Wednesday, October 16, 2024

Written notes of Argument on exparte vacating petition in Consumer Case

 

District : South 24 Parganas

Before the Hon’ble District Consumer Disputes Redressal Forum, at Baruipur, South 24 Parganas.

 

                                      CC / 118 / 2015

 

                                                          In the matter of :

                                                          Pijush Kanti Gayen

                                                                             _________Complainant

-      Versus –

Bindhachal Construction, and others.

                   __________Respondents

 

Written Notes of Argument

On petition for vacating exparte order

Facts :

 

1.   On 14-03-2016, the Hon’ble Forum passed the following Orders as “Today is fixed for S.R. all the O.Ps. But it appears that case is being proceeded exparte against the O..P. nos. 1 to 7 but complainant has filed one application for amendment to insert the name of O.P. 8 that is why after allowing the said prayer for amendment we have inserted the name of Subhasish Mondal who is a necessary party in this case. So, the S/R was served to Subhasish Mondal but he did not appear. Accordingly case will run against Subhasish Moncal in exparte. It appears that O.P. nos. 2 to 7 file one application for allowing them to file written version which is supported by Vokalatnama. In view of the reported Judgment of the Hon’ble Apex Court in Civil Appeal NO. 8155 A 2001 as well as Hon’ble State Commissio0n under section 22 A of the C.P. Act, this Forum or Bench has no power to review its own order, that is why, exparte order which is running against O.P. nos 1 to 7 cannot be allowed to file any written version and after carefully studying the view of the Hon’ble Supreme Court that only Hon’ble National Commission has power to review the same and in a similar case of Hon’ble State Commission also expressed their views that they have no power, that is why prayer of the O.P. nos. 2 to 7 cannot be accepted at this stage for want of power in view of Section 22 A of the C.P. Act as well as the judgment of the Hon’ble Apex Court as well as hon’ble State Commission. Now we find that complainant has filed one application under section 13 (3B) of the C.P. Act, with an apprehension that property in dispute may be transferred to the third party in collusion with the O.P. now. 2 to 7. This application is supported by an affidavit. We have nothing to disbelieve the prayer as unfolded under section 13(3B) of the C.P. Act and the Hon’ble Legislature has introduced the said Act only to protect the interest of the Consumer at large by the hands of the unruly O.Ps/developers. Here in the instant case we find that it is the proper time to invoke the power, that is why, let there be an interim order restraining the O.P. nos . 1 to 8 and there men and agents not to transfer the schedule property to any third party fixing 18/04/2016 for exparte evidence and argument , if possible along with petition under section 13 (3B) of the C.P. Act.”

 

2.   That the O.P. no. 8, was not in knowledge of the present proceeding as he was not in receipt of the notice has ever served by the Hon’ble Forum.

 

3.   That the O.P. no. 8, as soon as came into knowledge of the present proceeding from the mouth of the other opposite parties, he took all necessary endavour to submit his written version, and place necessary applications in the present proceeding before the Hon’ble Forum, in the interest of administration of justice.

 

 

4.   That this is much necessary in the interest of equity and substantial justice to vacate the exparte order against the O.P. no. 8, herein, in the interest of administration of justice.

 

5.   That the O.P. no.8, filed and submitted his Written version, a petition for vacating exparte order against him, and one misc. application on maintainability, in the present proceeding, before the Hon’ble Forum.

 

Judicial references as discussed by the Hon’ble Forum :

 

“ In view of the reported Judgment of the Hon’ble Apex Court in Civil Appeal NO. 8155 A 2001 as well as Hon’ble State Commissio0n under section 22 A of the C.P. Act, this Forum or Bench has no power to review its own order, that is why, exparte order which is running against O.P. nos 1 to 7 cannot be allowed to file any written version and after carefully studying the view of the Hon’ble Supreme Court that only Hon’ble National Commission has power to review the same and in a similar case of Hon’ble State Commission also expressed their views that they have no power, that is why prayer of the O.P. nos. 2 to 7 cannot be accepted at this stage for want of power in view of Section 22 A of the C.P. Act as well as the judgment of the Hon’ble Apex Court as well as hon’ble State Commission.”

 

Discussion of Judicial References :

1.    The Hon’ble Supreme Court in its decision rendered in Jyotsana Arvind Kumar Shah & ors Vs. Bombay Hospital Trust, reported in III (1999) CPJ 1 (SC), held that the State Commission has no powers to set aside an exprte order as there is no provision in the Act.

 

2.    Subsequently, the Hon’ble Supreme Court, in its decision rendered in New India Assurance Co. Ltd., Vs. R. Srinivasan , reported in I (2000) CPJ 19 (SC) has held that inherent power is vested upon the Commission to restore the complaint on good cause being shown for non-appearance of the complainant.

