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HAS THE APEX COURT REMOVED THE LIMITATION BAR IN CONSUMER MATTERS

HAS THE APEX COURT REMOVED THE LIMITATION BAR IN CONSUMER MATTERS

(Law on limitation)

 

The Supreme court Bench comprising Justices Madan B Lokur and PC Pant was hearing two appeals filed by National Insurance Company against judgment and order passed by the National Consumer Disputes Redressal Commission whereby it ordered the Insurance Company to pay an amount of Rs. 21 lakh to Hindustan Glass.It is contended on behalf of Insurance Company that in terms of Section 24-A of the Act, the claim made by the insured was barred by limitation since the complaint was filed with the National Commission on 13th August, 1996 while the loss or damage had occurred on 6th August, 1992.Hence  the National Commission could not have admitted the complaint since it was filed beyond the stipulated period of two years from the date on which the cause of action had arisen.

But the bench rejected the contention and upheld the order of NCDRC.. In a significant judgment Supreme Court on Friday held that provision of limitation in the Consumer Protection Act cannot be strictly construed to disadvantage a consumer

Supreme court held that in a dispute concerning a consumer, it is necessary for the courts to take a pragmatic view of the rights of the consumer principally since it is the consumer who is placed at a disadvantage vis-à-vis the supplier of services or goods

“A beneficent legislation in the form of the Consumer Protection Act, 1986 was enacted by Parliament. The provision of limitation in the Act cannot be strictly construed to disadvantage a consumer in a case where a supplier of goods or services itself is instrumental in causing a delay in the settlement of the consumer’s claim”,

As per Section 24A of the Consumer Protection Act.1986 the District Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen.

But a complaint may be entertained after the period specified above, if the complainant satisfies the District Forum, the State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint within limitation.

 Provided that no such complaint shall be entertained unless the National Commission, the State Commission or the District Forum, as the case may be, records its reasons for condoning such delay

 

As a matter of law, the consumer forum must deal with the complaint on merits only if the complaint has been filed within two years from the date of accrual of cause of action and if beyond the said period, the sufficient cause has been shown and delay condoned for the reasons recorded in writing. In other words, it is the duty of the consumer forum to take notice of Section 24A and give effect to it. If the complaint is barred by time and yet, the consumer forum decides the complaint on merits, the forum would be committing an illegality and, therefore, the aggrieved party would be entitled to have such order set aside.

This is what Supreme Court has so far viewed in various cases

Anshul Aggarwal v. New Okhla Industrial Development Authority, IV (2011) CPJ 63 (SC), laid down that:

 “It is also apposite to observe that while deciding an application filed in such cases for condonation of delay, the Court has to keep in mind that the special period of limitation has been prescribed under the Consumer Protection Act, 1986 for filing appeals and revisions in consumer matters and the object of expeditious adjudication of the consumer disputes will get defeated if this Court was to entertain highly belated petitions filed against the orders of the Consumer Foras.”

In R.B. Ramlingam v. R.B. Bhavaneshwari, I (2009) CLT 188 (SC) =I (2009) SLT 701=2009 (2) Scale 108, it has been observed:

 “We hold that in each and every case the Court has to examine whether delay in filing the special appeal leave petitions stands properly explained. This is the basic test which needs to be applied.  The true guide is whether the petitioner has acted with reasonable diligence in the prosecution of his appeal/petition.”

  In Ram Lal and Others v. Rewa Coalfields Ltd., AIR1962 Supreme Court 361,

 It has been observed;

 “It is, however, necessary to emphasize that even after sufficient cause has been shown a party is not entitled to the condonation of delay in question as a matter of right.  The proof of a sufficient cause is a discretionary jurisdiction vested in the Court by Section 5.  If sufficient cause is not proved nothing further has to be done; the application for condonation has to be dismissed on that ground alone.  If sufficient cause is shown then the Court has to enquire whether in its discretion it should condone the delay.  This aspect of the matter naturally introduces the consideration of all relevant facts and it is at this stage that diligence of the party or its bonafides may fall for consideration; but the scope of the inquiry while exercising the discretionary power after sufficient cause is shown would naturally be limited only to such facts as the Court may regard as relevant.”

  In Union of India and Another v. British India Corporation Ltd. and Others, (2003) 9 SCC 50, while dealing with an aspect of limitation for an application for refund prescribed in Business Profits Tax Act, 1947, this Court held that the question of limitation was a mandate to the forum irrespective of the fact whether it was raised or not, the forum must consider and apply it.

  In Haryana Urban Development Authority v. B.K. Sood, Act, 1986 (2006) 1 SCC 164, this Court while dealing with the same provision viz., Section 24A of the held:

 Section 24-A of the Consumer Protection Act, 1986 (referred to as the Act hereafter) expressly casts a duty on the Commission admitting a complaint, to dismiss a complaint unless the complainant satisfies the District Forum, the State Commission or the National Commission, as the case may be, that the complainant had sufficient cause for not filing the complaint within the period of two years from the date on which the cause of action had arisen.

 In a case of Gannmani Anasuya and Others v. Parvatini Amarendra Chowdhary and Others, (2007) 10 SCC 296, 7

"this Court highlighted with reference to Section 3 of the Limitation Act that” it is for the court to determine the question as to whether the suit is barred by limitation or not irrespective of the fact that as to whether such a plea has been raised by the parties; such a jurisdictional fact need not be even pleaded.”

But now the same Supreme Court in its order in April 2017 does not talk of the necessity of condoning the delay by the forum or commission whatever the case may be. It simply says rule cannot be strictly followed.

Does this mean every delayed complaint is necessarily to be admitted?

Certainly not.

Supreme court has only said –rule cannot be strictly followed to the disadvantage of consumer when opposite party has already deprived the consumer by approving claim and delayed it .It clearly means court has to see the circumstances of the case and decide not to the disadvantage of consumer, procedure of condonation of delay is implied and order is in the true spirit of the provisions of the act and very much in tune to the earlier judgments of the apex court.

 

 

 

 

 

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