Can’t challenge consumer forum orders in HC: SC

Jehangir B Gai 

Subject:Consumer forum’s order cannot be challenged in a writ petitionBackdrop: The Consumer Protection Act offers a three-tier redressal mechanism for resolution of consumer disputes. The Act provides a comparatively simpler, inexpensive and speedy mechanism for settlement of consumer grievances. If a party is not happy with an order, it can file an appeal before the next level tribunal, constituted under the Act. 
    Sometimes certain manufacturers, traders and service providers try to bypass the statutory channel of appeals. Instead, a writ petition is filed in the HC, challenging the consumer fora orders. The motive being to frustrate the consumer, who would find it costly and tedious to contest the case in HC. 
    In a landmark judgment, the Supreme Court recently ruled that a high court cannot entertain a writ petition against the orders of the consumer fora, for which the law prescribes a statutory channel of appeal.  

 

Case Study: Cicily Kallarackal had filed a complaint against Vehicle Factory. The dispute was ultimately decided by the National Commission in Kallarackal’s favour. Vehicle Factory then filed a writ petition before the Kerala HC, challenging the order. 
    The HC allowed Vehicle Factory’s writ petition and set aside the National Commission’s order. Aggrieved, Kallarackal appealed to the SC, contending that the HC should not to have entertained the writ petition, as the Consumer Protection Act provides that the National Commission’s order could be challenged only before the Supreme Court. Unfortunately, this appeal was not filed in time and there was a delay of three-and-a-half years. 
    The SC refused to condone the delay as it was not satisfied with the excuse given for not having filed the appeal in time. However, considering the importance of the law point raised, the SC decided to adjudicate this issue and lay down the law in respect to filing of writ petitions. 
    The SC observed that a proper channel for appeals is prescribed under the Consumer Protection Act. When the legislature provides a statutory mechanism for appeals to a higher court or tribunal, it would not be proper to permit the parties to bypass such statutory remedy provided by law and instead approach the HC in its writ jurisdiction under Article 226 of the Constitution of India. 
    In view of this finding, the SC held that high courts would not have the jurisdiction to entertain a writ petition in respect of which the law prescribes a remedy by way of appeal. Accordingly, it directed the high courts to exercise caution while entertaining writ petitions. It further directed that this order should be circulated to all the high courts and brought to the notice of all the HC judges. (Order dated August 6, 2012 by the bench of Justices Chauhan and Swatanter Kumar.) Impact: This ruling will save consumers the harassment of needlessly being dragged by the opponent to the HC to frustrate and tire them out. 
    (The author is a consumer activist and has won the government of India’s National Youth Award for Consumer Protection. His e-mail isjehangir_gai@indiatimes.com)

Source:::::: The times of India, 29-04-2013, p.06, 
http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIM&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW

Consumer courts failing to deliver

Maha Has 19k Pending Cases At District Forums, National Figure Stands At 3.5L

Prerna Sodhi TNN 

(Source:::: The Times of India, 29-01-2013, p.14, http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIM&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW&AW=1359520806776)

New Delhi:After being assured by a hospital that the health of the baby in her womb was normal, a woman was shocked to find out that her little one was born without a hand and a kidney. 
    She filed a complaint with the National Consumer Disputes Redressal Commission (NCDRC) hoping justice would be done. She has been waiting for two years now. And joining her in the queue are thousands of others. 
    The country’s eyes may be on criminal cases right now, but consumer courts across India are in a mess like never before. According to data released by NCDRC, over 3.5 lakh cases were pending at various consumer courts till December 21, 2012. Of these, nearly 2.5 lakh are with district consumer forums, 93,839 with state forums and 10,230 with NCDRC. 
    This, when innumerable men and women just don’t file complaints at all, unwilling to go through the hassle of fighting big firms, institutions or companies. 
    Forget bringing down the volumes, some states forums, in fact, registered a significant increase in pending cases last year. In Gujarat, the number with the state forum jumped 44% — from 4,379 in December 2011 to 7,824 in December 2012. Similarly, in Delhi, it went up from 1,195 in December 2011 to 1,579 in December 2012. Experts believe that the statistics clearly reflect a “system working at very slow pace”. 
    Go down to the districts and the story gets worse. In UP, for instance, a staggering 75,722 aggrieved consumers are in queue with their petitions; 12,172 in Gujarat, and 19,249 in Maharashtra. It is 27,828 in Rajasthan. In Delhi, as per NCDRC data dated January 2012, the number of pending cases in district forums stand at 10,340. 
    A retired official of the Delhi state consumer forum who did not wish to be named said, “Even though in the last two years the number of pending cases in district forums has decreased, that decrease has been marginal.” Experts said that to prevent the numbers from rising further courts need to dispose of complaints at the rate they are being filed, which is proving to be tough given the existing pile-up, poor infrastructure and staff crunch. An official at the New Delhi district consumer forum says that on a daily basis they hear, on an average, 140 complaints. They are able to dispose only three. 
    Bejon Misra, a veteran consumer rights activist, said the number of petitions out there is hardly indicative of the amount of unfair practices that people have to endure. “Many just move on,” he said. “To deter these violations, forums should start penalizing companies and asking them why cases come to forums in the first place.” 
    Advocate Ankit Jain said there should be division of cases on a priority basis. 
    “People spend a lot of their hard earned money on real estate projects or insurances only to realize they are being harassed when the time comes to deliver on the promises. Certain cases should be acted upon immediately, as most companies benefit from the delay.”

Give Flat or 1cr to Buyer, Consumer Forum to Bldr.

