Case: SOBHA HIBISCUS CONDOMINIUM Vs. MANAGING DIRECTOR, M/S. SOBHA DEVELOPERS LTD. &amp; ANR

2. The appellant/complainant is a statutory body under provisions of the Karnataka Apartment Ownership Act, 1972 (for short, 1972 Act). It consists of members, who are the owners of the apartments in a multi- storey building, namely, Sobha Hibiscus situated in Amballipur Village, Varthur Hobli, of South Bangalore Taluk in Karnataka. The appellant- Condominium has come into existence pursuant to a declaration made by the opposite party under the provisions of 1972 Act. When the appellant has filed complaint claiming certain reliefs before the NCDRC, the same is resisted by the opposite party, by taking a preliminary objection that the complainant is not a consumer within the meaning of the Act, therefore, has no locus standi to file the complaint. The NCDRC, by referring to relevant provisions of the Act, has recorded a finding that the complainant is not a recognised consumer association within the meaning of Section 12(1)(b) of the Act.

Court's reasoning:
6. Having heard learned counsels on both sides, we have perused the impugned order and other material placed on record. After considering the submissions made by the learned counsels on both sides with reference to the provisions of the Consumer Protection Act, 1986 and the relevant provisions of the 1972 Act, we are of the view that there is no merit in this appeal so as to interfere with the impugned order, for the following reasons9. On a conjoint reading of the various relevant provisions of the 1972 Act and the Bye-laws of the Condominium referred above, we are of the view that the appellant-body has come into existence as per the mandatory provisions under the 1972 Act. It is clear from the objects of the said Act, that it is an Act to provide ownership of an individual apartment in a building and to make such apartment heritable and transferable property. In view of the mandatory provisions of the 1972 Act the appellant cannot be said to be a voluntary registered association for the purpose of filing a complaint before the competent authority under the provisions of the Act. The Explanation to Section 12 of the Act makes it clear that, the recognised consumer association as referred under Section 12(1)(b) of the Act means any voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force. By applying the said Explanation, the appellant cannot be said to be a voluntary consumer association so as to maintain a petition. Further, it will not fall within the definition of consumer as defined under Section 2(1)(d) of the ActIn 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. 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 1972 Act, cannot be said to be a voluntary association to maintain a complaint under the provisions of the Act7. To maintain a complaint under the provisions of the Act complainant must be either a consumer within the meaning of Section 2(1)(d) of the Act or it must fit into Section 12(1) of the Act.