Partnership firm is a consumer

Source:- navhindtimes.in

Classique, a partnership firm having office at Santa Cruz, Panaji-Goa, through its partner Jabanputra, approached the National Commission, against an order, passed by the Maharashtra State Consumer Disputes Redressal Commission at Mumbai. It was the case of Classique that they had agreed to purchase a flat from M/s Royal Palms (India) Pvt. Ltd. However, Royal Palms acted in a deficient manner and did not hand over the possession of the flat premises as promised. Maharastra State Commission dismissed the complaint of Classique on the count that it was not a consumer in terms of Section 2 (1) (d) Consumer Protection Act, as the flat was purchased for investment.

The National Commission upon hearing the appeal and considering the material on record were displeasured by view taken by the Maharashtra State Commission and called it an unsustainable order.

The bench comprising of the Justice DK Jain, president of National Commission and member M. Shreesha held, “Although in the written version, it was stated by the respondent that the complainant, being a partnership firm had booked the flat for the purpose of investment but except for the said bald plea we do not find any material on record to show that the partnership firm was engaged in the sale and purchase of the flats.  Merely because an averment to the effect that if the possession of the flat had been given on time, the complainant would have earned rental by letting out the same, does not per se show that the firm was engaged in the real estate business.”

With the above observation the appeal filed by Classique was allowed and the order of dismissal of complaint was set aside. The National Commission directed the complaint filed by Classique to be restored on the board of the State Commission for adjudication on merits of the claim and also directed Royal Palms to maintain status quo till the State Commission takes a final decision on the complaint.

The National Commission accordingly directed the parties to appear before the State Commission and disposed the above appeal.