Members Can File Consumer Complaint Against Their Co-operative Society: NCDRC

Brief Facts:

The Appellants' first appeal was dismissed by the State Consumer Disputes Redressal Commission, Karnataka (“State Commission”) on the ground that the Appellants and Sunmist Cooperative Housing Society (“Respondent”) had no 'consumer-service provider' relationship. The State Commission held that the Appellants' case before the District Commission was itself not maintainable. Feeling aggrieved by the decision of the State Commission, the Appellants filed a second appeal before the National Consumer Disputes Redressal Commission, New Delhi (“NCDRC”).

The Appellants relied on the case of Smt. Kalawati and Ors. vs M/s United Vaish Cooperative Thrift and Credit Society Ltd. (2001), where the NCDRC held that members of a society can be consumers vis-à-vis the society of which they are members. They also have certain rights as a member. It was further contended that Section 93 of the Societies Act does not bar the jurisdiction of the District Commission, because a co-operative society under the Societies Act is similar to a company under the Companies Act, 1986. Since a shareholder is separated from its company (as a different person), a member is also separated from its society. Therefore, if the need arises, a member can raise a consumer dispute against the society. The Appellants also contended that the District Commission wrongfully noted that the complaint was filed under the Consumer Protection Act, 1986. The complaint was filed under the Consumer Protection Act, 2019.

Observations of the NCDRC:

The NCDRC agreed with the contentions of the Appellants and held that the State Commission needs to conduct a fresh hearing of the case on merits, after considering the decision of the NCDRC in Smt. Kalawati and Ors. vs M/s United Vaish Cooperative Thrift and Credit Society Ltd. (2001). As a result, the impugned order of the State Commission was set aside, and the second appeal was accordingly disposed of.

Case Title: Anil Khemchand Advani and Anr. vs Sunmist Cooperative Housing Society Ltd.

Case No.: Second Appeal No. 25 of 2025

Advocate for the Appellants: Mr Anshul Gupta and Ms Chaahat Khanna

Advocate for the Respondent: N.A.