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Supreme Court of India

RAJASTHAN HOUSING BOARD & ANRversusRATAN DEVI

Citation
2019 INSC 793
Decided
22 July 2019
Disposal
Disposed off

Holding

The Supreme Court held that the consumer complaint was filed beyond the limitation period, rendering the NCDRC’s order unsustainable, and set it aside while exercising Article 142 to order a refund of Rs 25,000 and payment of Rs 1 lakh to the respondent.

Summary

In 1990 the respondent applied for a low‑income group (LIG) tenement in the Mansarover Scheme, paid Rs 4,000 and was issued an allotment letter requiring Rs 47,674 to be paid at possession. The appellant (Rajasthan Housing Board) cancelled the allotment in 1994 for non‑payment, while the respondent claimed she never received a possession letter and that payment was due only on possession. The District Consumer Forum allowed the respondent’s complaint, the State Commission set aside that order, and the National Consumer Disputes Redressal Commission (NCDRC) restored it, directing the appellant to allot the tenement and pay interest, compensation and expenses. On appeal, the Supreme Court examined the respondent’s letters of 1996 and 2008 showing she admitted inability to pay the balance due to weak financial condition and had sought but been denied a special exemption, and noted that the consumer complaint was filed only in 2008, 16 years after the allotment. The Court held that the complaint was hopelessly delayed and barred by the limitation period under the Consumer Protection Act, 1986, and therefore the NCDRC’s order was unsustainable and set aside. However, exercising its power under Article 142, the Court directed the appellant to refund Rs 25,000 already deposited and to pay the respondent Rs 1 lakh in addition to litigation expenses. The appeal was disposed of in favour of the appellant.

Issues considered

  • Whether the consumer complaint filed in 2008 is barred by the limitation period under the Consumer Protection Act, 1986
  • Whether the appellant is liable to allot the tenement and require payment of the balance when the respondent never received a possession letter
  • Whether the NCDRC’s order directing allotment, interest, compensation and expenses is sustainable
  • Whether the Supreme Court may, under Article 142 of the Constitution, modify the relief by ordering a refund and additional payment

Legislation cited

Subjects

Consumer Protection ActLimitation periodHousing allotmentArticle 142RefundCompensationSpecial Exemption SchemeConsumer dispute

Judgment

                       [2019] 10 S.C.R. 955                            955


            RAJASTHAN HOUSING BOARD & ANR                              A
                                 v.
                          RATAN DEVI
                  (Civil Appeal No.5739 of 2019)
                          JULY 22, 2019                                B
        [DR DHANANJAYA Y CHANDRACHUD AND
               INDIRA BANERJEE, JJ.]
       Consumer Protection Act, 1986 – In 1990, the Respondent
applied for the allotment of tenement in the LIG category in the       C
Mansarover Scheme and deposited Rs 4,000/- – Case of the
appellant that since the respondent failed to deposit the balance of
Rs.47,674/-, the allotment was cancelled on 6 April 1994 –
Respondent disputed having received the letter of possession and
stated that the balance payment was to be made only against
possession – Order of the District Forum, allowing the complaint,      D
restored by the National Consumer Disputes Redressal Commission
(NCDRC) – On appeal, held: By the first letter dtd. 15 April 1996,
addressed by the respondent to the appellant, the respondent
admitted that she was unable to deposit Rs.47,674/- but was now
ready to deposit the amount – In subsequent letter also, the           E
respondent specifically stated that she was unable to deposit the
amount because of her weak financial condition – Thus, at the
material time, the respondent was not in a position to comply with
the terms of the allotment which required the payment of the balance
amount of Rs.47,674/ – Thereafter, the consumer complaint was
instituted before the District Forum only in 2008 – This was nearly    F
16 years after the allotment was made to the respondent – Further,
after the respondent was informed in 1998 that her request for the
grant of benefit under the Special Exemption Scheme had been
disallowed, since the house in question was allotted to her under
the Cash Purchase Scheme, the respondent waited almost a decade        G
before moving the District Forum – Complaint before the District
Forum was hopelessly delayed and was filed beyond the period of
limitation as prescribed under the 1986 Act – Appellant could not
have been directed to hand over the tenement to the respondent –
Order of the NCDRC, set aside – However, in terms of the interim
                                                                       H
                                 955
956            SUPREME COURT REPORTS                     [2019] 10 S.C.R.


