Supreme Court Restores Consumer Complaint Dismissed on Technicality by NCDRC. The Court held that dismissal for non-filing of rejoinder and evidence was a technicality that defeated the purpose of the Consumer Protection Act, 1986, and that marginal delays should be condoned to ensure substantial justice.

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Case Note & Summary

The appellants, Vibha Bakshi Gokhale and another, filed a consumer complaint before the National Consumer Disputes Redressal Commission (NCDRC) against M/s Gruhashilp Constructions and others, alleging deficiency of service regarding a residential flat booked by them. The complaint was filed in 2016. On 16 November 2018, the NCDRC granted a last opportunity to the appellants to file a rejoinder and evidence within four weeks, failing which the complaint would stand dismissed automatically. The appellants failed to comply within the stipulated time. On 15 February 2019, the NCDRC dismissed the complaint, observing that the appellants had not filed the rejoinder and evidence, and inferred that the delay indicated a lack of merit in the case. The appellants appealed to the Supreme Court. The Supreme Court found that the dismissal was based on a technicality and disregarded the requirements of substantial justice. The Court emphasized that the purpose of the Consumer Protection Act, 1986, is to protect consumers' rights and ensure access to justice. The Court noted that the NCDRC should have condoned the marginal delay instead of dismissing the complaint, especially given the constraints of resources and infrastructure. The Court also held that the inference of lack of merit was unwarranted. Accordingly, the Supreme Court set aside the NCDRC's order, restored the consumer complaint to its file, and directed that the rejoinder and affidavit of evidence, which were ready, be taken on record. The appeal was disposed of without issuing notice to the respondents.

Headnote

A) Consumer Law - Dismissal on Technicality - Substantial Justice - Consumer Protection Act, 1986 - Sections 12, 13 - The NCDRC dismissed the complaint for non-filing of rejoinder and evidence as per a conditional order. The Supreme Court held that such dismissal on a mere technicality defeats the purpose of the Act and the NCDRC should have condoned the marginal delay to ensure substantial justice. (Paras 2-4)

B) Consumer Law - Condonation of Delay - Marginal Delays - Consumer Protection Act, 1986 - Sections 12, 13 - The Supreme Court observed that marginal delays in consumer fora should be condoned, especially when the delay is due to non-availability of resources and infrastructure, and penalizing a bona fide litigant for such delays is harsh. (Para 4)

C) Consumer Law - Inference of Lack of Merit - Unwarranted Inference - Consumer Protection Act, 1986 - The NCDRC inferred that the delay indicated lack of merit in the case. The Supreme Court held this inference unwarranted and that such orders detract from the purpose of the consumer forum. (Para 2)

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Issue of Consideration

Whether the NCDRC was justified in dismissing a consumer complaint on the ground of failure to file rejoinder and evidence within the stipulated time, despite the complaint being pending since 2016 and the delay being marginal.

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Final Decision

The Supreme Court set aside the impugned order of the NCDRC dated 15 February 2019 and restored Consumer Complaint No. 1432 of 2016 to the file of the NCDRC. The rejoinder and affidavit of evidence, stated to be ready, were directed to be taken on record. The appeal was disposed of.

Law Points

  • Substantial justice over technicalities
  • Consumer protection
  • Condonation of marginal delays
  • Purpose of Consumer Protection Act 1986
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Case Details

2019 LawText (SC) (5) 29

Civil Appeal No. 4767 of 2019

2019-05-10

Dr. Dhananjaya Y. Chandrachud, Hemant Gupta

For Appellant(s): Mr. Saurabh Jain, Mr. P.K. Goswami, Mr. S.P. Singh Rathore, Mr. Ashok K. Sharma, Mr. Uday Prakash Yadav, Ms. Anuradha Soni Verma, Mr. Shryansh Aggarwal, Mr. Rajesh Goyal, Mr. H. Arjun, Mr. P. K. Jain, AOR

Vibha Bakshi Gokhale & Anr.

M/s Gruhashilp Constructions & Ors.

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Nature of Litigation

Civil appeal against order of NCDRC dismissing consumer complaint on technical ground of non-filing of rejoinder and evidence.

Remedy Sought

Appellants sought restoration of consumer complaint before NCDRC.

Filing Reason

Appellants alleged deficiency of service by respondents regarding a residential flat.

Previous Decisions

NCDRC dismissed Consumer Complaint No. 1432 of 2016 on 15 February 2019 for non-compliance with conditional order dated 16 November 2018.

Issues

Whether the NCDRC was justified in dismissing the consumer complaint on a technicality without considering the merits? Whether marginal delays in consumer proceedings should be condoned to ensure substantial justice?

Submissions/Arguments

Appellants argued that the dismissal was on a mere technicality and that the rejoinder and evidence were ready. Respondents did not appear as no notice was issued.

Ratio Decidendi

Consumer complaints should not be dismissed on mere technicalities; marginal delays should be condoned to ensure substantial justice, as the purpose of the Consumer Protection Act is to protect consumers' rights and provide access to justice.

Judgment Excerpts

We find that the ground for rejection of the complaint is technical and in disregard of the requirements of substantial justice. The NCDRC should have borne this in mind instead of rejecting the complaint on a technicality. Though the Act stipulates a period for disposing of a consumer complaint, it is also a sobering reflection that complaints cannot be disposed of due to non-availability of resources and infrastructure.

Procedural History

Consumer Complaint No. 1432 of 2016 filed before NCDRC in 2016. On 16 November 2018, NCDRC granted last opportunity to file rejoinder and evidence within four weeks, failing which complaint would stand dismissed automatically. On 15 February 2019, NCDRC dismissed the complaint. Appellants appealed to Supreme Court via Civil Appeal No. 4767 of 2019.

Acts & Sections

  • Consumer Protection Act, 1986:
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