Discussion
Whether a landowner who enters into a Joint Development Agreement with a builder, contributing land in exchange for 50% of the developed property and a monetary deposit can file a complaint under the Consumer Protection Act, 2019 alleging construction defects and delay ? Which of the following statements is most accurate ?
Answer: C
The key gives The landowner is not a consumer as the transaction constitutes a commercial joint venture.
Under Section 2(7) of the Consumer Protection Act, 2019 a consumer is a person who buys goods or hires services for consideration, but not one who does so for a commercial purpose. In the agreement described, the landowner does not pay the builder for construction. He contributes his land as capital and takes a 50% share of the developed property plus a deposit, so both parties share in the outcome of a profit-making venture. On that reading he is a co-venturer, not a person hiring a service, and his remedy lies in contract, not before a consumer commission.
The other options decide the point on a single feature, such as proof of profit motive, who did the building, or the existence of defects, instead of the nature of the transaction, which is what the definition turns on.
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