Comment on Member of co-operative society is Consumer by Sanjay V Sheth.

Dear Sirs,

My Question is as under:

I am a member of a registered Cooperative Housing Society in Mumbai. My society is undergoing the process of redevelopment of the society buildings for which it has appointed a Project Management Consultant (PMC). This PMC has failed in providing his duty-bound services as per Maharashtra Cooperative Societies Act 1960 and its amendments. PMC could do this in connivance with the Managing Committee of the society. Please provide me past precedents stating that PMC is a service provider to the society and also to individual member of the society under CPA 1986. Also sir, I am looking for any such precedents in which it is stated as under:

When a PMC is taken to the court under CPA 1986 and other acts in Consumer Courts, The jurisdiction will depend on the MARKET TRENDS OF CHARGES OTHER PMC ARE CHARGING TO THE SOCIETY and not by the charges existing PMC has charged to the society. The point is: This PMC has failed in providing the services. NOW, if the court rules against this PMC, then the society will have to appoint an another PMC who will charge as per the market prices and not as per the charges charged by old PMC. Old PMC has had undercut his prices in connivance with the Managing Committee of the society so as to bag the contract. Once the PMC got the appointment letter, his colors changed. He lacked in his services and hence I as a member of the society had to knock the doors of Consumer Court.

My Question is: Can I get precedent in which jurisdiction is decided on the prevailing Market Prices of the services available in market and not by the charges existing PMC has charged. There is a reason for this argument. The reason is: In the event of the society appointing a NEW PMC if court rules against the Old PMC, the society has to pay to New PMC as per market Norms. Hence, can I decide jurisdiction of this case as per the AMOUNT, PREVAILING IN MARKET FOR THE CHARGES TO BE PAID TO ANY PMC….? Hence, can I also make this AMOUNT as my prayer of reliefs I will be seeking from the Court?

Secondly, are there any precendet or provision in CPA 1986 that a service provider can be held guilty for charging exhorbitantly LOWER than the prevailing market prices?

Thanks in Advance for your patient in reading my long question….

Thanks Again

Sanjay V Sheth

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