SUBHECHHA WELFARE SOCIETYversusM/S. EARTH INFRASTRUCTURE PVT. LTD.

                        [2020] 3 S.C.R. 811                             811


               SUBHECHHA WELFARE SOCIETY                                A
                                 v.
          M/S. EARTH INFRASTRUCTURE PVT. LTD.
               (Civil Appeal Nos.9961-9962 of 2017)
                       FEBRUARY 14, 2020                                B
           [MOHAN M. SHANTANAGOUDAR AND
                R. SUBHASH REDDY, JJ.]
       Consumer Protection Act, 1986: s.12 – Recognised consumer
association – Composite complaint filed by a registered welfare
                                                                        C
society on behalf of more than one consumers having grievance
that they booked units with the opposite party on different dates
and inspite of making major payment, possession was not delivered
to them – Complaints dismissed on the ground that recognised
consumer association can file complaint on behalf of single
consumer only but cannot file complaint on behalf of several            D
consumers in one complaint – On appeal, held: s.12(1)(b) r/w
Explanation to s.12 envisages that voluntary registered association
can file a complaint on behalf of its members to espouse their
grievances – There is nothing in the said provision of the Act which
restrict its application to the complaint pertaining to an individual
                                                                        E
complainant – Impugned order is, therefore, set aside and matter
remitted to NCDRC for consideration afresh.
     Allowing the appeals and remitting the matter to NCDRC,
the Court
       HELD: 1. The finding of the NCDRC that recognised                F
consumer association can file complaint on behalf of a single
consumer, but cannot file complaint on behalf of several consumers
in one complaint, is erroneous and there is no legal basis for
that. A reading of Section 12(1)(b) of the Act read with Explanation
to Section 12 is clear that voluntary registered association can
file a complaint on behalf of its members to espouse their              G
grievances. If a recognised consumer association is made to file
multiple complaints in respect of several consumers having a
similar cause of action, that would defeat the very purpose.
[Para 7][813 F-H; 814-A]
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                                811
812             SUPREME COURT REPORTS                           [2020] 3 S.C.R.


A           CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 9961-
      9962 of 2017.
            From the Judgment and Order dated 06.12.2016 of the National
      Consumer Disputes Redressal Commission at New Delhi in Complaint
      Nos. 1196 and 1197 of 2016 and order dated 05.01.2017 in R.A. Nos.
B     312 and 313 of 2016.
            With
            Civil Appeal Nos. 9959-9960 of 2017.
            Basava Prabhu S. Patil, Sr. Adv., Ashwani Kumar, S.P. Kamrah,
C     Ms. Iti Sharma, Ms. Peeha Verma, Puneet Sharma, Rajesh Mahale,
      Shivendra Dwivedi, Syed Faizan Ali, Ms. Tejaswini Misra, Rachit Batra,
      Ms. Sunita Sharma, Rohit Vats, Daya Krishan Sharma, Anoop Kr.
      Srivastav, Shivkumar Gavalkar, R.N. Pareek, Vipin Kumar Saxena,
      Shailesh Madiyal, Sudhanshu Prakash, Kartik Anand, Advs. for the
      appearing parties.
D
            The Judgment of the Court was delivered by
            R. SUBHASH REDDY, J.
             1. These civil appeals are filed by the complainant in Consumer
      Complaint Nos.1196 and 1197 of 2016, aggrieved by the order dated
E     06.12.2016 and the order dated 05.01.2017 in R.A.Nos.312 and 313 of
      2016 passed by the National Consumer Disputes Redressal Commission
      (for short, ‘NCDRC’), New Delhi.
             2. The appellant-complainant is a registered Welfare Society.
      Consumer Complaint No.1196 of 2016 has been filed by the complainant
F     on behalf of 8 allottees and Consumer Complaint No.1197 of 2016 has
      been filed by the complainant on behalf of 12 allottees with the allegations
      that buyers booked units with the opposite party on different dates and
      inspite of making major payment, possession has not been delivered to
      them. In the aforesaid complaint directions are sought against the opposite
      party to hand over possession of units in all respects or in the alternative
G     to provide other flat of identical size or to refund the amount deposited
      along with interest and compensation.
             3. It is the case of the appellant that the complainant being a
      society registered under Haryana Registration and Regulation Act has
      filed complaint on behalf of allottees, under Section 12(1)(b) of the
H     Consumer Protection Act, 1986 (for short, ‘the Act’).
      SUBHECHHA WELFARE SOCIETY v. M/S. EARTH                                  813
   INFRASTRUCTURE PVT. LTD. [R. SUBHASH REDDY, J.]

