Entitlement To Plot Allotment Under Government Policies Does Not Constitute Consumer Transaction: NCDRC

Brief Facts of the Case

The Complainant and other co-owners were in possession of 27 Kanals 18 Marlas of land, which the Hoshiarput Improvement Trust/Opposite Party/Trust acquired in 1976. As a Local Displaced Person (LDP), the Complainant applied for plot allotment, paying a Rs. 500 application fee within the specified period. They were entitled to a 500 Sq Yds plot but were allotted only plots totaling 496 Sq Yds. Despite repeated requests, the remaining Sq Yds area has not been allotted. Subsequently, they filed a Consumer Complaint before the District Forum, seeking allotment of the remaining plot area and litigation costs. The District Forum allowed the Complaint following which the Trust appealed to the State Commission of Punjab. The State Commission dismissed the appeal. Consequently, the Trust filed a revision petition with the National Commission.

Contentions of the Opposite Party

The Trust argued that the Complainants were not consumers and that the complaint was false, frivolous, and vexatious. It was also acknowledged that the Secretary to the Govt of Punjab, Department of Local Government, Chandigarh, had ordered the Trust to allot 500 Sq Yds plots to the Complainants via an order. However, the Trust contended that the Complainants had sold these plots. According to the Trust, the Complainants accepted the plots, fulfilling their claims, and they were not entitled to any additional area as requested.

Observations by the National Commission

The National Commission observed that the Complainants, despite their assertion as landowners seeking plot allotment under specific provisions, do not qualify as consumers under the Consumer Protection Act. The commission highlighted that the complainants were not considered consumers under the Act because their dispute centered on entitlement to plot allotment under government policies rather than a transaction involving goods or services for personal use. The nature of their complaint did not involve a deficiency in service after allotment but focused on asserting rights under statutory entitlements for land acquisition. The Commission highlighted that the entitlement for plot allotment under relevant rules is limited to a maximum of 500 Sq Yds for Local Displaced Persons (LDPs). Moreover, the dispute about plot entitlement does not constitute a deficiency in service after allotment, falling outside the Consumer Protection Act's scope. Therefore, the Commission dismissed the complaint, allowing the legal heirs of the deceased Complainants to pursue remedies through appropriate legal channels.

The Commission set aside the State Commission and the District Forum's orders.

Case Title: Hoshiarpur Improvement Trust Vs. Mohan Lal

Case Number: R.P. No. 1255/2013