SC verdict: Consumers’ Association can file case against builder in NCDRC

Background

May 2016
A group of 40+ buyers of Amrapali Sapphire Apartments formed a “Amrapali Sapphire Flat Buyers Welfare Association” and filed a case in NCDRC against the builder “Amrapali Sapphire Developers Pvt Ltd” for delaying the possession of their apartments.

August 2016
NCDRC gave verdict that apartment buyers can form an association and file case against a builder if the collective pecuniary value (aggregate value of the services) is more than 1 crore.
(Read How to file a case in NCDRC to know more about various slabs of pecuniary values to file case in various consumer forums)

In Between

To get stay order on NCDRC verdict, the builder appealed to Supreme Court with an argument that the cost of each apartment was less than Rs 1 Crore, hence the buyers were individually ineligible to directly approach the NCDRC.

Feb 2017
Honorable Supreme court upheld the verdict given by NCDRC.

Hence a Buyer Association can file a case against a builder if the collective pecuniary value (aggregate value of the services) is more than 1 crore.


(Read How to file a case in NCDRC to know more about where should buyers of apartment file case against builder whether in “District Consumer Forum” or in “State Commission” or in “National Consumer Disputes Redressal Commission”)


For your reference, as per THE CONSUMER PROTECTION ACT, 1986, “Section 12” Manner in which complaint shall be made:

(1) A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by –

(a) the 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;

(b) 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;

(c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or

(d) the Central Government or the State Government, as the case may be, either in its individual capacity or as a representative of interests of the consumers in general.


We recommend you to read this article to know recent judgement given by NCDRC clarifying the type of association to be formed to file a case in NCDRC.

Disclaimer: The information in this article is collected from information available in public domain. In case of any discrepancies please write to us using “Contact Us” section.

 

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