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Structured Summary of the Opinion — Consumer Disputes Redressal Commission, Gandhinagar (Complaint No.123 of 2021)

Factual and Procedural Background

This is a consumer complaint (Complaint No. 123 of 2021) filed before the Consumer Disputes Redressal Commission, Gandhinagar. The complainant is Mr. Yogesh Kantilal Patel (noted in the record as the current Chairman and member of Ratna Paradise Housing Co‑operative Service Society), who claims ownership of flats B/101, B/102 and B/202 in the society. The opponents are Ratna Paradise Housing Co‑operative Service Society Ltd., represented through its committee members (Hiren Himmatlal Shah, Manish Shah, Vijay Somabhai Patel, Vivek Dhirubhai Patel and Amit Rawal).

The complainant filed the application under Section 35 of the Consumer Protection Act, 2019, seeking directions to prohibit alleged unfair and restrictive practices by the society and claiming damages of Rs.60,000. The matter proceeded on pleadings and documents filed by both sides, including a written statement and affidavit for the opponents (pages 147–174, affidavit dated 01.09.2021) and a rejoinder by the complainant (pages 177–187). Written arguments and documentary exhibits (including a rent contract) were placed on record by the parties. The matter was heard in open court and the judgment was pronounced on 5 January 2022.

Legal Issues Presented

  1. Whether the consumer forum has jurisdiction to adjudicate a dispute that arises from internal management and resolutions of a registered co‑operative housing society between its members.
  2. Whether the complainant qualifies as a "consumer" within the meaning of the Consumer Protection Act (reference in the text to Section 2(7)), given that he is alleged to be carrying on boarding and lodging (renting/leasing) activity from his flat.
  3. Whether the dispute is barred from the forum by alternative statutory remedies under the Co‑operative Societies law (references in the text to Section 96 and Section 166 of the Co‑operative Societies Act) such that this Commission lacks jurisdiction.
  4. Whether the internal resolutions and policies of the co‑operative society, and alleged breaches thereof, are matters for the Registrar of Co‑operative Societies or other statutory forum rather than the consumer forum.

Arguments of the Parties

Complainant's Arguments (as recorded)

  • The complainant contends he is a member of the society and the society is a service provider under the Consumer Protection Act and has violated his fundamental rights under Articles 14, 15, 16 and 21 of the Constitution of India.
  • He seeks directions to restrain the opponents from restrictive and unfair practices that prevent bachelor girls from being tenants/paying guests in his flat and claims damages (Rs.60,000).
  • He relies on a list of documents (index, registered bylaws, resolutions 13‑B and 14, correspondence, emails, and certain judgments cited by serial numbers in the record) and filed written arguments and a rent contract to support his claim that his activity (providing lodging to college girls) is not a commercial activity that would exclude him from being a consumer.

Opponents' Arguments (as recorded)

  • The opponents assert that the dispute is essentially an internal dispute between members of a registered co‑operative society and that alternative statutory remedies are available under the Co‑operative Societies law; therefore, the consumer forum has no jurisdiction and the complaint is not maintainable.
  • They contend that the society is residential and not formed for commercial business; the complainant is carrying on boarding/lodging (rental) activity from his flat and thus is engaged in commercial activity, which disqualifies him from being a "consumer" under the Act.
  • They argue that members do not pay consideration for services from the society (only reimbursements for costs) and therefore the complainant cannot claim to be a consumer for such internal matters; they rely on provisions of the Gujarat Co‑operative Societies Act (Section 96) and Section 166 of the Co‑operative Societies Act as barring jurisdiction of courts/forums in such disputes.
  • They allege the complainant has not come with clean hands, has suppressed material facts, breached society bylaws, and that principles of natural justice were not violated by them. They seek dismissal with heavy costs (they sought Rs.1,00,000 in pleading).

Table of Precedents Cited

The opinion refers to "judgments relied by the complainant" and notes that the complainant's counsel produced copies of judgments, but the provided text does not identify any precedent by name or citation.

