Laws laid down by supreme court

Law Point –Whether filing complaint by more than one consumers with Sameness of the interest will become a complaint for ‘class action’

 

Summery /Law

 

Vikrant Singh Malik & 25 Ors. Versus  Supertech Limited & 2 Ors (Through its M.D.)

Consumer Case No. 1290 OF 2015

Decided on 24 august 2020(SC)

Law PointWhether filing complaint by more than one consumers with Sameness of the interest will become a complaint for ‘class action’

FACTS ;

A joint complaint filed by 26 flat buyers against Supertech builder with same interest, seeking same relief –

  1. Direct the Supertech to withdraw its offer of possession without a valid Occupancy Certificate/Completion Certificate
  2. Withdraw demand raised and refund if already paid for  open as well as covered car parking
  3. Direct to withdraw demand /refund money under super area declared.
  4. Direct to withdraw cost escalation charges
  5. Direct to withdraw demand raised under the head "Farmer's compensation charges
  6. Direct to withdraw/refund any demand raised/collected in the name of club charges
  7. Direct to withdraw the demand of  interest 
  8. Direct Opposite Party No.2 to cancel/withdraw the license granted to the Opposite Party No.1 and takeover the project
  9. Direct the Opposite Party No.1 to withdraw the demand raised in the name of Labour Welfare charges,  water connection charges / EDC charges, maintenance charges
  10. Direct the Opposite Party No.1 to pay delayed possession penalty

But there was variation of facts of each homebuyer about the allotment of their flat such as –

Apartment Distinct

Date of Buyer agreement different

Date of execution of agreement different

Price of flat Different

Area of flat different

While discussing the facts of the case, National Commission observed a few discrepancies in the Present complaint namely Frame of complaint, nature of pleadings and relief sought

  • Only seeks to high light  the grievance of 26   complaints  and they do not possess the character of representative for all having the common interest which is the essential  element of section 2(i)(c) and then could refer to  section 13(6)

·         The content of the complaint also is a single party centric and it speaks for individual consumers.

National Commission dismissed the complaint  considering it not a ‘class action’ case and suggested to file individual complains.

Supreme Court sends back the case to National Commission to allow amendment so as it make it perfect “class action’ case because it found element of sameness of interest was very much there .

Hence law laid down by Supreme Court for “Class Action” character as a consumer Complaint thus stands as hereunder-

1.      There should be  an element of sameness of the interest and with common interest of all the consumers joining together.

2.      The complaint should be represented by one leading case for protection of interest& benefit of all the consumers.

3.      Factually different cost,size ,booking date and price variation will not affect the character of “class action” against the same party with the same objective held Supreme Court.

4.     The content of the complaint must also not be a single party centric it should speak for all the consumers.

 

Become a Member of the new revolution "Consumer Awakening" and instantly expand your knowledge with the Important Landmark Judgements, Laws Laid down by the Supreme Court for Consumer Rights, Get access to hundreds of Featured Articles in 2 different Languages; English and Hindi - a valuable professional resource to draw upon, and a powerful, collective voice to advocate for your protection of rights as a consumer nationwide.

Thank you for your interest in becoming a "Consumer Awakening" Member!
You will find information on Customer Rights, what we're doing and how to become a member. If you are looking forward to become a member of our portal and gain access to Hundreds of Featured Articles which will clearly give you an insight of yoru rights as a Consumer, then Read Further. more detail on our technologies and technology process,