Lucknow Development Authority v. M.K. Gupta

Facts

• Lucknow Development Authority (a government statutory body) constructed housing for allottees
• Buyers complained of deficient construction, delays, and defective flats
• LDA argued housing construction by a public authority was not a "service" under the Consumer Protection Act (CPA) 1986
• LDA contended consumer forums had no jurisdiction over statutory bodies

Issue

1. Whether "service" in the Consumer Protection Act 1986 covers housing construction by a statutory development authority.

Held

• The Consumer Protection Act is social welfare legislation enacted to protect consumers from exploitation
• As a beneficial statute, its provisions must be read broadly
• "Service" includes any service of any description available to potential users
• Housing construction for allottees is a service under the CPA
• The fact that the provider is a statutory authority does not remove it from the Act's scope

Ratio Decidendi

The Consumer Protection Act, as beneficial legislation, receives the widest possible construction. No entity escapes consumer protection merely because it is governmental or statutory in nature. Where a statute exists to protect a class (consumers), its scope will be read to cover all providers, public or private.