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Commission summarized and applied the following reasoning, as recorded in the opinion:

  1. Jurisdictional threshold: The Commission treated the dispute at the threshold as an internal dispute between members of a registered co‑operative housing society concerning society resolutions, policies and internal management. The Commission emphasized that such disputes are ordinarily subject to the statutory remedies provided under co‑operative society law and may fall within the jurisdiction of the Registrar of Co‑operative Societies rather than the consumer forum.
  2. Character of complainant's activity: The Commission found that the complainant himself admitted to renting/leasing his flat and providing boarding and lodging services to "bachelor girls studying in college." The Commission characterized this as commercial activity and observed that a person engaged in such commercial activity could be excluded from the definition of "consumer" (reference made to Section 2(7) of the Act as cited in the record).
  3. Effect on fundamental rights claim: The Commission noted that the complainant could not plausibly plead breach of fundamental rights (Articles 14, 15, 16 and 21) arising from his own commercial boarding/lodging activity vis‑à‑vis the society. The Commission treated the invocation of fundamental rights as unsustainable in the context of the internal dispute.
  4. Forum discretion and prior warning: The record shows the Commission had informed the complainant's counsel at the outset that the complaint appeared to be an internal society dispute with statutory remedies and therefore might not be maintainable before the consumer forum. Despite this, on the counsel's request, notices were issued and the matter was heard; however, the Commission expressly stated it did not dwell upon merits because of the threshold jurisdictional and maintainability issues.
  5. Conclusion on maintainability: On the basis that (a) the dispute arises out of internal management between members of a registered co‑operative society, (b) the complainant is engaged in boarding/lodging (commercial) activity and therefore does not fall within the consumer definition for the purposes pleaded, and (c) statutory remedies under co‑operative society law exist, the Commission concluded it lacked jurisdiction to entertain the complaint.

The Commission's analysis cites statutory sections referenced in the pleadings (Section 35 of the Consumer Protection Act under which the complaint was filed; references in the respondents' pleadings to Section 96 and Section 166 of the Co‑operative Societies Act; and a reference to Section 2(7) on the definition of "consumer"). The judgment does not elaborate or cite named judicial precedents in the provided text.

Holding and Implications

Holding: The complaint is dismissed for lack of jurisdiction/maintainability and for the complainant not qualifying as a consumer in the circumstances pleaded.

Direct consequences and orders given in the judgment:

  • The complaint stands dismissed with costs quantified at Rs. 5,000 (Rupees Five Thousand Only).
  • The costs are to be deposited in the Commission within 10 days from the date of the order; after deposit the amount shall be disbursed in equal portions to the opponent members.
  • A copy of the judgment is to be given to the parties free of charge. The judgment was pronounced in open court on 05 January 2022.

Broader implications:

The opinion confines its result to the direct effect on the parties: the complaint is dismissed for being an internal society dispute and because the complainant is treated as carrying on a commercial activity that excludes him from the definition of "consumer" for the purposes of the claim. The provided opinion does not state or declare any new legal precedent beyond its adjudication of these facts and legal contentions.

Bench and Signatures: Hon'ble Mr. D. T. Soni, President; Mr. Jigar P. Joshi, Member. Pronounced on 05 January 2022.

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    MR. YOGESH KANTILAL PATEL-(CURRENT CHAIRMAN AND MEMBER OF RATNA PARADISE HOUSING CO-OPERATIVE SERVICE SOCIETY) v. RATNA PARADISE HOUSING CO-OPERATIVE SERVICE SOCIETY LTD. - 1) HIREN HIMMATLAL SHAH(CUR. SECRETARY) (2)MANISH SHAH(TREASURER) (3)VIJAY SOMABHAI PATEL(COM. MEMBER) (4)VIVEK DHIRUBHAI PATEL (5)AMIT RAWAL

    BEFORE THE CONSUMER DISPUTES R

    EDRESSAL

    COMMISSION GANDHINAGAR. Complaint No.123 of 2021 Mr. Yogesh Kantilal Patel (Current Chairman and member of Ratna Paradise Housing Co-operative Service Society) B-102, Ratna Paradise, Nr. Shaligram Lakeview,

