Name: Vikas Govind Ganjave

Roll No: UM14081

Subject: Business Law
Assignment: News report from legal perspective.
News: Forum orders housing society to pay part of repair sum for leakage in
flat.
Newspaper: The Times of India (Mumbai), Jul 23 2014


Key Words: Sufficient consideration, Contract Law
FACTS
Manohar Ghansharamani of Rishi Dayaram Giduaml CHS where he has been residing with
his wife and daughter since 1977, his flat had a persistent problem of water leakage as the
water tank of the building is situated on the top of his roof. Ghansharamani feared that the
excessive leakage would result in a short circuit.
ISSUE
Mr.Ghansharamani complained to the Additional Mumbai Suburban District Consumer
Disputes Redressal Forum that despite repeated requests, the society did not pay heed and
nothing was done even after the deputy registrar, co-operative housing society, gave
necessary directions to the housing society. Mr.Ghansharamani claimed Rs 51,900 which he
spent to repair the damage as well as compensation. The society said Ghansharamani was in
the habit of making false allegations against the society office-bearers. And it claimed that
the condition of the flat was alright and it was in a normal state of wear and tear as found in
such an old building.
HELD
The forum said Ghansharamani's claim was well-supported by documentary evidence and
photos. We are also of the view that the society has failed to pay attention towards
complaint made by the complainant by deprecating him as quarrelsome. We are of the view
that the complainant has proved deficiency of service on the part of the opponent.
Section 2 (d), The Indian Contract Act, 1872
When, at the desire of the promisor, the promise or any other person has done or abstained
from doing, or does or abstains from doing or promises to do or abstain from doing
something, such act or abstinence or promise is called a consideration for the promise.

Other Definitions:
Blackstone: Consideration is the recompense given by a party contracting to the other.
Pollock: An act of forbearance of one party or the promise thereof is the price for which the
promise of the other is bought, and the promise thus given for value is enforceable.

Under Section 25(3) of the Indian Contract Act, Agreement without consideration, void,
unless it is in writing and registered or is a promise to compensate for something done or is a
promise to pay a debt barred by limitation law.
Performance of the conditions of proposal, for the acceptance of any consideration for a
reciprocal promise which may be offered with a proposal, is an acceptance of the proposal. In
so far as the proposal or acceptance of any promise is made in words, the promise is said to
be express. In so far as such proposal or acceptance is made otherwise than in words, the
promise is said to be implied.
Implied terms:
A contract can be implied and it is very clear from section 9 of the Contract Act, but it is a
fundamental principle of law that the court should not make a contract for the parties. A
contract implied in fact requires meeting of minds. The court should refuse to read an implied
term into a contract which is silent on the point or did not clearly indicate the nature of the
term. However, when the stipulations are clear and in contemplation of the parties or which
necessarily arise out of the contract between the parties, they will be implied; State of
Maharashtra v. Saifuddin Mujjaffarali Saifi, AIR 1994 Bom 48.
Hence holding a housing society guilty of deficiency in service for not paying heed to a
senior citizen's plea for help despite a severe leakage problem in his flat, a consumer forum
has directed the society to pay 50% of the repair amount. The forum, however, denied the
plea for compensation while observing that running the society was a voluntary service.
The forum said, Since the office-bearers are devoting their services without charging
anything to the society, if the amount of compensation is granted against the society , then it
would be an additional burden on the members of the society and therefore our conscience
does not permit us to burden the members of the society by awarding compensation against
the society.
CONCLUSION
Rishi Dayaram Giduaml CHS, the society has agreed to bear 50% of the costs.