The West Bengal State Consumer Disputes Redressal Commission affirmed that a subsequent purchaser qualifies as a consumer under the Consumer Protection Act, 2019 and imposed a joint-and-several duty on the developers and land-owners to execute the deed of conveyance, award compensation and set a strict compliance timeline.
Background & Facts
The Dispute
The complainants, a group of individuals led by Smt. Krishna Sen, entered into a sale agreement on 4 February 2019 for a flat and garage in Kolkata. The agreement was executed with multiple opposite parties, including the developers and the land-owners. The complainants paid the full consideration of Rs 67 lakhs, took possession of the flat, and thereafter demanded that the opposite parties execute and register the deed of conveyance.
Key Facts
- 25 September 2010: An earlier purchaser entered into an agreement for sale of the same flat with the developers and owners.
- 4 February 2019: The earlier purchaser cancelled the 2010 agreement; a cancellation agreement was executed on the same day.
- 4 February 2019: The complainants executed a fresh agreement for sale and paid Rs 62 lakhs by cheque No. 573790 drawn on State Bank of India, Hatibagan Branch, with the balance of Rs 5 lakhs paid to the developers, completing the total consideration of Rs 67 lakhs.
- Possession of the flat was handed over to the complainants shortly thereafter.
- 18 June 2024: The complainants sent an advocate’s letter to the opposite parties requesting execution and registration of the deed of conveyance; no response was received.
- The complainants filed the present consumer complaint seeking (i) execution and registration of the deed, (ii) a copy of the completion certificate, (iii) compensation of Rs 1 lakh, and (iv) litigation costs of Rs 25,000.
Procedural History
- Consumer Complaint No. SC/19/CC/79/2024 filed before the State Consumer Disputes Redressal Commission, West Bengal (date of filing not specified).
- Ex parte hearing was conducted; arguments were recorded on the record.
- The order was pronounced on 20 August 2026.
Parties' Positions
- Complainants (through counsel Madhuparna Dey) relied on M/s. Laureate Buildwell Private Limited v. Charanjeet Singh (2021) to argue that a subsequent purchaser is entitled to the same reliefs as the original allottee, including interest on refund and compensation for delay.
- Opposite Parties did not file a written response; the Commission noted the absence of any defence.
Relief Sought
- Execution and registration of the deed of conveyance in favour of the complainants.
- Supply of the completion certificate.
- Compensation of Rs 1 lakh for deficiency of service.
- Litigation costs of Rs 25,000.
- Compliance within eight (08) weeks from the date of the order.
The Legal Issue
What is the precise legal question the Commission had to resolve regarding (i) whether the complainants qualify as “consumers” under Section 2(7) of the Consumer Protection Act, 2019, and (ii) the extent of the opposite parties’ liability to execute the deed of conveyance and pay compensation for deficiency of service?
Arguments Presented
For the Complainant
- Cited M/s. Laureate Buildwell Private Limited v. Charanjeet Singh to establish that a subsequent purchaser steps into the shoes of the original allottee and is entitled to all reliefs under the Act, including interest on refund and compensation for delay.
- Emphasised that the deed of conveyance remained unexecuted despite possession being handed over, constituting a deficiency of service under Section 2(11).
- Relied on Section 35(1)(a) to seek a direction for specific performance of the deed.
For the Respondent
- No substantive written defence was recorded; the Commission noted the absence of any counter-argument.
The Court's Analysis
The Commission first examined the definition of “consumer” under Section 2(7), which includes any person who buys any goods or hires any service for consideration, irrespective of the purpose of the purchase. By referencing Laureate Buildwell, the Commission held that a subsequent purchaser who acquires a flat after the original agreement is cancelled falls squarely within this definition.
"The complainant is a ‘consumer’ within the ambit of Section 2(7) of the Consumer Protection Act, 2019."
The Commission then turned to the factual matrix: the complainants had paid the full consideration, taken possession, and yet the opposite parties had failed to execute the deed of conveyance despite repeated requests, including the advocate’s letter dated 18 June 2024. This omission was characterised as a “deficiency of service” under Section 2(11).
Applying Section 35(1)(a), the Commission exercised its power to direct specific performance, ordering the opposite parties to execute and register the deed and to furnish the completion certificate. The compensation of Rs 1 lakh was calibrated as a reasonable amount for the inconvenience and loss suffered, while the litigation cost of Rs 25,000 was awarded to defray the complainants’ expenses.
The Commission also imposed a strict compliance timeline of eight weeks, underscoring the principle that orders under the Act must be implemented promptly to give effect to consumer rights.
The Verdict
The Commission allowed the consumer complaint ex parte. All opposite parties were jointly and severally directed to (i) execute and register the deed of conveyance in favour of the complainants, (ii) supply the copy of the completion certificate, (iii) pay compensation of Rs 1,00,000, and (iv) pay litigation costs of Rs 25,000. All directions are to be complied with within eight (08) weeks from the date of the order.
What This Means For Similar Cases
Subsequent Purchasers Are Consumers
- Practitioners must recognise that a buyer who steps into a cancelled agreement is a consumer under Section 2(7) and can invoke the full spectrum of remedies under the Act.
- The Laureate Buildwell precedent reinforces that the class of “consumer” is expansive and fact-dependent.
Joint and Several Liability for Execution
- Developers, land-owners and any other parties to the original sale are jointly liable for executing the deed of conveyance.
- Failure to register the deed constitutes a deficiency of service, attracting compensation and cost awards.
Strict Compliance Timelines
- Orders under Section 35(1)(a) may prescribe specific time-frames; non-compliance can invite contempt proceedings.
- Lawyers should advise clients to seek clear compliance dates in their pleadings to ensure enforceability.
