other subsequent proceedings. Language of Section 42 of Act is categorical and brooks no exception. In fact, the language used has the effect of jurisdiction of all courts since it states that once an application has been made in Part I of the Act then ―that Court alone shall have jurisdiction over arbitral proceedings and all subsequent applications arising out of that agreement and arbitral proceedings shall be made in that Court and in no other Court. Court holds that NHAI in present case cannot take advantage of Section 14 of the Limitation Act, 1963 for explaining inordinate delay in filing present petition under Section 34 of this Act in this Court.

No Rebate For Stamp Duty Paid In Another State - Bombay HC

A three judge bench of the Hon'ble Bombay High Court (Bombay HC) in a recent judgment in the matter of Chief Controlling Revenue Authority, Maharashtra State, Pune and Superintendent of Stamp (Headquarters), Mumbai v Reliance Industries Limited, Mumbai and Reliance Petroleum Limited, Gujarat1 has held that orders in case of a scheme of arrangement under Section 391 to 394 of the Companies Act, 1956 (Act) involving different High Courts in multiple states, are separate instruments in themselves. Accordingly, stamp duty would be payable on all the orders (and consequently, all the states) without the benefit of remission, rebate or set-off.