A recent ruling of the Supreme Court will provide much-needed relief to people who have a common grievance, say, against builders who have delayed the delivery of their flats. The apex court has ruled that such flat buyers can get together and approach the National Consumer Dispute Redressal Commission (NCDRC) directly. Consumer protection activists say that the ruling will have a far-reaching impact extending beyond the real estate sector.
According to the Consumer Protection Act, which court a consumer can approach depends on the amount in dispute. If it is up to Rs 20 lakh, a consumer has to approach the district court. If the amount involved is Rs 20 lakh to Rs 1 crore, a consumer can approach the state forum. Only for amounts of above Rs 1 crore can a consumer directly approach the NCDRC.
ALSO READ: Medical certificates need to be authentic, writes Jehangir B Gai
In recent times, however, home buyers have got together to fight their cases against builders. When many flat buyers get together, the amount involved rises above Rs 1 crore. So far whether the case could be filed directly in the NCDRC depended on the opinion of individual courts. Some judges allowed such cases to be filed if all the consumers had a common grievance. Others did not, citing the fact that each of the buyers had a different contract with the builder, which was signed at a different date. The recent Supreme Court judgement, in a case involving Amrapali Sapphire Developers Pvt Ltd versus 43 flat buyers, allowing them to approach the NCDRC, will leave no room for discretion. "Since the Supreme Court ruling will be enforceable on all courts in India, whether to allow joint filing will not depend on the view of individual courts," says Arun Saxena, president, International Consumer Rights Protection Council.
ALSO READ: Create a job loss fund
Experts say that filing similar cases separately makes the whole process tedious and inefficient. "Why should people having the same case against the same builder file cases separately? We had to make hundreds of copies of the same case and file each one of them separately. The judgement also had to be given for hundreds of people separately. This ruling will make the process more efficient," says Saxena.
Joint filing of cases will also make it economical for consumers to fight legal battles. Hundreds of consumers suffering from the same grievance will be able to file a joint complaint and share the legal costs.
ALSO READ: Get your free credit report today, writes Harsh Roongta
Allowing people to go directly to the NCDRC will also mean faster resolution of cases. Earlier, the whole process took a lot of time as there was scope for the opposite party to file an appeal in the state forum and again in the National Commission. "Sometimes 10-15 years went by. Many older homebuyers even passed away before they got relief from the courts. These delays benefited the builders who got more time," says Saxena.
The ruling will have an impact far beyond the real estate sector. For instance, if the smoke emitted by a factory affects an entire locality, people from that locality will be able to come together and file a case.
The judgement will also provide a psychological boost. A lone consumer fighting in the courts feels weak and helpless. "When many people come together to fight a case jointly, they feel empowered," says Saxena.
ALSO READ:
http://www.business-standard.com/article/pf/jehangir-b-gai-medical-certificates-need-to-be-
authentic-117030101293_1.html
http://www.business-standard.com/article/pf/create-a-job-loss-fund-117022600719_1.html
http://www.business-standard.com/article/pf/harsh-roongta-get-your-free-credit-report-today-117022201324_1.html
