MANU/SC/1266/2019

True Court CopyTM English

IN THE SUPREME COURT OF INDIA

SLP (C) Nos. 4272 and 5237 of 2015

Decided On: 16.09.2019

Appellants: Punjab Urban Planning and Development Authority and Ors. Vs. Respondent: Vidya Chetal and Ors.

Hon'ble Judges/Coram:
N.V. Ramana, Mohan M. Shantanagoudar and Ajay Rastogi

JUDGMENT

N.V. Ramana, J.

1. The reference before us arises out of the order dated 13.07.2018, passed by a two-Judge Bench of this Court, wherein they expressed doubt as to the correctness of the judgment rendered in the case of HUDA v. Sunita, MANU/SC/2801/2005 : (2005) 2 SCC 479. This Court therein held that the National Consumer Disputes Redressal Commission (hereinafter referred to as "NCDRC") had no jurisdiction to adjudicate the legality behind the demand of "composition fee" and "extension fee" made by HUDA, as the same being statutory obligation, does not qualify as "deficiency in service".

2. It is pertinent herein to note the opinion expressed by the two-Judge Bench regarding the decision in the case of Sunita (supra) while passing the referral order:

We are, prima facie, of the view that this six-paragraph order, which does not, prima facie, contain any reason for the conclusion reached, requires a relook in view of the fact that the Consumer Protection Act, 1986 is a beneficent legislation.

3. The counsel on behalf of the Petitioner submitted that the order in the case of Sunita (supra) is well reasoned, as it validly holds that the NCDRC lacks jurisdiction to decide the legitimacy behind the demand of "composition fee" and "extension fee". Relying on the aforesaid holding, the counsel further stated that "statutory dues" cannot be claimed as "deficiency in services". Lastly, the learned Counsel submitted that although the Consumer Protection Act, 1986 (hereinafter referred to as "the Act") is beneficial in nature, demanding a liberal construction, the same cannot be used to extend the ambit of the Act by bringing in remedies or benefits which were not intended by the legislature.

4. On the contrary, the learned senior Counsel appointed by this Court as amicus curiae to assist and appear on behalf of the Respondent claimed that the order passed in the case of Sunita (supra), is an aberration in a series of long-standing judgments by this Court. The learned amicus curiae thereafter placed strong reliance upon the judgments of this Court in Lucknow Development Authority v. M.K. Gupta, MANU/SC/0178/1994 : (1994) 1 SCC 243, and Ghaziabad Development Authority v. Balbir Singh, MANU/SC/0282/2004 : (2004) 5 SCC 65, wherein it was held that the NCDRC has the jurisdiction to protect consumers against defective services rendered even by a statutory body. Further, the learned amicus curiae, while supporting the view that the Sunita case (supra) was per incuriam, has taken us through various judgments of this Court in this regard and submitted that the statutory authorities come under the ambit of the Act.

5. Heard the learned Counsel appearing on behalf of the Petitioner and the learned amicus curiae in this case. The precise question raised before us is whether the law la........