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Commissioner, Rajasthan Housing Board v. Hiralal Chanda

Civil Appeal · 2021 INSC 869Decided 11 Dec 2021
Civil Appeal Nos. 7651-7652 of 2021
Dr. Justice D.Y. Chandrachud · Justice A.S. Bopanna

Background

The respondent registered in 1985 for a house under a hire-purchase scheme of the Rajasthan Housing Board. His registration was cancelled in 2000 after he failed to deposit the required "seed money" despite reminders. He took no action for over a decade, and only filed a consumer complaint in 2011 - after the Housing Board issued a 2009 policy allowing restoration of allotments cancelled due to the Board's own administrative mistakes. The District Forum, State Commission, and National Commission all ruled in his favour and ordered restoration of his allotment.

Decision Breakdown

The Supreme Court held the complaint was barred by the two-year limitation period under Section 24A of the Consumer Protection Act, 1986. The cancellation (and the respondent's own default in depositing money despite clear notice) occurred in 2000, and the 2009 policy decision did not revive a registration that had been cancelled due to the consumer's own fault, not the Board's. The Court set aside the NCDRC's order, while recording the Housing Board's statement that it would still offer an alternate allotment at current rates, or a refund, if the respondent wished.

Lesson Learnt

Consumer complaints must be filed within two years of when the problem (cause of action) first arose; a later, unrelated policy change by the other party does not revive a claim that has already gone stale due to the complainant's own delay or default.

Official source (sci.gov.in)View Judgment (PDF)

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