×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Landowner in contract with builder is a consumer, says SC

Last Updated 23 July 2016, 20:06 IST

A landowner entering into a contract with a builder for raising construction would be described as a consumer, the Supreme Court has held.

“In a given circumstance, it has to be examined if there was any joint venture between the landowner and the builder. If the landowner has no say or control over the construction and he does not participate in the business, the irresistible conclusion is that the landowner is a consumer under the Consumer Protection Act,” a bench of Justices Dipak Misra and N V Ramana said.

The apex court set aside an order by the National Consumer Disputes Redressal Commission which held that Visakhapatnam resident Bunga Daniel Babu, who entered into a contract with a builder for raising multi-storey structures on different plots, cannot be termed consumer.

Referring to the definition of consumer, the court said Babu is neither a partner nor a co-venturer. He has no say or control over the construction. He is only entitled to, as per the Memorandum of Understanding, a certain constructed area only.

“The National Commission has affirmed the order passed by the State Commission on the ground that the complainant is not a consumer as his purpose is to sell flats and has already sold four flats. In our considered opinion, the whole approach is erroneous,” the bench said.

There has to be an appropriate adjudication of the matter except the status of the appellant as a consumer, the court said, referring the matter to the State Commission for fresh consideration.

ADVERTISEMENT
(Published 23 July 2016, 20:06 IST)

Follow us on

ADVERTISEMENT
ADVERTISEMENT