Sanjeev Dudhat (Lawyer) 04 September 2012

Whether consumer or not?

A not so well educated housewife now single [husband has died] entered into a development agreement of a open plot belonging to her husband. The developers initially agreed to pay her merely Rs. 2,00,000/- . Later on they made her a partner in their construction firm having 22% share in the profit. After executing the power of attorney and development agreement she received Rs. 2,00,000/- . However, there is no accounting to profit and loss. Instead, she was offered one flat in the construction. However, the said partners/ developers made no agreement for the said flat. Therefore, she does not have a title to the said flat.

1. In this situation where she is a partner in the construction company and also been allotted a flat as her consideration, can such woman claim to be a consumer and file a dispute in the consumer redressal forum against her two partners claiming herself to be a consumer as well?

2. Are there any relevant citations, on such type of a situation?

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4 Replies

Adv Archana Deshmukh (Practicing Advocate) 04 September 2012

She cannot be said to be a consumer of the development firm. If she has any grievence against the other partners in respect of accounts and her share of profits, the appropriate remedy would be to file a civil suit against them for rendition of accounts and claiming her share in the profits.

stanley (Freedom) 14 September 2012

A partner can never be called a consumer in a partner ship firm as she is a part and parcel of the partnership agreement

1.A partnership agreement is an agreement where in they become liable to both profit and loss .

2.When the power of attorney has been handed over to the other partners for execution of the development /Finances for raw materials /labour etc it is based on trust . If she wanted to she should not have given the power of attorney only for the issues of cheques or bank transcations and should involved herself personally into it .

3. In the absence of a profit and loss balance sheet and no auditing being carried out on what basis can the conclusion be drawn that she is a partner to only a share of 22 % of the profit and she is not liable for the loss part of it .

4.Even if a civil suit is filed the other partners would argue that the value of the flat has been adjusted towards the profit and loss as well as the token of 2 lacs .

5. I presume she should be happy with what she has rather than wasting her time and spending her money on lawyers fees etc .