Failure To Obtain ``OC`` Is A ``Deficiency In Service``

The Supreme Court of India, in a recent case of Samruddhi Cooperative Housing Society , has held that failure in obtaining Occupancy Certificate (OC) on part of the Developer is a ``Deficiency in Service`` within the meaning of Section 2(1)(g) the Consumer Protection Act, 1986; and that continuous failure of such nature gives a continuing cause of action. This update briefly analyses this Supreme Court judgment.

FACTS:

• Members of the Appellant, i.e. Samruddhi Cooperative Housing Society Limited (Society) , had booked the flats in the building proposed by the Respondent, i.e. Mumbai Mahalaxmi Construction Private Limited (Developer) in the year 1993. Possession was offered by the Developer to the members of the Society in the year 1997. However, the Developer failed to obtain the OC from the municipal authorities which amounted to the breach of Section 6 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and