A     order passed by Supreme Court on 23rd April, 2018, the respondent
      be paid Rs.1 lakh by the appellant, over and above the litigation
      expenses – Further, in exercise of the jurisdiction u/Art.142
      of the Constitution, the amount of Rs 25,000/- deposited
      by the appellant is directed to be refunded – Constitution of India –
      Art.142.
B
            In 1990, the Respondent applied for the allotment of
      tenement in the LIG category in the Mansarover Scheme and
      deposited Rs 4,000/- on 21 February, 1991. The Letter of
      allotment issued to the respondent intimating allotment of
C     tenement, stipulated that Rs 47,674/- was payable at the time of
      possession. As per the appellant, the respondent failed to deposit
      the balance, as a result of which the allotment was cancelled on 6
      April 1994. However, the respondent contended that she did not
      receive the letter of possession and that the payment of the
      balance was to be made only against possession. The District
D     Forum allowed the complaint. The State Consumer Disputes
      Redressal Commission by a split verdict set aside the order of
      the District Forum. However, the National Consumer Disputes
      Redressal Commission restored the order of the District Forum.
      Hence, the present appeal.
E           Disposing of the appeal, the Court

            HELD: 1.1 By the first letter dated 15 April 1996, the
      respondent specifically admitted that she was unable to deposit
      the amount of Rs 47,674/- and she was now ready to deposit the
F     amount. The respondent specifically stated that she was unable
      to deposit the amount because of her financial condition.
      Thereafter, the respondent sought the benefit of the Special
      Exemption Scheme, 1998. However, she was informed that since
      the house in question had been alloted to her under the Cash
      Purchase Scheme, the benefit of the Special Exemption Scheme
G     could not be made available to her. In a subsequent letter dated
      4 May 2008, the respondent again stated that as her financial
      condition was weak, she could not deposit the balance of
      Rs 47,674/- at that time. The facts clearly indicate that at the

H
  RAJASTHAN HOUSING BOARD & ANR. v. RATAN DEVI                        957


material time, the respondent was not in a position to comply         A
with the terms of the allotment which required the payment of
the balance amount of Rs 47,674. Thereafter, the consumer
complaint was instituted before the District Forum only in the
year 2008. This was nearly 16 years after the allotment was made
to the respondent. After the respondent was informed in 1998
                                                                      B
that her request for the grant of benefit under the Special
Exemption Scheme had been disallowed, the respondent waited
almost a decade before moving the District Forum. The complaint
before the District Forum was hopelessly delayed and was filed
beyond the period of limitation as prescribed under the Consumer
Protection Act, 1986. The appellant could not have been directed      C
to hand over the tenement to the respondent. In any event, the
authority could not have been held down to the rates of 1992.
There is no basis in principle for such a direction. [Paras 9, 10]
[959-D-G; 960-A-D]

      1.2 The judgment and order of the NCDRC was                     D
unsustainable and the same is set aside. However, in the exercise
of the jurisdiction of Supreme Court under Article 142 of the
Constitution of India, direction is issued for refund of the amount
of Rs 25,000 which was deposited by the appellant. In terms of
the interim order passed by Supreme Court on 23 April 2018,           E
the respondent should be paid Rs 1 lakh by the appellant, over
and above the litigation expenses as directed by Supreme Court.
[Paras 11, 12] [960-C-E]

       CIVIL APP ELLATE JURISDICTION: Civil Appeal No.5739 of
2019                                                                  F
       From the Judgment and Order dated 29.01.2018 of the National
Commission Disputes Redressal Commission, New Delhi in Revision
Petition No. 2364 of 2015

      K. L. Janjani, Pankaj Kumar Singh, Ms. Varsha Rana, Advs. for   G
the Appellants.

     Abhinav Shrivastava and Ms. Preetika Dwivedi, Advs. for the
Respondent.

                                                                      H
958              SUPREME COURT REPORTS                         [2019] 10 S.C.R.


