High CourtDivision BenchAppeals allowed; no order as to costs.

M/s. SS GROUP PVT. LTD. v. AADITIYA J. GARG & ANR.

Case / Petition Number:Civil Appeal No. 4085 of 2020
Neutral Citation:[2020] 13 SCR 779

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Vineet Saran
  • S. Ravindra Bhat
Judgment Date
2020-12-17
Court Decision / Holding
Appeals allowed; the National Commission’s order is set aside; the written statement filed by the appellant shall be taken on record; the matter shall thereafter be proceeded with expeditiously and in accordance with law; the appeals are allowed with no order as to costs.
Final Disposition
Appeals allowed; no order as to costs.

Parties to the Case

Appellants / Petitioners

  • M/s. SS GROUP PVT. LTD.

Respondents

  • AADITIYA J. GARG
  • ANR.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sanjay K. Shandilya
  • • Apoorva Agarwal
  • • Abhishek
  • • Mushtaq Ahmad

Counsels for Respondents

  • • Naveen Kumar

Case Synopsis & Summary

The appellant-builder and the respondents had booked flats, which were not delivered within the expected timeframe, prompting the respondents to file Consumer Complaints before the National Consumer Disputes Redressal Commission seeking refund of money. Notices were issued in June 2020 and received by the appellant on 13 July 2020. The appellant filed a written statement on 31 August 2020, beyond the 45-day period prescribed for filing a written statement under Section 38 of the Consumer Protection Act, 2019, leading the National Commission to decline taking the written statement on record, relying on the Constitution Bench decision in New India Assurance Co. Ltd. v. Hilli Multipurpose Cold Storage (P) Ltd. The appellant challenged this stance. This Court examined the Covid-19 related extension of limitation set out in In Re: Cognizance for Extension of Limitation, SMW(C) No.3 of 2020, noting that the period of limitation in all proceedings was extended with effect from 15 March 2020 until further order. The Court clarified that the extended period applies to all petitions/applications/suits/appeals and other proceedings. Consequently, a delay of four days in filing the written statement is condonable. The appeals are allowed; the National Commission’s order is set aside; the written statement is to be taken on record and the matter shall be expeditiously proceeded with in accordance with law, with no order as to costs.

Provisions of Law Cited

Consumer Protection Act, 2019, Section 38(2)(a)Constitution of India, Articles 141 and 142Consumer Protection Act, 1986, Section 38

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant-builder contends that the period for filing a written statement under the Consumer Protection Act, 2019 is 30 days with a further 15-day extension. Here, the 30-day period expired on 12 August 2020 and the extended 15 days expired on 27 August 2020. The written statement filed on 31 August 2020 is four days past the extended deadline. The Constitution Bench decision in New India Assurance Co. Ltd. v. Hilli Multipurpose Cold Storage held that no written statement can be filed beyond 45 days. However, the Court’s order in In Re: Cognizance for Extension of Limitation (23 March 2020) extended limitation for all proceedings due to Covid-19, applicable from 15 March 2020 until further order. This extended period applies to all petitions, applications, suits, appeals, and other proceedings. Therefore, the delay is condonable, and the appeals should be allowed, with the written statement taken on record and the matter proceeded expeditiously.”

Contentions of Respondents

The respondents rely on the Constitution Bench decision in New India Assurance Co. Ltd. v. Hilli Multipurpose Cold Storage, which holds that no written statement can be filed beyond 45 days under Section 38 of the 2019 Act. They also acknowledge the Covid-era extension of limitation but argue that the extension should be harmonized with the statutory rule. They opted not to file counter affidavits and requested disposal of the appeals. The respondents’ position is that the extension should be invoked with caution and that the record should reflect whether the delay can be condoned under the extended period. They contend that the primary issue is whether the written statement can be admitted and the case proceeded within the extended framework.”},

Cited Precedents (2)

Case NameCitationTreatmentExplanation
New India Assurance Co. Ltd. v. Hilli Multipurpose Cold Storage (P) Ltd.(2020) 5 SCC 757Partly Overruled / LimitedThe judgment acknowledges this Constitution Bench ruling that no written statement should be admitted beyond 45 days under Section 38 of the Consumer Protection Act, 2019, but overrides it in the Covid-era by applying the extended limitation order (In Re: Cognizance for Extension of Limitation) to permit condonation of a four-day delay.
In Re: Cognizance for Extension of Limitation, SMW(C) No.3 of 2020—PositiveThe Court expressly relies on this suo motu order to extend the period of limitation across all proceedings during the Covid-19 period, thereby condoning the four-day delay in filing the written statement.

