Consumer Protection Act, 1986: s.2(1)(d) and s.12(1) and its Explanation – Consumer – Meaning of – Appellant is a statutory body under the provisions of Karnataka Apartment Ownership Act, 1972 – It consisted of members of the apartments in a multi storey building as per the declaration of opposite party under the 1972 Act – Appellant filed complaint before National Commission – Complaint resisted on the ground that the appellant is not a consumer within the meaning of Act, therefore, has no locus standi to file complaint – National Commission rejected the complaint holding that the appellant was not a recognised consumer association within the meaning of s.12(1)(b) of the Act – Held : Conjoint reading of the various relevant provisions of the 1972 Act and the Bye-laws of the Appellant- Condominium showed that appellant came into existence as per the mandatory provisions under the 1972 Act – Explanation to s.12 of the Act makes it clear that, the recognised consumer association as referred under s.12(1)(b) of the Act means any voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force – By applying Explanation, the appellant cannot be said to be a voluntary consumer association so as to maintain a complaint petition – A voluntary consumer association is a body formed by a group of persons coming together, of their own will and without any pressure or influence from anyone and without being mandated by any other provisions of law – Appellant which consists of members of flat owners in a building, which has come into existence pursuant to a declaration which is required to be made compulsorily under the provisions of 1972 Act, cannot be said to be a voluntary association – Further, it does not fall within the definition of ‘consumer’ as defined under s.2(1)(d) of the Act –Karnataka Apartment Ownership Act, 1972.
Dismissing the appeal, the Court
HELD: 1. To maintain a complaint under the provisions of the Act, complainant must be either a ‘consumer’ within the meaning of Section 2(1)(d) of the Act or it must fit into Section 12(1) of the Act. As per the Section 12(1)(a), a consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided can file a complaint. Under clause (b) of sub-section (1) of Section 12 of the Act, any ‘recognised consumer association’ whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not can file a complaint. As per the Explanation to Section 12 of the Act, ‘recognised consumer association’ means any voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force. It is clear from the Explanation that only a voluntary consumer association registered under the Companies Act, 1956 or any other law can maintain a complaint under Section 12(1)(b) of the Act. The Karnataka Apartment Ownership Act, 1972 is an Act of the State which is enacted with a view to provide for the ownership of an individual apartment in a building and to make such apartment heritable and transferable property and for matters connected therewith. As per Section 13 of the 1972 Act, Declarations, Deeds of Apartments and copies of floor plans are required to be registered under provisions of the Registration Act, 1908. The appellant body came into existence pursuant to clause (8) of the Declaration. [Paras 7-9][828-F; 829 E-H; 830 AE]
2. A conjoint reading of the various relevant provisions of the 1972 Act and the Bye-laws of the Condominium would show that the appellant-body has come into existence as per the mandatory provisions under the 1972 Act. It is an Act to provide ownership of an individual apartment in a building and to make such apartment heritable and transferable property. The Explanation to Section 12 of the Act makes it clear that, the recognised consumer association as referred under Section 12(1)(b) of the Act means any voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force. By applying the said Explanation, the appellant cannot be said to be a voluntary consumer association so as to maintain a petition. Further, it will not fall within the definition of ‘consumer’ as defined under Section 2(1)(d) of the Act. In essence, a voluntary consumer association will be a body formed by a group of persons coming together, of their own will and without any pressure or influence from anyone and without being mandated by any other provisions of law. The appellant association which consists of members of flat owners in a building, which has come into existence pursuant to a declaration which is required to be made compulsorily under the provisions of 1972 Act, cannot be said to be a voluntary association to maintain a complaint under the provisions of the Act. [Para 9][830 G-H; 832 D-F]
Moulivakkam Trust Heights Flats Affected Buyers Association etc. v. M/s. Prime Sristi Housing Pvt. Ltd. & 29 Ors. Etc. 2017 SCC OnLine NCDRC 163 – relied on.
Black’s Law Dictionary IX Edn. – referred to.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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