Land mark Judgement delivered by Hon'ble Supreme Court of India in the field of Housing Construction

Posted On: 2015-06-23 06:03:57

On 5/11/1992, the Hon'ble Supreme Court of India pronounced a landmark judgement in the field of Housing Construction, and the brief details whereof are as under:


Case between:  Lucknow Development Authority V/s. M.K. Gupta.

This Judgement holds good even today and is widely quoted in many of the Consumer Forum cases. 

The Hon'ble Supreme Court of India through this Judgement held that, 'housing construction' was covered by the 'Consumer Protection Act' even before its amendment in 1993 and that even bodies like the Bangalore or the UP Development Authority were to consider themselves under the purview of the 'Consumer Protection Act'. By this decision, the Hon'ble Supreme Court of India once again examined the various provisions of the 'Consumer Protection Act' and its conclusions which have far reaching impact.


The summary of the conclusions are as under:

1.      A Government or Semi-Government body or a local authority is as much amenable to the Act as any other private body rendering similar service.

2.      The jurisdiction of the  Consumer Forum  cannot be limited on the ground that although it was service, it was related to immovable property.

3.      Housing Construction or Building Activity by a private or a statutory body is 'service' within the meaning of the 'Consumer Protection Act'.

4.      If a public functionary acts maliciously and this exercise of the power results in harassment and agony then it is not an exercise of the power but it is abuse of authority and power.

5.      The Consumer Forum can direct the department to pay compensation to the complainant immediately with further direction to recover the amount from those responsible for such behavior.

Source : Land Mark Judgement Delivered By Hon'ble Supreme Court Of India In The Field Of Housing Construction