Individual lawsuit or class lawsuit in a builder-homebuyer dispute


Whether one should go for individual lawsuits or class lawsuits in India in a consumer dispute

Answer

The best possible way to get a relief for homebuyers with common interests and grievances in a housing project is to come together as one group and file a class action lawsuit against a builder under Section- 12 (1) (c) of the Consumer Protection Act.

The objective behind permitting a class action lawsuit against a builder is to facilitate the decision of a consumer dispute in which a large number of consumers are interested. There should be no need for each of them to file individual complaints. It is necessary for such a complaint to be filed on behalf of or for the benefit of all the persons having such a community of interest.

The National Consumer Disputes Redressal Commission (NCDRC) has already clarified that all homebuyers in a housing project who may or may not have filed cases against developers are eligible for compensation or benefits.

Moreover, a larger Bench of the NCDRC has said that a complaint filed for the benefit of or on behalf of all allottees of a project irrespective of the size of their flats or plots, date of purchase and price paid for property who have a common grievance (i.e. delay in delivery) would be maintainable under Section- 12 (1) (c) of the Consumer Protection Act. The relief claimed will be identical in case the builder fails to deliver on time or give a refund “with or without compensation claimed for all of them,” the Bench interpreted when issues relating to the concerned Section were referred to it.


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Consumer Court Lawyers

Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
19 years Experience
Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
32 years Experience
Advocate Saifuddin Saifee
Maharani Road, Indore
18 years Experience
Advocate J. P. Rinwa
Swej Farm, Sodala, Jaipur
18 years Experience

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Consumer Court Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or contact a Lawyer of your choice to address your query in detail.


Related Articles


"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

Similar questions

Respected Sir/Mam, I booked a flat in Noida,U.P. in 2011 and was promised that it will be given to me by 2014. However, till date construction has not…

Read More

Builder is not properly hand over the flat, various flaws in construction like leaking the walls, duplicate material used even doors is not fitted pro…

Read More

Builder is giving me 25months late possession and charged me escalation charge 50k and unknown internet 37k in final letter. Ready to give approx 1.5 …

Read More

We are family of 6 (senior citizen parents 70 + 2 daughters) We had purchased 3BHK on Jan 2008 I had paid 72.20 lakhs in 2008 of which he gave me regi…

Read More