ASHOK CHANDRA VARSHNEY vs MADHYA PRADESH HOUSING BOARD

BOTH these appeals are being disposed of by one order because the facts and circumstances of the two cases and issues under consideration are exactly identical in both these cases.

BOTH these appeals are filed against the order dated 23.7.1997 passed by District Consumer Disputes Redressal Forum in their Case Nos. 319 and 365 of 1995 wherein the District Forum has held that the dispute regarding escalation of cost or pricing policy is beyond the jurisdiction of the District Forum. Arguments of both the parties heard and perused the records of the case.

The dispute in the instant cases is not "pricing policy" or simple matter of escalation of cost in view of specific statement in the advertisement itself that the cost may exceed upto 10%, meaning thereby strict commitment that the cost shall not escalate beyond 10% of quoted price. In their reply the respondent Housing Board has not given any reasonable cause for escalation of price by about 30%. The respondent has not refuted this contention also of the complainant that their specific commitment was that the price shall not exceed by 10%. This clearly amounts to "unfair trade practice". According to Section 2(i)(r) of the Consumer Protection Act "unfair trade practice" includes following trade practice: "(2) Permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisement. Explanation-For the purposes of Clause (2), Bargaining price means - (a) A price that is stated in any advertisement to be bargain price, by reference to an ordinary price or otherwise; or (b) A price that a person who reads, hears or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold.

AS such we allow these two appeals and set aside the order of the District Forum only in respect of escalation of cost and hereby direct that the respondent-Housing Board shall refund to the appellant/complainant the amount recovered from them in excess of 10% of the cost quoted in the advertisement alongwith interest at the rate of 15% from the date of payments till date of refund. No order as to costs. Appeals allowed.