    B/h Vaishnavdevi Temple, Ta. Kharoj,

    Gandhinagar-382470 ...Complainant

    VERSUS Ratna Paradise Housing Co-operative

    Service Society Ltd. Nr. Shaligram Lakeview,

    B/h Vaishnavdevi Temple,

    Kharoj, Gandhinagar-382470 Through its committee members: 1. Hiren Himmatlal Shah (Current Secretary, Elected since 07.03.2021)

    2. Manish Shah (Current committee member, elected since 07.03.2021)

    3. Vijay Somabhai Patel (Current committee member, elected since 07.03.2021)

    1

    2 4. Vivek Dhirubhai Patel (Current committee member, elected since 07.03.2021)

    5. Amit Rawal

    (Current committee member, elected since 07.03.2021) ...Opponents Appearance: Ms. Priya Sogani, L.A. for the Complainant Mr. Harshvardhan Joshi, L.A. for the Opponent

    Coram Hon'ble Mr. D. T. Soni, President

    Mr. Jigar P. Joshi, Member Per: Hon'ble Mr. D. T. Soni, President and

    member of

    1. The

    complainant whois acting as chairman the opp. society has filed this application against opp. committee members under Section 35 of the Consumner Protection Act, 2019, seeking direction to prohibit opp. such unfair practices and has sought damages of Rs.60,000/- (Rupees Sixty Thousand only) from the opponents.

    2. Factual Matrix: This is unfortunately a dispute between the members and Ratna Paradise Housing Co-operative Service Society

    Ltd. (for short "the society") at Gandhinagar. The complainant Mr. Yogesh Kantilala Patel, claims to be owner of flat of the same society vide no. B/101, B/102

    2

    3 and B/202. There is no dispute that opp. is registered SOCiety and are the committee members. The complainant has stated that opp. society is a service provider under the Act has violated the fundamental rights of the complainant under Arts. 14, 15, 16 and 21 of the Constitution of India.

    At the threshold, the complainant has harped upon the settled law in view of the definition of consumer, services provider and the maintainability of the case like present

    one as member of the society and against the society. It

    appears that complainant has grievance against such resolutions made by opps. and has given a bunch of documents. The complainant has stated that, he has right to give on rental / lease basis. The complainant has sought

    direction to restrain opp. from carrying out any restrictive and unfair practices restraining the bachelor girls as paying guest and tenants. Hence, this complaint is filed.

    3. In support of his claim, the complaint has given list of documents dated 27.07.2021 including copy of the index,

    synopsis, the list of dates and events, copy of registered bylaws, of resolution 13-B and 14, series of copy correspondence between the

    members, E-mails and judgments relied by the complainant vide serial no.18 to 24 at page no.14 dated 27.07.2021. For opp. a detailed written statement is filed by Mr. Joshi, 4. L.A. from page no.147 to 174 with the affidavit of opp.

    3

    4 no.4 Mr. Amit Raval, dated 01.09.2021. In the w.s. firstly, it is vehemently stated that since, this dispute is between the members of the registered Co-operative Society, well alternative statutory remedy lies and detailed evidence is

    required to be led therefore, this forum has no jurisdiction

    and the maintainability of this complaint is highly resisted and stated that this society is a purely residential society

    and not formed for any commercial business and economic activity and the society has no shops, offices within his premises. Therefore, complaint is baselessly made in vague manner and not tenable on the merits also as

    the complainant has not come out with clean hands and has suppressed the material facts and also not joined necessary

    opp. party. It is also stated that by sheltering the Consumer Act, the complainant has wasted the precious time of this Court. The complainant is not a Consumer as he is dealing in commercial activity which is clearly stated by himself stating that complainant provides boarding lodging

    services therefore, it is amply clear that in Co-operative Society, no commercial activity shall be carried out by.

