(Mohan M. Shantanagoudar and R. Subhash Reddy, JJ.)
Civil Appeal Nos. 9961-9962 of 2017
Subhechha Welfare Society _________________________ Appellant;
v.
Earth Infrastructure Pvt. Ltd. ______________________ Respondent.
With
Civil Appeal Nos. 9959-9960 of 2017
Subhechha Welfare Society ________________________ Appellant;
v.
Earth Infrastructure Pvt. Ltd. ______________________ Respondent.
Civil Appeal Nos. 9961-9962 of 2017 and Civil Appeal Nos. 9959-9960 of 2017, decided on February 14, 2020
The Judgement of the Court was delivered by
R. Subhash Reddy, J.:—
1. These civil appeals are filed by the complainant in Consumer Complaints Nos. 1196 and 1197 of 2016, aggrieved by the order dated 06.12.20161 and the order dated 05.01.2017 in Shubhechha Welfare Society v. Earth Infrastructure (P) Ltd.2 passed by the National Consumer Disputes Redressal Commission (for short “NCDRC”), New Delhi.
2. The appellant complainant is a registered Welfare Society. Consumer Complaint No. 1196 of 2016 has been filed by the complainant on behalf of 8 allottees and Consumer Complaint No. 1197 of 2016 has been filed by the complainant on behalf of 12 allottees with the allegations that buyers booked units with the opposite party on different dates and inspite of making major payment, possession has not been delivered to them. In the aforesaid complaint, directions are sought against the opposite party to hand over possession of units in all respects or in the alternative to provide other flat of identical size or to refund the amount deposited along with interest and compensation.
3. It is the case of the appellant that the complainant being a society registered under the Haryana Registration and Regulation Act has filed complaint on behalf of allottees, under Section 12(1)(b) of the Consumer Protection Act, 1986 (for short “the Act”).
4. Both the complaints filed by the appellant complainant are dismissed vide the impugned order dated 06.12.20161 on the ground that recognised consumer association can file complaint on behalf of single consumer only, but cannot file complaint on behalf of several consumers in one complaint. Review applications preferred against the dismissal of the complaints have also been dismissed vide order dated 05.01.20172 which order is also under challenge.
5. We have heard Sri Ashwani Kumar, learned counsel appearing for the appellant. Inspite of service of notice, there is no appearance on behalf of the respondent.
6. Learned counsel appearing for the appellant has submitted that the reasoning assigned by NCDRC for dismissing the complaints as not maintainable, is erroneous as much as there is no restriction on the voluntary registered association to file complaint on behalf of single consumer only. It is submitted that the restriction as recorded in the impugned order1 will defeat the very purpose of registering an association. Learned counsel has also brought to our notice an order of NCDRC in Amrapali Sapphire Flat Buyers Welfare Assn. v. Amrapali Sapphire Developers (P) Ltd.3 wherein the Tribunal has recorded a finding that Section 12(1)(b) of the Act does not preclude the recognised consumer association from filing a composite complaint on behalf of more than one consumers, having a similar grievance against the seller of the goods or the provider of services, as the case may be. Further, it is submitted that the said order is affirmed by this Court as Civil Appeals Nos. 10882 of 2016, etc. titled Amrapali Sapphire Developers (P) Ltd. v. Amrapali Sapphire Flat Buyers Welfare Assn.4 preferred against the orders passed by the NCDRC are dismissed by the order dated 21.02.2017.
7. Having considered the submissions made by the learned counsel for the appellant and on perusal of the impugned order1 and other material placed on record, we are of the view that the finding of NCDRC that the recognised consumer association can file complaint on behalf of a single consumer, but cannot file complaint on behalf of several consumers in one complaint, is erroneous and there is no legal basis for that. From a reading of Section 12(1)(b) of the Act read with Explanation to Section 12, it is clear that voluntary registered association can file a complaint on behalf of its members to espouse their grievances. There is nothing in the aforesaid provision of the Act which would restrict its application to the complaint pertaining to an individual complainant. If a recognised consumer association is made to file multiple complaints in respect of several consumers having a similar cause of action, that would defeat the very purpose of registration of a society or association and it would result only in multiplicity of proceedings without serving any useful purpose.
8. We are in agreement with the view taken by NCDRC in interpreting the provisions of Section 12(1)(b) of the Act in order dated 30th August 2016 in Consumer Complaint No. 816 of 2016 passed in Amrapali Sapphire Flat Buyers Welfare Assn. v. Amrapali Sapphire Developers (P) Ltd.3 etc., which is also affirmed by this Court by virtue of dismissal of Civil Appeal No. 10882 of 2016, etc. vide order dated 21.02.20174.
9. For the aforesaid reasons, these civil appeals are allowed and the impugned common order dated 06.12.2016 passed in Shubhechha Welfare Society v. Earth Infrastructure (P) Ltd.1 and the orders dated 05.01.2017 passed in Shubhechha Welfare Society v. Earth Infrastructure (P) Ltd.2 are set aside. The matter is remitted back to the National Consumer Disputes Redressal Commission, New Delhi with a direction to consider the complaints on merits and pass appropriate orders. It is made clear that the observations made in this order are only for the purpose of disposal of these appeals which are directed against the order1 of NCDRC dismissing the complaints in limine on the ground of maintainability. It is open for the Commission to consider the grievance(s) raised in the complaints on its own merits.
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1 Shubhechha Welfare Society v. Earth Infrastructure (P) Ltd., 2016 SCC OnLine NCDRC 2248
2 Review Application No. 312 of 2016, order dated 5-1-2017 (NCDRC)
3 Consumer Case No. 816 of 2016, order dated 30-8-2016 (NCDRC)
4 Civil Appeal No. 10882 of 2016, order dated 21-2-2017 (SC)
