RAJASTHAN HOUSING BOARD & ANRversusRATAN DEVI
- Citation
- 2019 INSC 793
- Decided
- 22 July 2019
- Disposal
- Disposed off
- Bench
- D Y CHANDRACHUD
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
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”
H
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.
G
H
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