LexU.T. CHANDIGARH ADMINISTRATION & ANR. versus AMARJEET SINGH & ORS.
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[2009] 4 S.C.R. 541 '\ U.T. CHANDIGARH ADMINISTRATION & ANR. A v. AMARJEET SINGH & ORS. Civil Appeal No. 1994 of 2006 MARCH 17, 2009 B [R.V. RAVEENDRAN AND MARKANDEY KAT JU, JJ.] • Consumer Protection Act, 1986: Auction for grant of lease of sites - Liability to pay lease premium instalments and annual rent - If conditional upon c UT Chandigarh providing basic amenities to sites leased - Held: It is not conditional - There is no obligation on Chandigarh administration to provide amenities with reference. to lease of sites by public auction - It cannot be said that instalments could be rescheduled so as to begin after D amenities were provided and that interest would start to run only when lessee takes possession - When instalments are not paid on due dates, lessees become liable to pay penal interest from due date to date of actual payment - Rate of default interest in r. 12(3A) as on date of auction, would apply - Hence, order of National Commission rescheduling recovery E of lease premium instalments and granting certain relief to "· lessee in regard to interest, set aside - Capital of Punjab (Development & Regulation) Act, 1952 - Chandigarh Leasehold Sites & Building Rules, 1973. s. 2 (b), (c), (d), (q) and (o)- Lease of sites by public auction F by owner - Complaint by auction purchaser/(essee - Maintainability of - Held: Not maintainable - Grievance by purchaser/lessee will not give rise to consumer dispute- There is no hiring or availing of services - Purchaser/lessee is not a 'consumer' - Owner is not a 'trader' or 'service provider'. G Words and Phrases: 'Amenity' - Meaning of - In the context of s. 2(b) of the Capital of Punjab (Development and Regulation) Act, 1952. 541 H 542 SUPREME COURT REPORTS (2009] 4 S.C.R. A Respondent-lessees secured leasehold interest in T sites belonging to UT Chandigarh in public auctions held by it. It is alleged that the appellants did not provide any amenities in regard to the site and as a result the respondents suffered huge losses. Respondents filed a B complaint before the Consumer forum that until the basic amenities-approach road, sewerage, ground water, street light, electricity, parking spacl:! were provided, the appellants should not be legally entitled to claim the • balance of premium or the annual rent. The complaint was c allowed with certain directions. In appeal, the National Commission rescheduled the recovery of lease premium instalments and granted certain reliefs to respondents in regard to interest. Hence the present appeals. Allowing the appeals filed by UT Chandigarh D Administration and dismissing the appeals filed by the .. lessees-complainant, the Court HELD: 1.1 A 'com\>laint' is maintainable before a consumer forum under the Consumer Protection Act, E 1986, by a 'complainant'-'consumer' or others specified' against a 'trader' or 'service provider'. The terms 'complainant' 'complaint' 'consumer' 'trader' and 'service' are defined in clauses (b),(c),(d),(q) and (o) of Section 2 of the Act. Therefore, a consumer forum will have jurisdiction only when: (i) the complainant is a 'consumer' as defined F in clause (d) or a person specified in clause (b) of section 2 of the Act; (ii) the respondent is a 'trader' as defined in clause (q) or a provider of 'service' as defined in clause (o) of section 2 of the Act; and (iii) the 'complaint' relates to any of the matters specified in clause (c) of section 2, G for obtaining any relief provided by order under the Act. [Para 1 OJ [555-F-G] 1.2 Where a public development authority having invited applications for allotment of sites in a lay out to be H formed or for houses to be constructed and delivered, • .I UT CHANDIGARH ADMINISTRATION & ANR. V. 543 AMARJEET SINGH & ORS. fails to deliver possession by forming the lay out of sites A or by constructing the houses within the stipulated period, the delay may amount to a deficiency in service by treating the development authority as a service provider and the allottee as the consumer. But where existing sites are put up for sale or lease by public auction by the owner, and B the sale/lease is confirmed in favour of the highest bidder, the resultant contract relates to sale or lease of immovable property. There is no hiring or availing of services by the person bidding at the auction. Nor is the seller or lessor, a trader who sells or distributes 'goods'. The sale price
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