Rebecca Samervel TNN 

Mumbai: The Maharashtra State Consumer Disputes Redressal Commission has directed a builder to hand over a 712 sq ft flat at Sion within four months or pay Rs 1.04 crore compensation to an ex-serviceman who had booked the flat in 2005, but has not got possession. 
    The commission observed, “Because of the delay in getting possession, complainant is deprived of his dream of having his own house… Rates of real estate have skyrocketed and increased geometrically, the opponents have utilized the hard-earned money of consideration paid by the complainant and one cannot say how long he will have to wait.” 

    Amarjeet Singh Baryam Singh filed the complaint in the commission on July 19, 2011, against M/s Lakadawala Developers Pvt Ltd and its directors, for deficiencyin service. 

    While the flat was booked in August 2005, the agreement was registered in March 2006. Singh paid the entire amount of Rs 24.65 lakh to the builder and construction was to be completed by the end of 2007. He contended that that he tried to contact the builder from time to time but never received possession. Singh alleged that due to this, he was financially overburdened and was undergoing tremendous mental agony. The builder submitted that the property was being developed under the Slum Rehabilitation Scheme and had encountered some trouble. The builder alleged that the building was completed but had to be demolished due to some problems. The firm further contended that as per the agreement, the complainant is entitled to take possession of the flat on completion of the project and if it is delayed, the builder will not be liable. They said that they were willing to hand over possession after completion of the project or alternatively Singh could take a refund. The commission, however, said that the efforts made by the builder look half-hearted. “We are not convinced about the efforts taken by the opponents. Similarly, the complainant cannot wait indefinitely to have his own house,” the commission said. 

    Taking into account the market rate of the property, the commission held that the current value of the flat was Rs 99.27 lakh.

Source:::: The Times of India, 18-01-2013, p.02, http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIM&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW&AW=1358485709575

Maximum consumer complaints filed in city against builders

Rebecca Samervel TNN 

Mumbai: An RTI reply has revealed that the maximum number of complaints received by consumer forums in the Mumbai Metropolitan Region (MMR) pertains to housing. Of 24,278 complaints MMR’s six forums received in roughly the last 15 years, housing leads with 7,499, followed by insurance, which is a distant second with 4,291 complaints. 

    Experts say the reason is skyrocketing housing prices accompanied by increasing malpractice by builders. Unsurprisingly, the greatest chunks of housing complaints are from Thane (4,670) and Navi Mumbai (1,031), which have witnessed frenetic construction activity in recent years. 

    However, South Mumbai, which has MMR’s most expensive real estate pockets, received a comparatively low 702 complaints. 

Few files a month enough to bury consumer courts under backlog 
In July, Two Forums Did Not Dispose Of A Single Complaint 
    Over 25 years after the enactment of the Consumer Protection Act, consumer forums across the Mumbai M e t ro p o l i t a n Re g i o n (MMR) are battling the problem of pendency. While this is witnessed by other judicial bodies as well, what makes it exceptional in the case of consumer forums is that the number of cases received by them is not remotely close to what, say, the criminal courts receive. 
    The reply to an RTI application by activist Chetan Kothari shows that by August this year, the Thane consumer forum had the highest backlog of cases (1,721), followed by the Mumbai suburban forum (1,508 cases). Typically, the forums receive a few dozen complaints a month. For instance, in July, Thane received 42 complaints and the suburbs 59. The same month, the Thane and the Thane additional forum (which hears complaints from Navi Mumbai) did not dispose of a single case. 
    The numbers have gone up since June, when the Thane forum had 1,679 pending cases, the suburban forum 1,472, the additional suburban forum (distinct from the suburban forum) 658, the South Mumbai forum 646, the Thane additional forum 379 and the Central Mumbai forum 425. 
    Overall (after July), the additional Mumbai suburban forum has 673 pending cases, the South Mumbai forum 652, the Central Mumbai forum 467 and the Thane additional forum 416. Even cases that are 5-10 years old are pending. The suburban forum has the maximum of such cases (499), followed by Central Mumbai (370), Thane (81) and South Mumbai (76). 
    Advocate Anand Patwardhan blamed the problem on a lack of manpower and vacant seats across the forums. “The problem has persisted as there has been no appointment of members of late.” 
    This was also echoed by other experts. The RTI reply revealed that among Maharashtra’s 40 consumer forums, the posts of 34 presidents and 53 members lie vacant. Advocate Uday Wavikar said there were several forums in MMR that had completed stopped functioning because of vacant seats. 
    This, he said, puts burden on forums already dealing with backlog. He said several technicalities introduced in the filing of complaints had made the process tedious. “This further delays case disposal.” 
    Referring to a lack of infrastructure, he said, “The number of forums, even if fully occupied, isnot enough for MMR. While Delhi has 12 consumer forums, Mumbai proper has just four.” 
    An activist said, “There is growing awareness among consumers, especially because of cases being reported in the media. But the forums have not been able to keep up. The situation should be remedied.”  

FILING AN APPEAL 
When the refrigerator sputters and dies down during the guarantee period or when the builder promises more than he can deliver, it’s time to head to the consumer court. Here’s how you can exercise your rights: 
    Write a letter to the manufacturer/ dealer outlining the problem and seeking an explanation 
    If you do not get a reply in 15 days, file a complaint before the district consumer forum. The format is available at the state consumer commission’s office. Attach relevant correspondence, bills and an affidavit 
    Your complaint has to be admitted by the forum within 21 days. The court will then issue notices to the manufacturer/dealer, who has to file a reply in 30 days. A 15-day grace period, too, is given 
    If the forum does not receive a reply, it can hear the matter ex parte and pass orders 
    If you are not satisfied with the forum’s order, you can file an appeal before the state commission and then before the national commission

Source::::: The Times of India, 04-10-2012, p.04. http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIM&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW