Summary
The Court reversed dismissal of a consumer complaint concerning delayed delivery of office space. The purchasers’ existing business and dealings in property did not by themselves disprove their pleaded purpose of earning a livelihood through self-employment. Rather than remand the longstanding dispute, the Court ordered refund of the admitted receipts with 12% interest from the complaint date and litigation costs.
Issues
- Whether an office-space purchaser’s existing business necessarily established a commercial purpose excluding consumer status.
- Whether the admitted payment and failure to deliver usable premises justified direct refund relief.
Provisions considered
- Section 2(1)(d) and Explanation, Consumer Protection Act, 1986Consumer status depended on the dominant purpose and evidence in the particular transaction, including the pleaded self-employment and livelihood purpose. (¶¶ 9, 10, 11, 12, 13)
Held
- Commercial purpose must be assessed on the facts and dominant purpose of the transaction; no fixed formula applies. A sufficiently pleaded livelihood claim requires evaluation of the evidence rather than automatic threshold rejection. (¶¶ 10, 11, 12)
- The purchaser’s statement that he dealt in property did not itself show that this office was bought for resale or investment. It did not contradict the specific plea that the premises were intended for self-employment and earning a livelihood. (¶ 13)
- The objection to the substituted office unit could not be revived after the purchasers signed the agreement accepting it. That did not excuse the developer’s failure to deliver the premises within the agreed period. (¶¶ 14, 15)
- Given the age of the dispute, termination of the agreement, admitted receipts and absence of a plea that the premises were ready for occupation, direct refund with 12% interest appropriately balanced the equities without a remand. (¶¶ 15, 16, 17)
Result
Appeal allowed; Commission’s dismissal set aside and complaint partly allowed. Developer directed to refund Rs 51,10,117 with 12% annual interest from the complaint date until payment and Rs 1 lakh litigation costs.