Maintainability Of Class Actions Under Consumer Protection Act, 1986

Introduction

In a recent Order dated 21 February 2017, the Supreme Court in M/s Amrapali Sapphire Developer Private Limited vs. M/s Amrapali Sapphire Flat Buyers Welfare Association¹ has declined to entertain the realtor's appeal against the order dated 30 August 2016 passed by the National Consumer Disputes Redressal Commission ("NCDRC") in Amrapali Sapphire Flat Buyers Welfare Association vs. Amrapali Sapphire Developers Private Limited². The NCDRC had held that flat owners / allottees, who have a registered association, can directly approach NCDRC against the realtors even in cases where the individual sale consideration paid by the said flat owners / allottees is than Rs One crore (i.e. the pecuniary jurisdiction of the NCDRC) and where there is no commonality in causes of action of the said flat owners / allottees.