Order Name: Anil Khemchand Advani and Anr. vs Sunmist Cooperative Housing Society Ltd.
Case No.: Second Appeal No. 25 of 2025
The National Consumer Disputes Redressal Commission (NCDRC) in New Delhi recently instructed the State Consumer Disputes Redressal Commission in Karnataka to re-evaluate a case. This directive was influenced by a pivotal decision in the 2001 case of Smt. Kalawati and Ors. vs M/s United Vaish Cooperative Thrift and Credit Society Ltd., where it was established that members of a co-operative society are distinct entities and can be recognized as ‘consumers’ in disputes against the society.
Background:
The appellants initially faced rejection from the State Commission, which dismissed their first appeal on the grounds that there was no ‘consumer-service provider’ relationship between them and the Sunmist Cooperative Housing Society. This decision led the appellants to approach the NCDRC for a second appeal.
The appellants argued that, as per the 2001 decision, members of a co-operative society have the right to be treated as consumers. They also pointed out that the District Commission wrongly referred to the Consumer Protection Act, 1986, instead of the correct 2019 Act. Furthermore, they emphasized that the Societies Act does not prevent members from filing consumer disputes, likening the separation between a member and society to that between a shareholder and a company.
NCDRC’s Observations:
The NCDRC sided with the appellants, determining that the State Commission must reassess the case, considering the precedent set by the 2001 decision. Consequently, the previous order by the State Commission was overturned, and the second appeal was concluded.
Takeaway:
This ruling underscores the important principle that members of a co-operative society can be regarded as consumers. This affirms their right to raise disputes against the society, reinforcing consumer rights within co-operative frameworks.
