High CourtDivision BenchAppeal disposed of; matter remitted to National...

INDIAN MACHINERY COMPANY v. M/S. ANSAL HOUSING & CONSTRUCTION LTD.

Case / Petition Number:Civil Appeal No. 557 of 2016
Neutral Citation:[2016] 3 S.C.R. 489

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

Consumer Protection Act, 1986Code of Civil Procedure, 1908Order IX Rule 9(1) CPCTamil Nadu Consumer Protection Rules, 1988, Rule 9(6)Tamil Nadu Consumer Protection Rules, 1988, Rules 4(8) and 8(8)Rules made by the Central Government under Section 30(1) of the Act, Rule 15(6)

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 NameCitationTreatmentExplanation
New India Assurance Co. Ltd. v. R. Srinivasan(2000) 3 SCC 242DistinguishedThe 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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Extracted Judgment Text

Exact text extracted from official judgment records.

[2016] 3 S.C.R. 489 A ## INDIAN MACHINERY COMPANY 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 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 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)._ _New India Assurance Co. Ltd. v. R. Srinivasan_ (2000) 3 sec 242 - relied on. c D E ## 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 subrule, 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 or the State Commission. The fact that the case was not decided on merits and was dismissed in default of nonappearance 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 and was dismissed in default." A B 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.