Supreme Court Allows Additional Evidence in Consumer Dispute Over Occupancy Certificate and Conveyance Deed. The Court held that documents coming into existence after the appeal must be considered under Order XLI Rule 27 CPC if relevant and not producible earlier despite due diligence.

  • 5
Judgement Image
Font size:
Print

Case Note & Summary

The present civil appeal arose from a consumer dispute between the appellants (developers) and the respondent (cooperative housing society). The appellants were the sons of the original owner who constructed a building and sold flats. The society filed a consumer complaint alleging failure to provide amenities, obtain occupancy certificate, and execute conveyance deed. The District Forum partly allowed the complaint, directing the appellants to obtain occupancy certificate within 3 months, execute conveyance deed within 6 months, and refund certain amounts. Aggrieved, the appellants filed an appeal before the State Commission. During the pendency of the appeal, they applied under Order XLI Rule 27 CPC to produce two documents: a letter from their architect to the Municipal Corporation requesting occupancy certificate, and the Corporation's reply stating that unauthorized enclosures by occupants prevented issuance. The State Commission rejected the application as 'not necessary', and the National Commission upheld this. The Supreme Court found that the documents came into existence after the appeal was filed and were relevant to show that the appellants could not obtain the certificate due to occupants' unauthorized structures. The Court held that the State Commission's order was unreasoned and that the documents satisfied the conditions of Order XLI Rule 27 CPC as they could not have been produced earlier despite due diligence. The Supreme Court allowed the appeal, set aside the orders of the State and National Commissions, and remitted the matter to the State Commission to take the additional documents on record and decide the appeal expeditiously.

Headnote

A) Civil Procedure - Additional Evidence at Appellate Stage - Order XLI Rule 27 CPC - Due Diligence - The appellants sought to produce documents (letter to MCGM and reply) that came into existence after the appeal was filed, which were relevant to show inability to obtain occupancy certificate due to unauthorized structures by occupants - The Supreme Court held that the State Commission's rejection was unreasoned and that the documents were necessary for substantiating the appellants' case - Held that the application should have been allowed as the documents could not have been produced earlier despite due diligence (Paras 3.2-4).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the State Commission and National Commission erred in rejecting the application under Order XLI Rule 27 CPC for producing additional documents that came into existence after the filing of the appeal.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court allowed the appeal, set aside the Interim Order dated 10.12.2015 of the State Commission and the Impugned Order dated 16.03.2018 of the National Commission, and remitted the matter to the State Commission to take the additional documents on record and decide the appeal on merits expeditiously.

Law Points

  • Order XLI Rule 27 CPC
  • additional evidence at appellate stage
  • due diligence
  • relevance of documents
  • consumer dispute
  • occupancy certificate
  • conveyance deed
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (SC) (5) 46

Civil Appeal No. 4628 of 2019 (Arising out of SLP (Civil) No. 26755 of 2018)

2019-05-06

Uday Umesh Lalit, Indu Malhotra

Jiten K. Ajmera & Anr.

M/s Tejas Cooperative Housing Society

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against order of National Consumer Disputes Redressal Commission rejecting application for additional evidence in a consumer dispute.

Remedy Sought

Appellants sought to produce additional documents in pending appeal before State Commission to show inability to obtain occupancy certificate due to unauthorized structures.

Filing Reason

Appellants challenged the rejection of their application under Order XLI Rule 27 CPC for leading additional evidence.

Previous Decisions

District Forum partly allowed consumer complaint; State Commission rejected application for additional evidence; National Commission upheld rejection.

Issues

Whether the State Commission and National Commission erred in rejecting the application under Order XLI Rule 27 CPC for producing additional documents that came into existence after the filing of the appeal.

Submissions/Arguments

Appellants argued that the documents (letter to MCGM and reply) came into existence after the appeal was filed and were relevant to show they could not obtain occupancy certificate due to unauthorized structures by occupants. Respondent opposed the application, and the State Commission held the documents were 'not necessary'.

Ratio Decidendi

Under Order XLI Rule 27 CPC, a party can produce additional evidence at the appellate stage if it establishes that despite due diligence, such evidence was not within its knowledge or could not be produced at the time of the decree. Documents that come into existence after the appeal are relevant and must be considered if they are necessary for substantiating the party's case.

Judgment Excerpts

Under Order XLI Rule 27, CPC a party can produce additional evidence at the appellate stage, if it establishes that notwithstanding the exercise of due diligence, such evidence was not within its knowledge, or could not even after the exercise of due diligence, be produced by it at the time when the decree appealed against was passed. These documents are of relevance to establish that the Appellants are not in a position to obtain the Occupancy Certificate from the MCGM until the unauthorized structures, which are in violation of the approved plans, are removed.

Procedural History

District Forum partly allowed consumer complaint on 27.02.2013. Appellants filed First Appeal No. 85 of 2013 before State Commission. On 15.01.2014, appellants filed application under Order XLI Rule 27 CPC for additional evidence. State Commission rejected application on 10.12.2015. Appellants filed Revision Petition No. 175 of 2016 before National Commission, which was dismissed on 16.03.2018. Appellants then filed SLP (Civil) No. 26755 of 2018, which was converted to Civil Appeal No. 4628 of 2019.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order XLI Rule 27, Section 107(1)(d)
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Additional Evidence in Consumer Dispute Over Occupancy Certificate and Conveyance Deed. The Court held that documents coming into existence after the appeal must be considered under Order XLI Rule 27 CPC if relevant and not produ...
Related Judgement
Supreme Court Earnest Money Forfeiture – Contractual Obligations – One-Sided Agreements – Consumer Protection