Estate Officer v. Charanjit Kaur
Background
Several Chandigarh residents holding 99-year leasehold plots applied to convert their sites to freehold under a 1996 scheme, on payment of a prescribed conversion fee. The Chandigarh Administration (the "Estate Officer") delayed and ultimately refused these conversion requests, partly citing an internal, uncommunicated note suggesting all conversions be put on hold pending a rate revision. Consumer fora (District Forum, State Commission and National Commission) all ruled in favour of the residents, treating them as "consumers" entitled to relief for deficient service and directing the Administration to process the conversions.
Decision Breakdown
The Supreme Court held that the consumer fora lacked jurisdiction in the first place, because converting leasehold land to freehold is a transfer of property title, not the rendering of a "service" within the meaning of the Consumer Protection Act: the residents were therefore not "consumers" for this purpose, distinguishing the facts from precedents about housing construction or allotment being a service. However, the Court found that the Administration's refusal to process the conversions, based only on an internal, uncommunicated administrative note while the 1996 Rules remained legally in force, was arbitrary and discriminatory. Using its special powers under Article 142, the Court directed the Chandigarh Administration to decide the conversion applications as they stood on the date the complaints were originally filed, within three months, and also directed it to set up a citizen-inclusive committee to streamline its property-conversion processes given a pattern of harassment it noted in the Estate Office's functioning.
Lesson Learnt
Not every grievance against a government authority's property-related decision falls under consumer law, but even where consumer fora have no jurisdiction, a court can still step in under its constitutional powers to correct arbitrary administrative inaction that violates citizens' rights, especially when an authority relies on an unofficial internal note instead of following the actual rules in force.