       4. Both the complaints filed by the appellant-complainant are           A
dismissed vide impugned order dated 06.12.2016 on the ground that
recognised consumer association can file complaint on behalf of single
consumer only, but cannot file complaint on behalf of several consumers
in one complaint. Review applications preferred against the dismissal of
the complaints have also been dismissed vide order dated 05.01.2017
                                                                               B
which order is also under challenge.
       5. We have heard Sri Ashwani Kumar, learned counsel appearing
for the appellant. Inspite of service of notice, there is no appearance on
behalf of the respondent.
       6. Learned counsel appearing for the appellant has submitted that       C
the reasoning assigned by the NCDRC for dismissing the complaints as
not maintainable, is erroneous as much as there is no restriction on the
voluntary registered association to file complaint on behalf of single
consumer only. It is submitted that the restriction as recorded in the
impugned order will defeat the very purpose of registering an association.
Learned counsel has also brought to our notice an order of the NCDRC           D
in Consumer Complaint No.816 of 2016 wherein the Tribunal has recorded
a finding that, Section 12(1)(b) of the Act does not preclude the recognised
consumer association from filing a composite complaint on behalf of
more than one consumers, having a similar grievance against the seller
of the goods or the provider of services, as the case may be. Further, it      E
is submitted that the said order is affirmed by this Court as the Civil
Appeal Nos.10882 of 2016 etc. titled M/s. Amrapali Sapphire Developer
Pvt. Ltd. v. M/s. Amrapali Sapphire Flat Buyers Welfare Association
preferred against the orders passed by the NCDRC are dismissed by
order dated 21.02.2017.
                                                                               F
        7. Having considered the submissions made by the learned counsel
for the appellant and on perusal of the impugned order and other material
placed on record, we are of the view that the finding of the NCDRC
that recognised consumer association can file complaint on behalf of a
single consumer, but cannot file complaint on behalf of several consumers
in one complaint, is erroneous and there is no legal basis for that. From      G
a reading of Section 12(1)(b) of the Act read with Explanation to Section
12 it is clear that voluntary registered association can file a complaint on
behalf of its members to espouse their grievances. There is nothing in
the aforesaid provision of the Act which would restrict its application to
the complaint pertaining to an individual complainant. If a recognised         H
814              SUPREME COURT REPORTS                          [2020] 3 S.C.R.


A     consumer association is made to file multiple complaints in respect of
      several consumers having a similar cause of action, that would defeat
      the very purpose of registration of a society or association and it would
      result only in multiplicity of proceedings without serving any useful
      purpose.
B            8. We are in agreement with the view taken by the NCDRC in
      interpreting the provisions of Section 12(1)(b) of the Act in order dated
      30th August 2016 in Consumer Complaint No.816 of 2016 passed in the
      case of Amrapali Sapphire Flat Buyers Welfare Association etc. v.
      Amrapali Sapphire Developers Pvt. Ltd. etc. which is also affirmed by
      this Court by virtue of dismissal of Civil Appeal Nos.10882 of 2016 etc.
C     vide order dated 21.02.2017.
             9. For the aforesaid reasons, these civil appeals are allowed and
      the impugned common order dated 06.12.2016 passed in Consumer
      Complaint No.1196 and 1197 of 2016 and the orders dated 05.01.2017
      passed in R.A. Nos.312 and 313 of 2016 are set aside. The matter is
D     remitted back to the National Consumer Disputes Redressal Commission,
      New Delhi with a direction to consider the complaints on merits and
      pass appropriate orders. It is made clear that the observations made in
      this order are only for the purpose of disposal of these appeals which
      are directed against the order of the NCDRC dismissing the complaints
E     in limine on the ground of maintainability. It is open for the Commission
      to consider the grievance(s) raised in the complaints on its own merits.


      Devika Gujral                   Appeals allowed and matter remitted to NCDRC.


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