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Supreme Court of India

INDIAN MACHINERY COMPANYversusM/S. ANSAL HOUSING & CONSTRUCTION LTD.

Citation
2016 INSC 94
Decided
27 January 2016

Holding

A second complaint is maintainable as the consumer dispute rules do not contain a provision analogous to Order IX Rule 9(1) of the CPC that would bar a fresh suit after a default dismissal.

Summary

The appellant Indian Machinery Co. filed a second complaint before the District Forum under the Consumer Protection Act, 1986 after its first complaint was dismissed for default. The National Consumer Disputes Redressal Commission held the second complaint non‑maintainable, invoking a rule analogous to Order IX Rule 9(1) of the CPC. The Supreme Court examined the earlier decision in New India Assurance Co. Ltd. v. R. Srinivasan, which observed that the consumer dispute rules contain no provision barring a fresh complaint after a default dismissal. Consequently, the Court held that the second complaint was permissible provided the appellant explained the earlier default. The order of the National Commission was set aside and the matter remitted to it for adjudication on merits, and the appeal was disposed of.

Issues considered

  • Whether a second complaint to a District Forum under the Consumer Protection Act, 1986 is maintainable when the first complaint was dismissed for default or non‑prosecution.

Legislation cited

Subjects

Consumer Protection Actsecond complaintdefault dismissalDistrict ForummaintainabilitySupreme Courtprocedural law

Judgment

                         [2016] 3 S.C.R. 489


                 INDIAN MACHINERY COMPANY                              A

                                 v.
        M/S. ANSAL HOUSING & CONSTRUCTION LTD.
                    (Civil Appeal No. 557of2016)
                                                                       B
                         JANUARY 27, 2016
         [MADAN B. LOKUR AND R.K. AGRAWAL, JJ.]

       Consumer Protection Act, 1986: Whether second complaint
to the District Forum under the Act is maintainable when the first     c
complaint was dismissed for default or non-prosecution - it was
held in R. Srinivasan case that the case not decided on merits and
dismissed in default of non appearance of the complainant cannot
be overlooked and therefore it would be permissible to file a second
complaint explaining why the earlier complaint could not be pursued
and was dismissed in default - There is no rule similar to Order IX    D
r.9(1) - In view of decision rendered in R. Srinivasan case, second
complaint filed by appellant was maintainable on the facts of this
case - Matter remitted to National Commission for adjudicating the
dispute on merits - Code of Civil Procedure, 1908 - Or.IX r. 9(1).
                                                                       E
        New India Assurance Co. Ltd. v. R. Srinivasan (2000) 3
        sec 242 - relied on.
                        Case Law Reference
        (2000) 3 sec 242        relied on      Para5
                                                                       F
        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 557 of
2016.
       From the Judgment and Order dated 24.05.2013 of the National
Consumer Disputes Redressal Commission New Delhi in Revision
Petition No. 1931 of2013.
                                                                       G
      Amarendra Saran, Sr. Adv., Shaad Anwar, Subhash Chandra Jain,
Advs. for the Appellant.
       Bhargava V. Desai, Kapil Kher, Ms. Saumya Mehrotra, Advs.
for the Respondent.
                                                                       H
                               489
490             SUPREME COURT REPORTS                           [2016] 3 S.C.R.


A           The following order of the Court was delivered
                                      ORDER
             I. Leave granted.
            2. We have heard learned counsel for the pa1iies.
B           3. The only question that has arisen in this appeal is whether a
      second complaint to the District Forum under the Consumer Protection
      Act, 1986 is maintainable when the first complaint was dismissed for
      default or non-prosecution.
             4. The National Commission has taken the view in the impugned
c     order that the second complaint would not be maintainable.
              5. Our attention has been drawn to a decision of this Court in
      New India Assurance Co. Ltd. Vs. R. Srinivasan [(2000) 3 SCC 242]
      wherein this precise question had arisen as mentioned in paragraph 5 of
      this decision. It is mentioned in that paragraph that the only question is
      that in view of the dismissal of the first complaint filed by the respondent
D
      therein, a second complaint on the same facts and cause of action would
      not lie and it ought to have been dismissed as not maintainable.
              6. While dealing with this issue, this Court held in paragraph 16
      as follows:

E           "This Rule [Rule 9(6) of the Tamil Nadu Consumer
            Protection Rules, 1988] is in identical terms with sub-rule
            (8) of Rule 4 and sub-rule (8) of Rule 8. Under this sub-
            rule, the appeal filed before the State Commission against
            the order of the District Forum, can be dismissed in default
            or the State Commission may in its discretion dispose of it
F           on merits. Similar power has been given to the National
            Commission under Rule 15(6) of the Rules made by the
            Central Government under Section 30(1) of the Act. These
            Rules do not provide that ifa complaint is dismissed in default
            by the District Forum under Rule 4(8) or by the State
G           Commission under Rule 8(8) of the Rules, a second
            complaint would not lie. Thus, there is no provision parallel
            to the provision contained in Order 9 Rule 9( 1) CPC which
            contains a prohibition that ifa suit is dismissed in default of
            the plaintiff under Order 9 Rule 8, a second suit on the
            same cause of action would not lie. That being so, the rule
H           of prohibition contained in Order 9 Rule 9( I) CPC cannot
INDIAN MACHINERY COMPANY v. M/S. ANSAL HOUSING &                               491
               CONSTRUCTION LTD.

       be extended to the proceedings before the District Forum                A
       or the State Commission. The fact that the case was not
       decided on merits and was dismissed in default of non-
       appearance of the complainant cannot be overlooked and,
       therefore, it would be permissible to file a second complaint
       explaining why the earlier complaint cou Id not be pursued
                                                                                B
       and was dismissed in default."
      7. We have also not been shown any rule similar to Order IX,
Rule 9( I) of the Code of Civil Procedure, 1908. That being so, and in
view of the decision rendered by this Court, with which we have no
reason to disagree, we are of the opinion that the second complaint filed
by the appellant was maintainable on the facts of this case.
                                                                                c
      8. Under the circumstances, we set aside the order passed by
the National Commission and remit the matter back to the National
Commission for adjudicating the disputes on merits.
       9. The appeal is disposed of in view of the above.                       D


Devika Gujral                                            Appeal disposed of.


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