ALLOTMENT OF A POT IS NOT INCLUDED IN THE EXPRESSION OF SERVICE - SC

The Top Court recently observed that deficiency in service related to transfer of title of immovable property is not maintainable. Justices Hemant Gupta and A.S.Bopanna observed that the expression of "Service" only includes housing construction and not the allotment of a POT.

The Complainant moved to the District Consumer Forum seeking conversion of a Plot from leasehold to freehold site to accept the requisite conversion fee allotted by Chandigarh administration. The District Forum directed the Estate Officer to convert the said plot to freehold it and pay Rs. 10,000/- as compensation for mental agony. The same decision was upheld by the State and National Consumer Disputes Redressal Commissions.

The Estate Officer filed an appeal before the Apex Court and questioned the decision of the NCDCR. The Estate officer contended NCDCR's finding that the complainants are consumers as charges have been paid for the conversion is not tenable. The charges deposited were not for services but to grant complete title to the allottees.

The SC said that the consumer FORA under the Act do not have the jurisdiction to entertain the complaint under deficiency in service as the expression 'service' does not include plot allotment. However, it is a case of exercise of jurisdiction in a discriminatory manner. Therefore, the court invoked its power under section 142 of the constitution and directed the Administration to decide the claim of conversion. 

Author: Papiha Ghoshal