Case Note & Summary
The case involved an appeal by a builder against an order of the National Consumer Disputes Redressal Commission that allowed a group of 91 purchasers of apartments to file a consumer complaint on behalf of over 1000 purchasers in a residential complex. The builder contended that only a small fraction of the total purchasers had joined the complaint and argued that there was no commonality of interest among the complainants, as some had approached different consumer forums for redressal. The respondents maintained that the issue was settled by previous judgments and that they shared a common interest with all purchasers. The court analyzed the reliefs sought in the complaint, which included compensation for delays in possession and interest on amounts paid. It noted that the complaint did not quantify the total compensation sought and highlighted the absence of participation from owners of a significant number of apartments. The court found that the respondents failed to demonstrate sameness of interest required under Section 35(1)(c) of the Consumer Protection Act, 2019, as the delay in possession varied among purchasers. Ultimately, the court modified the National Commission's order, allowing the complaint to proceed as a joint complaint rather than a representative one, permitting other purchasers to join if they had similar grievances. The appeal was allowed with no order as to costs.
Headnote
A) Consumer Protection - Representative Capacity - Requirements for Filing - Consumer Protection Act, 2019, Section 35(1)(c) - The court held that the complaint could not be treated as one representing all purchasers due to lack of sameness of interest among all buyers, particularly as many owners did not join the complaint. The court emphasized that the absence of pleadings regarding the interests of all apartment owners undermined the representative claim (Paras 41-41).
Issue of Consideration
Whether the National Consumer Disputes Redressal Commission correctly allowed a consumer complaint to be filed in a representative capacity under Section 35(1)(c) of the Consumer Protection Act, 2019.
Final Decision
The appeal was allowed, and the order of the National Commission was modified to treat the complaint as a joint complaint filed by the respondents only, not in a representative capacity for all purchasers. Other purchasers were permitted to join the complaint if they had similar grievances.
Law Points
- Consumer protection
- representative capacity
- class action
- sameness of interest
- Order I Rule 8 CPC
