Case Note & Summary
The case involved an appeal by a land-owner challenging the rejection of his complaint under the Consumer Protection Act, 1986 against a builder. The appellant filed Complaint No.21/2002 before the State Consumer Disputes Redressal Commission, Jharkhand, which was initially allowed, directing the builder to pay a sum of Rs.11,03,787/- to the appellant. However, the builder appealed to the National Consumer Disputes Redressal Commission, which ruled that the appellant was not a consumer, thus rendering the complaint not maintainable, relying on its previous decision in Faqir Chand Gulati v. M/s. Uppal Agencies Pvt. Ltd. The Supreme Court heard this appeal alongside the Faqir Chand Gulati case and determined that the agreement in question was not a joint venture but a construction agreement, which established the appellant as a consumer and the respondents as service providers. The court noted that the National Commission had not addressed the merits of the case and had only dismissed it on a preliminary point. Consequently, the Supreme Court allowed the appeal, set aside the National Commission's order, and remitted the matter for fresh consideration on its merits. The judgment was delivered on July 10, 2008.
Headnote
A) Consumer Protection - Maintainability of Complaint - Definition of Consumer - Complaint found maintainable under the Consumer Protection Act, 1986 - The agreement between the parties was determined not to be a joint venture but a construction agreement, establishing the appellant as a consumer and the respondents as service providers. The National Commission's dismissal on preliminary grounds was set aside, and the matter was remitted for fresh disposal on merits. Held that the complaint is maintainable (Paras 4-5).
Issue of Consideration
Whether the appellant qualifies as a consumer under the Consumer Protection Act, 1986.
Final Decision
The Supreme Court allowed the appeal, set aside the order of the National Commission, and remitted the matter for fresh disposal on merits.
Law Points
- Consumer protection
- maintainability of complaint
- definition of consumer
- service provider
- construction agreement



