TMI Blog2013 (2) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... plies for allotment of building site or for a flat constructed by development authority and enters into an agreement with the developer or a contractor, the nature of the transaction is covered by the expression 'service' of any description. The housing construction or building activity carried on by a private or statutory body was, therefore, held to be 'service' within the meaning of clause (o) of Section 2(1) of the Act as it stood prior to the inclusion of the expression 'housing construction' in the definition of 'service' by Ordinance No.24 of 1993. Having regard to the nature of the transaction between the appellant-company and its customers which involved much more than a simple transfer of a piece of immovable property it is cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fora established under the said Act. Relying upon the decision of this Court in Lucknow Development Authority v. M.K. Gupta [1994] 1 SCC 243, the High Court has answered the question in the affirmative and held that the respondents were 'consumers' and the appellant was a 'service' provider within the meaning of the Act aforementioned, hence amenable to the jurisdiction of the fora under the said Act. 2. The undisputed facts in the context of which the question arises have been summed up by the High Court in the following words: "Indisputable facts are that the opposite party promoted ventures for development of lands into house-sites and invited the intending purchasers through paper publication and brochures to join as members. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (supra) this Court while dealing with the meaning of the expressions 'consumer' and 'service' under the Consumer Protection Act observed that the provisions of the Act must be liberally interpreted in favour of the consumers as the enactment in question was a beneficial piece of legislation. While examining the meaning of the term 'consumer' this Court observed: " .. The word 'consumer' is a comprehensive expression. It extends from a person who buys any commodity to consume either as eatable or otherwise from a shop, business house, corporation, store, fair price shop to use of private or public services. In Oxford Dictionary a consumer is defined as, "a purchaser of goods or services". In Black's Law Dictionary it is explained to me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ably expected to come into existence at some future time, though not now existing; for example, the future product of grain or trees already planted, or the successive future instalments or payments on a contract or engagement already made." In other words service which is not only extended to actual users but those who are capable of using it are covered in the definition. The clause is thus very wide and extends to any or all actual or potential users. But the legislature did not stop there. It expanded the meaning of the word further in modern sense by extending it to even such facilities as are available to a consumer in connection with banking, financing etc. Each of these are wide-ranging activities in day to day life. They are discha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lat is for the benefit of person for whom it is constructed. He may do it himself or hire services of a builder or contractor. The latter being for consideration is service as defined in the Act. Similarly when a statutory authority develops land or allots a site or constructs a house for the benefit of common man it is as much service as by a builder or contractor. The one is contractual service and other statutory service. If the service is defective or it is not what was represented then it would be unfair trade practice as defined in the Act. Any defect in construction activity would be denial of comfort and service to a consumer. When possession of property is not delivered within stipulated period the delay so caused is denial of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the expression 'housing construction' in the definition of 'service' by Ordinance No.24 of 1993. 7. In the light of the above pronouncement of this Court the High Court was perfectly justified in holding that the activities of the appellant-company in the present case involving offer of plots for sale to its customers/members with an assurance of development of infrastructure/amenities, lay-out approvals etc. was a 'service' within the meaning of clause (o) of Section 2(1) of the Act and would, therefore, be amenable to the jurisdiction of the fora established under the statute. Having regard to the nature of the transaction between the appellant-company and its customers which involved much more than a simple transfer of a piece of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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