An association registered due to mandate of law under Apartment Ownership Act cannot maintain consumer complaint; SC.

Supreme Court of India

Justice R SUBHASH REDDY & Justice MOHAN M. SHANTANAGOUDAR]

It was held by the SC {Sobha Hibiscus Condominium v. Managing Director, M/s. Sobha Developers Ltd. & Anr.} in essence, a voluntary consumer association will be a body formed by a group of persons coming together, of their own will and without any pressure or influence from anyone and without being mandated by any other provisions of law. It was held that the appellant association which consists of members of flat owners in a building, which has come into existence pursuant to a declaration which is required to be made compulsorily under the provisions of Karnataka Apartment Ownership Act, 1972, cannot be said to be a voluntary association to maintain a complaint under the provisions of the Act. Therefore, the NC was right in dismissing the complaint of the appellant and the appeal was accordingly dismissed.

In the present case, the order rejecting the complaint filed by the appellant on the ground that the appellant-Condominium has no locus standi to file the complaint since neither it is a ‘consumer’ nor it is a ‘recognised consumer association’ within the meaning of Section 12 of the Act was assailed before the SC. The appellant body has come into existence pursuant to a declaration made by the opposite party in terms of the Karnataka Apartment Ownership Act, 1972.