INDIAN MACHINERY COMPANY v. M/S. ANSAL HOUSING & CONSTRUCTION LTD.
Case Details & Bench
- Court
- High Court
- Hon'ble Judges
- Madan B. Lokur
- R. K. Agrawal
- Judgment Date
- 2016-01-27
- Court Decision / Holding
- Second complaint filed by the appellant was maintainable; the National Commission's order is set aside; the matter is remitted to the National Commission for adjudication on merits; the appeal is disposed of.
- Final Disposition
- Appeal disposed of; matter remitted to National Commission for adjudication on merits.
Parties to the Case
Appellants / Petitioners
- INDIAN MACHINERY COMPANY
Respondents
- M/S. ANSAL HOUSING & CONSTRUCTION LTD.
Legal Representation & Advocates
Counsels for Petitioners
- • Amarendra Saran, Sr. Adv.; Shaad Anwar; Subhash Chandra Jain, Adv.
Counsels for Respondents
- • Bhargava V. Desai; Kapil Kher; Ms. Saumya Mehrotra, Advs.
Case Synopsis & Summary
INDIAN MACHINERY COMPANY v. M/S. ANSAL HOUSING & CONSTRUCTION LTD. concerns whether a second complaint under the Consumer Protection Act, 1986 is maintainable where the first complaint before the District Forum was dismissed for default or non-prosecution. The National Commission's revision order had held that a second complaint would not lie on the same facts and cause of action. The Supreme Court recalls its decision in New India Assurance Co. Ltd. v. R. Srinivasan (2000) 3 SCC 242, which suggested a bar to a second complaint in such circumstances. It then examines Rule 9(6) of the Tamil Nadu Consumer Protection Rules, 1988 and the corresponding provisions of the central Rules under Section 30(1) of the Act, noting that these rules do not provide a counterpart to Order 9 Rule 9(1) CPC. The Court observes that dismissal for default does not inherently decide the case on merits, and there is no authorizing provision prohibiting a second complaint in the District Forum or the State/National Commissions. On this basis, the Court holds that the second complaint filed by the appellant was maintainable on the facts. It sets aside the National Commission's order and remits the matter for adjudication on merits, disposing of the appeal.
Provisions of Law Cited
Submissions & Arguments
Contentions of Appellants / Petitioners
The appellant contends that there is no provision in the Consumer Protection Act or the rules analogous to Order 9 Rule 9(1) CPC that prohibits filing a second complaint when the first was dismissed for default. Since the first decision was not on merits, a second complaint explaining why the prior proceeding could not be pursued should be permissible. In light of this, the second complaint is maintainable and the matter should be heard on merits; the National Commission’s order to dismiss the second complaint is unsustainable and the matter should be remitted for adjudication on merits.
Contentions of Respondents
The respondents submit that the decision in New India Assurance Co. Ltd. v. R. Srinivasan (2000) 3 SCC 242 holds that a second complaint on the same facts would not lie when the first is dismissed, and that Tamil Nadu/ Central Rules do not create a parallel mechanism to Order 9 Rule 9(1) CPC. Therefore, the second complaint is not maintainable, and the National Commission’s order should be upheld.
Cited Precedents (1)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| New India Assurance Co. Ltd. v. R. Srinivasan | (2000) 3 SCC 242 | Distinguished | The Court notes that in New India Assurance, the second complaint would not lie due to lack of an analog to Order 9 Rule 9(1) CPC; however, the present judgment distinguishes those circumstances because the Tamil Nadu Central Rules do not provide a parallel prohibition, so the second complaint is maintainable here. |
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