 

3.    Subsequently in the decision rendered by the Hon’ble Supreme Court in Rajeev Hitendra Pathan and others Vs. Achyut Kashinath karekar and another  reported in 2007 CTJ 1123 (Supreme Court ) (CP) took a view that when the matter was decided in R. Srinivasan’s case, the bench was not appraised of the earlier decision rendered in  Jyotsana’s case, and accordingly the matter was referred to a larger bench and the matter is still pending.

 

4.    The Hon’ble Supreme Court, rendered in an identical case.   The Apex court in Grindlays Bank Ltd., Vs. The Central Government Industrial Tribunal & Ors. Reported in 1981 L.I.C 155 = AIR 1981 SC 606 = 1980 Supp. SCC 420 in para 6, has held as follows:

 

We are of the opinion that the Tribunal had the power to pass the impugned order if it thought fit in the interest of justice.  It is true that there is no express provision in the Act or the rules framed thereunder giving the Tribunal jurisdiction to do so.  But it is a well-known rule of statutory construction that a Tribunal or body should be considered to be endowed with such ancillary or incidental powers as are necessary to discharge its functions effectively for the purpose of doing justice between the parties.  In a case of this nature, we are of the view that the Tribunal should be considered as invested with such incidental or ancillary powers there is any indication in the statute to the contrary”.  We do not find any such statutory prohibition.  On the  other hand, there are indications to the contrary.”

 

          It is also observed in para 14 as follows:

 

          “There is no finality attached to an exparte award because it is always subject to its being set aside on sufficient cause being shows.”

 

5.    The Hon’ble Supreme Court in R. Srinivasan’s case clearly proceeds to the effect that the power is vested upon the Consumer Fora under the inherent jurisdiction, until a categorical finding is rendered by the larger bench of the Hon’ble Supreme Court  the later decision has to be applied by all the District Fora.

 

6.    The Hon’ble State Consumer Disputes Redressal Commission, Chennai, presented by Hon’ble Justice N. Kannadasan, President, and Hon’ble Member Thiru Pon Gunasekaran, held in suo moto reference : Case 1 / 2008 under Section 24(B) (i) (ii) read with Section 24(B) (II), application by the Madras Consumer Courts Bar Association, as “Prior to 1993, there was no specific provision in the CP Act, with regard to the period of limitation.  Only by Act 50 of 1993, Sec. 24(A) was introduced, wherein a period of two years limitation is prescribed for filing a complaint.  In a given case, if a complaint is dismissed for default, after a period of 2 years from the date of its institution, if the power for restoration is not granted even where sufficient cause is shown, the complainant would not be in a position to file the 2nd complaint.  In such situation, even if a genuine grievance exists for litigant, due to unforeseen reasons, he will not be in a position to seek remedy. When the Rules framed under the Act, views an express power in dismissing the case on default, when the litigant comes forward to show sufficient cause with a an impeccable reasons for his non-appearance, whether redressal agencies would be helpless in the matter or to repeat the words of Lord Denning that it must fold their hands and deny redress, where it is patently due.  In our opinion, we are of the view that refusal to restore even when sufficient good cause is shown, would be a patent miscarriage of justice.  It is only under the said larger principle, the legislature incorporated the provisions in the Civil Procedure Code for a restoration of a suit or appeal.  Eventhough those provisions instricto-sensu are not at all attracted to the consumer jurisdiction, the principles underlying then would be equally attracted for granting redress, in a manifest situation requiring restoration of the lis.  Even otherwise, when the later decision of the Hon’ble Supreme Court in R. Srinivasan’s case clearly proceeds to the effect that the power is vested upon the Consumer Fora under the inherent jurisdiction, until a categorical finding is rendered by the larger bench of the Hon’ble Supreme Court  the later decision has to be applied by all the District Fora.

In the light of the above discussions, we answer the references as follows: 

1.                  The District Forum has got power to restore the complaint which was dismissed for default.

 2.                  The District Forum has got power to set aside the exparte order setting the opposite party exparte.  If a final order is passed on merits, the District Forum has no power to set aside the said decision which is passed on merits.

          The Suo moto reference is disposed of in the above terms.”

Conclusion :

The present petition for vacating exparte order against the Opposite Party no.8, should be allowed in terms of the above discussions and judicial references relied on, in the interest of administration of justice, keeping in mind the words of Lord Denning that it must fold their hands and deny redress, where it is patently due.

Through _______________

 

Advocate for the Opposite Party no.8.

Date : 18th day of April’ 2016.

Place : Baruipur, South 24 Parganas.

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