Builder to pay additional taxes to Corporation on behalf of Home buyers

(Occupancy certificate not obtained)

“The failure to obtain the occupancy certificate has resulted in the levy of higher taxes on the members of the appellant society repeatedly by the municipal authorities. Despite the order of 20 August 2014, the respondent has failed to obtain the occupancy certificate. This has resulted in a situation where the appellant, despite having followed the correct course of litigation in demanding the furnishing of an occupancy certificate, will continue to suffer the injury inflicted by the respondent merely due to the delay in the execution of the order against the respondent. Rejecting the complaint as being barred by limitation, when the demand for higher taxes is made repeatedly due to the lack of an occupancy certificate, is a narrow view which is not consonance with the welfare objective of the Consumer Protection Act 1986.”

Further on the point of Definition of Consumer :

“The NCDRC has held that the appellant is not a ‘consumer’ under the provisions of the Consumer Protection Act as they have claimed the recovery of higher charges paid to the municipal authorities from the respondent. Extending this further, the NCDRC has observed that the respondent is not the service provider for water or electricity and thus, the complaint is not maintainable.  Section 2(1)(d) of the Consumer Protection Act defines a ‘consumer’ as a person that avails of any service for a consideration. A ‘deficiency’ is defined under Section 2(1)(g) as the shortcoming or inadequacy in the quality of service that is required to be maintained by law. In its decisions in Wing Commander Arifur Rahman Khan & Others v. DLF Southern Homes Private Limited & Others⁹ and Pioneer Urban Land Infrastructure Limited v. Govindan Raghavan¹ this Court has held that the failure to obtain an occupancy certificate or abide by contractual obligations amounts to a deficiency in service.”

Reference Samruddhi Co-operative Housing Society Ltd V/S  Mumbai Mahalaxmi Construction Pvt. Ltd: SC Civil Appeal No 4000 of 2019

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Bench ;Dr Dhananjaya Y Chandrachud ,AS Bopanna]

January 11, 2022