Supreme Court Allows Joint Consumer Complaint by Flat Buyers Under Section 12(1)(c) of Consumer Protection Act, 1986 — Common Grievance Sufficient Despite Different Dates, Costs, and Sizes. NCDRC's Dismissal Set Aside, Matter Remitted for Fresh Consideration.

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Case Note & Summary

The appeal arose from an order of the National Consumer Disputes Redressal Commission (NCDRC) dated 19 February 2016, which dismissed a consumer complaint filed by twenty-six flat buyers against Supertech Limited and others. The complainants had booked flats in a residential project named 'Oxford Square' in Greater Noida, Uttar Pradesh. They sought various reliefs including withdrawal of possession offers made without a valid occupancy certificate, refund of illegal charges, and compensation for delayed possession. The complainants filed an application under Section 12(1)(c) read with Section 2(1)(b)(iv) of the Consumer Protection Act, 1986 seeking permission to file a joint complaint, claiming commonality of interest. The NCDRC rejected the application on the grounds that the agreements were executed on different dates (August 2010 to January 2014), flats were of different sizes, total costs differed, offers of possession were made on different dates (January 2015 to April 2015), and compensation amounts varied (Rs 7.31 lakhs to Rs 26.70 lakhs). The NCDRC held there was nothing common between the complainants and dismissed the complaint, granting liberty to file individual complaints. The Supreme Court noted that after the NCDRC's decision, a Full Bench of the NCDRC in Ambrish Kumar Shukla v Ferrous Infrastructure Pvt. Ltd. (2017) 1 CPJ 1 (NC) clarified that for a complaint under Section 12(1)(c), the requirement is sameness of interest, i.e., a common grievance, and differences in cost, size, area, and date of booking are immaterial. The Supreme Court also referred to Anjum Hussain v Intellicity Business Park Pvt. Ltd. (2019) 6 SCC 519 which took note of the Full Bench decision. The Court held that the NCDRC's view was contrary to the correct legal position. The Supreme Court allowed the appeal, set aside the impugned order, and remitted the matter to the NCDRC for fresh consideration of the complaint in accordance with law, particularly in light of the principles laid down in Ambrish Kumar Shukla.

Headnote

A) Consumer Law - Representative Complaint - Section 12(1)(c) Consumer Protection Act, 1986 - Commonality of Interest - The NCDRC dismissed a joint complaint by 26 flat buyers on grounds of differences in agreement dates, flat sizes, costs, and compensation claims. The Supreme Court held that the test under Section 12(1)(c) is sameness of interest, not identity of all facts. So long as the grievance is common and identical relief is claimed, differences in cost, size, area, and date of booking are immaterial. The matter was remitted to NCDRC for fresh consideration in light of the Full Bench decision in Ambrish Kumar Shukla (Paras 1-12).

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Issue of Consideration

Whether a complaint under Section 12(1)(c) of the Consumer Protection Act, 1986 is maintainable when multiple flat buyers have different dates of booking, costs, sizes of flats, and compensation amounts, but share a common grievance against the builder.

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Final Decision

The Supreme Court allowed the appeal, set aside the impugned order of the NCDRC dated 19 February 2016, and remitted the matter to the NCDRC for fresh consideration of the complaint in accordance with law, particularly in light of the principles laid down in Ambrish Kumar Shukla v Ferrous Infrastructure Pvt. Ltd.

Law Points

  • Section 12(1)(c) of Consumer Protection Act
  • 1986
  • representative complaint
  • commonality of interest
  • sameness of interest
  • Order I Rule 8 CPC
  • Ambrish Kumar Shukla v Ferrous Infrastructure Pvt. Ltd.
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Case Details

2020 LawText (SC) (8) 46

Civil Appeal No. 3526 of 2016

2020-08-24

Dr Dhananjaya Y Chandrachud

Vikrant Singh Malik and Others

Supertech Limited and Others

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Nature of Litigation

Civil appeal against NCDRC order dismissing joint consumer complaint by flat buyers.

Remedy Sought

Appellants sought to set aside NCDRC order and allow joint complaint under Section 12(1)(c) of Consumer Protection Act, 1986.

Filing Reason

NCDRC dismissed joint complaint on ground of no commonality among complainants due to differences in dates, costs, sizes, and compensation.

Previous Decisions

NCDRC dismissed Consumer Complaint No. 1290 of 2015 on 19 February 2016, granting liberty to file individual complaints.

Issues

Whether a complaint under Section 12(1)(c) of the Consumer Protection Act, 1986 is maintainable when multiple flat buyers have different dates of booking, costs, sizes of flats, and compensation amounts, but share a common grievance against the builder.

Submissions/Arguments

Appellants argued that NCDRC's view is contrary to Full Bench decision in Ambrish Kumar Shukla v Ferrous Infrastructure Pvt. Ltd., which held that sameness of interest is sufficient; differences in cost, size, date are immaterial. Respondent argued that NCDRC was justified as agreements were separate, dates different, sizes and costs varied, and compensation amounts differed; also, some appellants had taken possession.

Ratio Decidendi

For a complaint under Section 12(1)(c) of the Consumer Protection Act, 1986, the requirement is sameness of interest, i.e., a common grievance of numerous persons. Differences in cost, size, area of flat/plot, and date of booking/allotment/purchase are immaterial so long as the grievance is common and identical relief is claimed for all.

Judgment Excerpts

what is required for the applicability of Section 12(1)(c) of the Consumer Protection Act read with Order I Rule 8 of the Code of Civil Procedure is the sameness of the interest i.e. a common grievance of numerous persons which is sought to get redressed through a representative action. so long as the grievance of the consumers is common and identical relief is claimed for all of them, the cost, size, area of the flat/plot and the date of booking/allotment/purchase, would be wholly immaterial.

Procedural History

Twenty-six flat buyers filed Consumer Complaint No. 1290 of 2015 before NCDRC under Section 12(1)(c) of Consumer Protection Act, 1986. NCDRC dismissed the complaint on 19 February 2016, holding no commonality. Appellants appealed to Supreme Court. During pendency, NCDRC Full Bench in Ambrish Kumar Shukla (7 October 2016) clarified the law. Supreme Court heard appeal and delivered judgment.

Acts & Sections

  • Consumer Protection Act, 1986: Section 12(1)(c), Section 2(1)(b)(iv), Section 13(6)
  • Code of Civil Procedure, 1908: Order I Rule 8
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