Regarding Fining Class action case before Consumer Commissions

 

Class Action  debate started with Amrapali Sapphire Developers v/s Amrapali Sapphire Flat Buyers Welfare Association amrapali builders case in 2018 when 43 consumers filed consumer complaints together before the National Commission Flat Buyers Welfare Association, filed the complaint against the builder in May 2016, for delay in handing over possession of their flats.and it was contested by Builders raising following points 

1.      Number of consumer cannot file cases together

2.      The pecuniary jurisdiction of Commission  should be considered on the basis of amount involved in each case separately

3.      RWA cannot be a complainant on behalf of residents

 

 The Supreme Court (SC) announced on that flat owners can now join hands and directly approach the National Consumer Disputes Redressal Commission (NCDRC) against real estate developers for delay in handing over possession of their flats,

Highlights of Amrapali Builder  Case

 

1. Flat buyers can come together to file complain against developers with NCDRC

2. The 43 buyers had complained against Amrapali Sapphire Developers to the Supreme Court for delay in handing over possession of their flats 

3. As per the Consumer Protection Act, a plea can be filed in NCDRC directly only if the cost involved is more than Rs 1 crore 

This order was in 2019 when new act had not come into force

 

 

Thereafter ‘Class Action’ theory was developed was in Consumer Protection Act 2019

 

Law Defined in new Act ;Who can be Consumer

 

Section 2 (5) "complainant" means—(7 type of persons )

(i) a consumer; or

(ii) any voluntary consumer association registered under any law for the

time being in force; or

(iii) the Central Government or any State Government; or

(iv) the Central Authority; or

(v) one or more consumers, where there are numerous consumers having

the same interest;

(Explaination -when these come on behalf of more than one consumer for the same cause,against the same person or authority or unit or establishment  ,for the similar relief )

Previous

Next