    member as per the bylaws. It is stated that complainant

    himself has breached as bylaws. It is well settled law that

    no citizen has fundamental right to become a member of

    the Co-operative Society but it is a statutory right. It is

    stated that material facts are suppressed for personal

    benefits by the complainant. It is also stated that

    submission is not made by way of affidavit by the

    4

    5 complainant. It is stated that the jurisdiction of this forum is barred under the Gujarat Co-operative Society Act under Section 96 of the Act, and reference of Section 166 of the Co-operative Societies Act is also made barring the Jurisdiction of civil or revenue court in view of the dispute

    of the society between the members. It is also stated that alleged disputed raised by the complainant is purely a

    related to internal management of the society and the policy as well as procedure, therefore, proper jurisdiction

    lies to Registrar of Co-operative Society and not with this consumer forum. It is stated that no cause of action has

    arisen. The point of limitation under Section 69 of the Act

    is also pressed, it is also stated that opps. have provided services to the complainant and in order to any

    become a consumer under Act, it is not enough that person

    avails any of the services but t

    he person pays a consideration for services and in Co-operative housing society, a member does not pay to

    the society any consideration for services being received. But only

    reimbursement of costs incurred by the society on behalf of members for such services like water, housekeeping, electricity etc. Therefore, maintenance security, lift, paid the members is nothing but reimbursement

    of by

    expenditure incurred by the society. It is s

    tated that no principle of natural justice has b

    een violated by the opp. and the complainant has not come out with clean

    hands

    being holding position as committee members as well

    as

    5

    6 chairman of the society, he bhis defaulter, non-compliant, and has been consistently violating terms and conditions of thes ale deed as well as resolution passed by the majority

    members of thecommittee who are representing general

    bodyo f the members of the society. Hence, requires to be dismissed with cost of Rs. 1,00,000/- (Rupees One Lakh only).

    5. The rejoinder affidavit is filed by the complainant from

    no.177 to 187 denying the grounds and averments page made in the written statement. 6. It is made clear that we are not going to decide internal dispute_between the members of the society who are in battle before us.

    7. The complainant has also given some points by way of

    written arguments from page 205 to 208 with some documents like rent contract etc. 8. Ms. Priya Sogani, L.A. for the complainant is heard at length and has also produced points like written arguments from 205 to 207 and has also referred to in her arguments. It is mainly submitted that Co-operative society has right to redress his grievance by way of filing the complainant

    before the consumer forum which is well settled law and the opp. has provided services to the complainant. It is further submitted that intention of legislature is to provide

    6

    the benefits to the consumers protecting his right and, hence, there are circumstances where in spite of the purchasing the goods for commercial purpose, it has been treated as the consumer for the purpose of granting relief under the Act. The copies of the judgments relied by Ms. Sogani, L.A. have also been perused by us. It is also submitted that merely the complainant is providing lodging residential facility to bachelor girls studying in colleges,

    such activity cannot be termed as commercial activities. Ms. Sogani, L.A. has vehemently submitted that though it

    is dispute between the members of the societies and opps.

    have shown the alternative remedy under the statute, in spite of this, since the services have been provided by the

    opp. and the complainant has suffered. Therefore, such type of harassment and unfair practices by the opp. requires to be stopped for which the complainant has

    sought the relief.

    9 9 . . Mr. Joshi, L.A. for the opp. has strenuously urged that this complaint requires to be dismissed with heavy cost as the complainant has not come out with clean hands and he has agitated his grievances against the resolution and the policies of the Co-operative societies for which this forum can not lead any evidence and straightway dismiss this matter because the complainant has come out being office bearer of the opp. society and has sought grievances since,

    he has rented his flat for lodging purpose to the girls and

    7

    8 guest, therefore, complainant who has admittedly stated that he is doing lodging activity qua with he gets the profit, therefore, a complainant does not fall within the definition of the "consumer" under Section 2 (7) of the Act, wherein, the explanation of the commercial purpose is clearly given. Since, the complainant himself is doing c ommercial the activity against wish and resolution passed by society,

    cannot agitate this point before this forum as complainant

    the issue falls under Section 96 of the Co-operative

    has no Societies Act, 1961, therefore, this court the issue. It is also stated that jurisdiction to decide complainant has not joined the proper a

