Entitlement to allotment of plot in accordance with government policy does not constitute a consumer transaction: NCDRC

Brief facts about the case

The applicant and other co-owners were in possession of a land measuring 27 Kanals 18 Marlas which was acquired by the Hoshiarput Improvement Trust/Posite Party/Trust in 1976. As a Local Displaced Person (LDP), the applicant applied for allotment of the plot by paying an amount of Rs.500 application fees application within the specified deadline. They were entitled to a plot of 500 square meters, but were only allocated plots with a total area of ​​496 square meters. Despite repeated requests, the remaining Sq Yds space has not been allocated. They then filed a Consumer Complaint before the District Forum seeking allotment of the remaining plot area and legal costs. The District Forum accepted the complaint, following which the Trust approached the Punjab State Commission. The State Commission dismissed the complaint. The Trust therefore submitted a review application to the National Commission.

Claims of the opposing party

The Trust argued that the complainants were not consumers and that the complaint was false, frivolous and vexatious. It was also confirmed that the Secretary to the Government of Punjab, Local Government Department, Chandigarh, had directed the Trust to allot 500 sq m plots to the complainants through an order. However, the Trust maintained that the applicants had sold these plots. According to the Trust, the Complainants accepted the plots in fulfillment of their claims and were not entitled to any additional area as requested.

Comments of the National Commission

The National Commission noted that the Complainants, although they claimed to be landowners applying for a plot of land under special provisions, did not qualify as consumers within the meaning of the Consumer Protection Act. The Commission emphasized that the applicants were not considered consumers for the purposes of the Act because their dispute concerned an entitlement to a plot of land in accordance with government policy and not a transaction relating to goods or services for personal use. The nature of their complaint did not relate to lapses in the provision of services after the allotment, but focused on the assertion of rights arising from statutory powers to acquire land. The commission stressed that the land allotment entitlement under the relevant laws is limited to a maximum of 500 square meters for local displaced persons (LDPs). Moreover, a dispute over the title of a plot of land does not constitute a failure to provide services after allotment, which falls outside the scope of the Consumer Protection Act. The Commission therefore dismissed the complaint, allowing the legal heirs of the deceased Complainants to pursue remedies through appropriate legal channels.

The commission quashed the orders of the State Commission and the District Forum.

Case title: Confidence in improvement Hoshiarpur vs. Mohan Lal

Case number: RP No. 1255/2013