Ensure all of you have a common grievance; new national forum verdict loosens rule
In the past, many judges at the National Consumer Dispute Redressal Commission (NCDRC) did not allow consumers to file a case jointly because of a technicality in the law. But, a recent judgment by an NCDRC Bench has given some respite to such consumers, especially home buyers seeking relief against developers.
If the amount in dispute is up to Rs.20 lakh, the law mandates individuals to approach district consumer forums. For amounts over Rs.20 lakh and up to Rs.1 crore, they need to seek relief from state forums. One may only approach the national forum or NCDRC, for amounts over Rs.1 crore.
What if three flat owners, who individually paid Rs.50 lakh for a house in the same project, decide to approach a consumer court? While they don’t qualify individually, together the amount in dispute comes to Rs.1.5 crore. “Until now, only a few judges permitted such consumers to do a joint filing at the national forum. Those who did not allow this were of the view that each individual should have a dispute amount of over Rs.1 crore and also that there were different dates of contracts and consideration. So, when consumers approached the national commission, it all depended what view a judge held,” said advocate Uttam Datt. He was mentioned at the outset, against a developerers going to consumer forums. Now, in a landmark judgment, the NCDRC has said consumers with common interest and similar grievances can approach the national commission jointly if their aggregate amount in dispute is over Rs.1 crore.
Datt said this would expedite delivery of justice. It would save consumers from the long-drawn, three-tier process of district and state commissions before reaching the national forum. It took around two years for either party to get a judgment at district- and state-level forums. This judgment will be binding, unless the Supreme Court sets it aside.
When a group of buyers approach the NCDRC jointly, the latter would hear the case if all consumers have a common grievance. If home buyers approach the national forum, they should have a common complaint, like construction delay or cheating, and should seek a common relief — like penalty payout or compensation. Those seeking different reliefs need to file a separate case.
“In consumer cases, it is common that affected parties approach a consumer forum jointly. It helps to get faster relief; also, legal costs get divided among all the complainants,” said Arun Saxena, founder and president of the International Consumer Rights Protection Council.
He noted, though, that approaching the NCDRC would also mean all consumers outside Delhi would need to constantly visit the city for all hearings.
Business Standard New Delhi,21th October 2016
Datt said this would expedite delivery of justice. It would save consumers from the long-drawn, three-tier process of district and state commissions before reaching the national forum. It took around two years for either party to get a judgment at district- and state-level forums. This judgment will be binding, unless the Supreme Court sets it aside.
When a group of buyers approach the NCDRC jointly, the latter would hear the case if all consumers have a common grievance. If home buyers approach the national forum, they should have a common complaint, like construction delay or cheating, and should seek a common relief — like penalty payout or compensation. Those seeking different reliefs need to file a separate case.
“In consumer cases, it is common that affected parties approach a consumer forum jointly. It helps to get faster relief; also, legal costs get divided among all the complainants,” said Arun Saxena, founder and president of the International Consumer Rights Protection Council.
He noted, though, that approaching the NCDRC would also mean all consumers outside Delhi would need to constantly visit the city for all hearings.
Business Standard New Delhi,21th October 2016
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