    nd necessary party

    the material fact and has come and deliberately suppressed

    with haphazard drafting. It is submitted

    that opps. Society

    has not taken any

    1S not a service provider and

    consideration but as per the policy, the society has right t

    o collect the charges, which are described in the w

    ritten in detail. It is further submitted that no rights statement India

    under Arts. 14, 15, 16 and 21 of the Constitution of

    that

    are breached. Mr. Joshi for the opp. has s

    ubmitted complainant is not a consumer and if he feels aggrieved by

    any activities of the opp., t

    hen he has statutory remedy,

    under law, therefore, he requires to be heavy costs. 10. Having heard Ms. Priya Sogani, L.A. for the Complainant,

    Mr. Harshvardhan Joshi, L.A. for the opponent and perusing the documents and pleadings relied by both the

    8

    9 parties, at the threshold it pains us that the complainant has deliberately chosen this forum by sheltering the provisions of the Consumer Protection Act, by way of challenging the internal dispute between the members of the society, w

    hich

    is not tenable. Though, the complainant has stated that opp. society has provided the services, therefore, being s ervice provider, the complainant as a member

    has right to file this

    Members have disputed complaint, which is not tenable. placed in the record but the complainant the resolutions to decide the must remember that we are not going

    correctness of any disputes.

    The bone of contention has arisen

    from queer and clear 11. fact that complainant is doing some

    commercial activity by

    his flat to the bachelor girl who are way of renting/ leasing

    studying in the college. The complainant c

    annot plead any the

    breach of the fundamental rights of h

    imself or girls

    who have occupied his flat on

    rental basis. The that he is doing boarding

    complainant himself has stated lodging services, therefore, it

    is amply clear that in a very

    such commercial activities cannot Co-operative societies,

    be carried out under the rules. must remind to p arties that, at the time of filing, we 12.W e clearly told Ms. Priya Sogani, LA. for the complainant that how this complaint is maintainable_ when there is statutory remedy for such Redressal and the complainant

    9

    10 himself engaged in lodging and boarding, collecting the rents from_ such_girls. Since, opps. have _heavily raised objection against renting/ leasing the_ flat of the complainant_to the collegian_girls, the dispute _arose between the members of the society. We clearly explained her that this would not be maintainable, however, Mr Priya Sogani, L.A. at the time of first day of filing insisted

    toi ssue notices to the opp. and submitted that any Co-

    operative societies can move before the consumer forum but we also explained her as to how the complainant can dot he boarding and lodging which is purely a commercial activity which debars from being the consumer. However, on her insistence, we issued notice and heard both the parties at length.

    is made clear that we have not dwelt upon the merits

    in 13. It the present case. In the complaint it is purely a dispute

    between the members of Ratna Paradise Housing Co- operative Society and the complainant can well agitate h

    is

    view of point by sheltering the remedy available to him. I

    n lodging and boarding activities of the complainant, we hold that complainant himself is not a consumer and has

    deliberately and falsely chosen to file this complaint challenging the activities oft he opp. and demanding huge

    damage to which we are pained. Therefore, we firstly hold that complainant is not a consumer within the ambit of the

    Act and has also statutory remedy under other law and

    10

    11 since this is dispute between the members of the society against each other, we cannot decide the issue and hold that we have no jurisdiction to decide the dispute. Therefore, this complaint requires to be dismissed with

    costs by passing the following final order. ORDER ) This complaint stands dismissed with costs quantified Rs. 5,000/- (Rupees Five Thousand Only). The costs to be deposited in this Commission within 10 (Ten) days from

    today, and after being deposited, amount shall be disbursed in equal portion to the opps. members.

    ii) Copy of the judgment be given to the parties free of charge.

    Pronounced in the open Court on this 05" January, 2022. (Jigar P. Joshi) D. T. Soni)

    Member President CDRC, CDRC, Gandhinagar Gandhinagar. Pruthvisinh

    11

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    MR. YOGESH KANTILAL ... v. RATNA PARADISE HOUSI...
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