The National Consumer Disputes Redressal Commission (NCDRC) has delivered a significant judgment in a series of appeals involving the Tricity Media Co-operative House Building Society Ltd. and its members. The case, heard by Justice Ram Surat Ram Maurya (Presiding Member) and Bharatkumar Pandya (Member), addresses crucial issues regarding consumer rights in cooperative housing societies.
Background:
The case revolves around multiple complaints filed by members of the Tricity Media Co-operative House Building Society Ltd., including Amit Mahajan, Kulwinder Kaur, and Lal Chand. The society, formed by media professionals, had acquired 25 acres of land in Sector 113, Mohali, for developing residential plots. Members booked plots between 2011 and 2013, paying substantial amounts, but even after 9 years, possession was not delivered.
Key Legal Issues:
1. Jurisdiction of Consumer Forums in cooperative society disputes
2. Applicability of limitation period in such cases
3. Liability of the society for delays in plot development
4. Appropriate compensation for aggrieved members
Court’s Decision:
The NCDRC upheld the State Commission’s orders with some modifications. Key points of the judgment include:
1. Consumer Forum Jurisdiction: The Commission cited several Supreme Court judgments to affirm that consumer forums have jurisdiction over disputes between cooperative societies and their members, despite provisions in cooperative society acts barring civil court jurisdiction.
2. Continuing Cause of Action: The NCDRC held that the failure to deliver possession constitutes a continuing wrong, rejecting the society’s argument of the complaints being time-barred.
3. Liability for Delays: The Commission held the society responsible for the delays, rejecting the argument that outsourcing development to a third party absolved it of responsibility.
4. Compensation: While upholding the State Commission’s orders for possession or refund, the NCDRC modified the interest rates. For delay compensation, it reduced the rate from 12% to 6% per annum, and for refunds, from 12% to 9% per annum.
Important Observations:
The NCDRC emphasized, “The remedy under Consumer Protection Act is in addition to any other remedy as such the complaints are maintainable.” It also noted, “What makes a wrong, a wrong of a continuing nature is the breach of a duty which has not ceased but which continues to subsist.”
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Parties and Case Numbers:
– Appellants: Tricity Media Co-operative House Building Society Ltd. and its office bearers
– Respondents: Amit Mahajan, Kulwinder Kaur, Lal Chand
– Case Numbers: FA/867/2020, FA/868/2020, FA/689/2021, FA/808/2021
Lawyers:
– For the Society: Mr. D. V. Sharma, Sr. Advocate assisted by Mr. Vikas Kuthiala, Advocate
– For Amit Mahajan: Mr. Vivek Gupta, Advocate
– For Kulwinder Singh: Mr. Ritesh Khare, Advocate
– For Lal Chand: Mr. Praveer Singh, Advocate
