Purchasing Two Flats/Villa simultaneously would be treated as commercial Usage

A person, who booked two residential flats or villa in the same project would be treated as commercial usage and he will lose the right to claim against the builder under the Consumer Protection Act because of that customer cannot not be treated as consumer under the Section 2(1)(D) of the Act.

The word “Consumer” is defined in Section 2 (1) (d) of the Consumer Protection Act, 1986, which is reproduced as under:-

d)  ‘Consumer’  means any person, who :-

(i)     buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or

(ii) “hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system  of deferred payment and includes any beneficiary of such services  other than the  person  who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval  of the  first mentioned person but does not  include a person who avails of such services for any commercial purpose”.

  It is unequivocally established in several cases that  “[III (2012) CPJ 315] Chilkuri Adarsh v. Ess Ess Vee Constructions” in which it was held that when a consumer has booked more than one unit of residential premises, it amounts to booking of such premises for commercial purposes.  This Commission in “[IV (2007) CPJ 199] Jagmohan Chabra and Anr. v. DLF Universal Ltd.” also observed that when complainant has booked two flats on 2 floors he does not fall within the purview of the consumer.  This Commission in “Consumer Complaint No. 5 / 2014 and 6 / 2014, Sunil Gupta vs. Today Homes & Infrastructure (Pvt.) Ltd.”  observed that consumer cannot book two different villas.  In the light of the aforesaid judgments it becomes clear that as complainant has purchased two flats, it cannot be said to be for his residential purpose but amounts to be investment for commercial purpose and complainant does not fall within purview of the consumer.  Learned State Commission has not committed any error in allowing application and dismissing complaint as not maintainable.

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[1] NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI FIRST APPEAL NO. 1219 OF 2014 (From the order dated 16.10.2014 in CC No. CC/20/2012 of West Bengal State Consumer Disputes Redressal Commission, Kolkata) Date of Judgement is 05.02.2015

 Sources: Photo Google images