A            The Judgment of the Court was delivered by
             DR DHANANJAYA Y CHANDRACHUD, J.
             1. Leave granted.
             2. This appeal arises from a judgment dated 29 January 2018 of
B     the National Consumer Disputes Redressal Commission1. The NCDRC
      restored the judgment of the District Consumer Disputes Redressal
      Forum, Jaipur2 dated 2 January 2014 directing the appellant to allot an
      LIG tenement in the Mansarover Scheme to the respondent against the
      payment of a balance of Rs 47,674 as mentioned in the allotment letter
      dated 30 April 1992. The respondent has been directed to pay interest at
C     the rate of 6 per cent per annum on this balance amount. In addition,
      compensation of Rs 70,000 and litigation expenses of Rs 11,000 have
      been granted to the respondent.
             3. The respondent applied for the allotment of a tenement in the
      LIG category in 1990. The respondent deposited an amount of Rs 4,000
D     on 21 February 1991. On 30 April 1992, a letter of allotment was issued
      to the respondent intimating an allotment of a tenement in House No.
      124/53 in the Mansarover Scheme. The letter stipulated that an amount
      of Rs 47,674 was payable at the time of possession.
             4. According to the appellant, the respondent failed to deposit the
E     balance as a result of which the allotment was cancelled on 6 April
      1994. The case of the respondent is that she did not receive a letter of
      possession and that the payment of the balance was to be made only
      against possession. The respondent has also disputed having received
      the letter of cancellation dated 6 April 1994.
F            5. The District Forum allowed the complaint. However, the State
      Consumer Disputes Redressal Commission3 by a split verdict set aside
      the order of the District Forum.
              6. In a revision filed by the respondent, the NCDRC came to the
      conclusion that (i) the balance was to be paid only at the time of possession;
G     (ii) no letter offering possession has been proved to have been served on
      the respondent; (iii) the letter of cancellation was not proved to have
      been served; (iv) the amount which was deposited by the respondent
      1
        “NCDRC”
      2
        “District Forum”
      3
        “SCDRC”
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   RAJASTHAN HOUSING BOARD & ANR. v. RATAN DEVI                              959
        [DR DHANANJAYA Y CHANDRACHUD, J.]

has not been refunded. In the circumstances, the order of the District       A
Forum was restored by the NCDRC.
       7. When notice was issued on 23 April 2018, the appellant was
directed to deposit an amount of Rs 25,000 for litigation expenses which
were permitted to be withdrawn unconditionally. This Court also recorded
the statement of the appellant, that the amount deposited by the             B
respondent together with interest and penalty may be returned to the
respondent. Stay was granted on the above terms.
       8. The material before the Court indicates that the real dispute
between the parties is as to whether the letter offering possession was
in fact made available to the respondent. The submission of the learned      C
counsel for the respondent is that no letter offering possession having
been handed over, the balance in terms of the letter of allotment dated
30 April 1992 was not payable.
        9. On the other hand, learned counsel appearing on behalf of the
appellant has drawn the attention of the Court to two letters which were     D
addressed by the respondent to the appellant. By the first letter dated 15
April 1996, the respondent specifically admitted that she was unable to
deposit the amount of Rs 47,674 and she was now ready to deposit the
amount. The respondent specifically stated that she was unable to deposit
the amount because of her financial condition. Thereafter, the respondent
sought the benefit of the Special Exemption Scheme, 1998. However,           E
she was informed that since the house in question had been alloted to
her under the Cash Purchase Scheme, the benefit of the Special
Exemption Scheme could not be made available to her. In a subsequent
letter dated 4 May 2008, the respondent again stated that as her financial
condition was weak, she could not deposit the balance of Rs 47,674 at        F
that time. She also adverted to the fact that she had been informed that
the Board would not be able to give her the benefit of the Special
Exemption Scheme since the allotment was under the Cash Purchase
Scheme.
      10. The above facts clearly indicate that at the material time, the    G
respondent was not in a position to comply with the terms of the allotment
which required the payment of the balance amount of Rs 47,674.
Thereafter, the consumer complaint was instituted before the District


                                                                             H
960             SUPREME COURT REPORTS                          [2019] 10 S.C.R.


A     Forum only in the year 2008. This was nearly 16 years after the allotment
      was made to the respondent. After the respondent was informed in
      1998 that her request for the grant of benefit under the Special Exemption
      Scheme had been disallowed, the respondent waited almost a decade
      before moving the District Forum. In this factual background, the
      complaint before the District Forum was hopelessly delayed and was
B
      filed beyond the period of limitation as prescribed under the Consumer
      Protection Act, 1986. The appellant could not have been directed to
      hand over the tenement to the respondent. In any event, the authority
      could not have been held down to the rates of 1992. There is no basis in
      principle for such a direction.
C            11. For the above reasons, we are of the view that the judgment
      and order of the NCDRC was unsustainable. We accordingly, set aside
      the judgment and order dated 29 January 2018.
             12. However, in the exercise of the jurisdiction of this Court under
      Article 142 of the Constitution of India, we are inclined to issue a direction
D     for refund of the amount of Rs 25,000 which was deposited by the
      appellant. In terms of the interim order passed by this Court on 23 April
      2018, we are of the view that the respondent should be paid a total
      amount of Rs 1 lakh by the appellant, over and above the litigation
      expenses as directed by this Court.
E          13. The aforesaid payment shall be made within a period of two
      months of the receipt of a certified copy of this order.
             14. The appeal is, accordingly, disposed of.
             15. Pending application(s), if any, shall also stand disposed of.
F
      Divya Pandey                                                 Appeal disposed of.




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