Tenant while surrendering his tenancy right to the owner in lieu to get a flat in a newly constructed building premises is a Consumer

 

The relationship of the landlord and tenant which was earlier between the parties ceased to exist after the execution of the agreement between the complainant and the respondents, there was a new relationship of flat purchaser and the Builder/ Developer. When a tenant hands over the property on the basis of an agreement relying on the promise that the builder would hand over a portion of the property in lieu of handing over of the possession, the same would be termed as consideration paid by the complainant to the Respondent. The handing over of the constructed premises would be consideration and as such the complainant would be a consumer within the meaning of Section 2(1)(d) of the Act and failure to provide the flat by the respondents is a deficiency in service.

 

(1)  Jagdishbhai M. Sneth alias Soni Versus Surbhih Realtors India Private Limited, NCDRC, New Delhi, Revision Petition Nos. 2589-2590 of 2008, held on 24 April’ 2012;

 

(2)  Regional Provident Fund Commissioner Versus Shiv Kumar Joshi, III (1989) CPJ 36 (SC);

 

(3)  Sonia Bhatia Versus State of U.P. & Ors., 1981 (2) SCC 585;

 

(4)  Ghansi Ram Lal Shah Versus Supriya Suhas Sarmalkar & Ors, decided on 06.09.2011, in R.P. No. 337/11, by the Hon’ble NCDRC, New Delhi;