Ref: ER/Press/06/bharvi14.p65

In response to a complaint filed by Consumer Education & Research Society (CERS) and Mahadevbhai C. Patel, Ahmedabad, the Consumer Disputes Redressal Forum, Ahmedabad City, have held Bharvi Co-operative Housing Society, Ahmedabad, and its Chairman, Bhikhabhai Atmaram Patel, jointly and severally responsible for deficiency in service and unfair trade practice.

The Forum directed them to pay Mahadevbhai Rs. 1,500 per month with 9 per cent interest from 2 June 2003 till payment, Rs. 5,000 towards mental agony, and Rs. 5,000 towards costs. It also ordered them to pay Rs. 5,000 to CERS towards cost.

The housing society had allotted to Mahadevbhai, one of its members, a shop on payment of Rs. 96,000 as the price and Rs. 20,000 as the maintenance deposit. Before possession, he was made to believe that all dues of the AEC had been paid whereas it had not paid pending electricity bills worth Rs. 50,313. As a result, the AEC disconnected the power supply to Mahadevbhai’s shop.

He passed on the bill to the Society and its Chairman. But they refused their liability to pay, attributing the dues to the AEC’s “malpractice and inefficiency”. Mahadevbhai approached CERS.

CERS sent a legal notice to the Society and its Chairman, demanding compensation to Mahadevbhai.

Eventually, CERS and Mahadevbhai filed a complaint with the Forum under Section 13(2)(b)(ii) of the Consumer Protection Act, 1986, stating that owing to the non-payment of the outstanding bills, Mahadevbhai could not run his business and had incurred losses.

The Forum observed that the chairman had “failed to take reasonable care” to ascertain that all dues of the AEC had been paid. It accused him of having “evaded” giving possession of the shop for six years, of “unlawful utilisation” of the light connection of the shop without permission, and of intimidating Mahadevbhai by using his office of the chairmanship of the society.

Mr. U. M. Raval presided over the Forum, with Mr. Bharatbhai H. Joshi as its Member.

Date : 05/04/2006

Editor : Pritee Shah
INSIGHT — The Consumer Magazine
Place : Ahmedabad

Opinions, test results and research findings issued through this Press Release cannot be used in any form directly or indirectly for advertising, promotional or commercial purpose.

CONSUMER EDUCATION AND RESEARCH CENTRE
“Suraksha Sankool”, Thaltej, Ahmedabad-Gandhinagar Highway,
Ahmedabad-380 054 (INDIA)
Phone : 079 - 7489945-46, Fax : 079 - 7489947,
E-mail: cerc@cercindia.org, cercindia@gmail.com, Web Site: http://www.cercindia.org