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Extracted Judgment Text

Exact text extracted from official judgment records.

779 **==> picture [94 x 11] intentionally omitted <==** M/s. SS GROUP PVT. LTD. A v. AADITIYA J. GARG & ANR. (Civil Appeal Nos. 4085 of 2020) DECEMBER 17, 2020 B ## **[VINEET SARAN AND S. RAVINDRA BHAT, JJ.]** _Consumer Protection Act, 1986: s.38 – Deficiency in service – Respondents booked flats with the appellant-builder – Flats were not delivered on time – Consumer complaint filed before National Commission claiming refund of money – Notices issued in June 2020 and received by the appellant on 13 July 2020 – Written statement/ reply filed by appellant on 31 August 2020 which was beyond the period of 45 days – National Commission declined to take the written statement on record on the ground that Consumer Court has no power to extend the time for filing the response to the complaint beyond 45 days – Held: It is true that written statement cannot be allowed to be filed beyond the period of 45 days as per s.38 of the Act – However, in the wake of Covid 19 pandemic, on 23 March 2020, Supreme Court in Re: Cognizance for Extension of Limitation, had passed an order granting extension of period of limitation in all proceedings irrespective of limitation prescribed under the general law or special laws whether condonable or not w.e.f. 15 March 2020 till further orders – It is admitted fact that the period of limitation of 30 days to file the written statement had expired on 12 August 2020 and the extended period of 15 days expired on 27 August 2020 – This period expired when order dated 23 March 2020 was continuing – In view thereof, the limitation for filing written statement in the present proceedings before National Commission would be deemed to have been extended as order dated 23 March 2020 made extended period of limitation applicable to all petitions/ applications/suits/appeals and all other proceedings – As such delay of four days in filing written statement in the pending proceedings before the National Commission is allowed._ C D E F G H 779 780 SUPREME COURT REPORTS [2020] 13 S.C.R. A CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4085 of 2020. From the Judgment and Order dated 07.09.2020 of the National Consumer Disputes Redressal Commission, New Delhi in I.A. No. 5276 of 2020 in C.C. No. 488 of 2020. ## B ## With Civil Appeal Nos. 4086, 4087, 4088, 4089, 4090, 4091, 4092, 4093 of 2020. Sanjay K. Shandilya, Apoorva Agarwal, Abhishek, Mushtaq Ahmad, Advs. for the Appellant. ## C Naveen Kumar, Adv. for the Respondents. The following Order of the Court was passed: ## **ORDER** Leave granted. This batch of civil appeals has been filed by the appellant/builder D challenging the order dated 07.09.2020 passed by the the National Consumer Disputes Redressal Commission, New Delhi (“the National Commission”, for short). The respondents herein had booked the flats with the appellant and since the flats were allegedly not delivered on time, the respondents filed Consumer Complaints before the National Commission claiming E refund of money. The notices in each of the complaint petitions were issued by the National Commission in June 2020 and were received by the appellant on 13.07.2020 in each of complaint cases. It is submitted that as per Section 38(2)(a) of the Consumer F Protection Act, 2019, 30 days time is provided for filing written statement, which could be extended for a further period of 15 days. In the present matter, the period of 30 days expired on 12.08.2020 and extended period of 15 days expired on 27.08.2020. Admittedly, the written statement/reply was filed by the appellant G before the National Commission on 31.08.2020, which filing was beyond the period of 45 days. The National Commission thus declined to take the written statement on record in view of the Constitution Bench decision of this Court in _New India Assurance Co. Ltd. v. Hilli Multipurpose Cold Storage (P) Ltd._ ,(2020) 5 SCC 757, wherein it has been held that the Consumer Court has no power to extend the time for filing the H 781 M/s. SS GROUP PVT. LTD. v. AADITIYA J. GARG & ANR. response to the complaint beyond 45 days. Said decision of the National A Commission is presently under challenge in these appeals. We have heard Mr. Sanjay K. Shandilya, learned counsel appearing for the appellant and Mr. Naveen Kumar, learned counsel appearing for the respondents on caveat. Learned counsel for the respondents submits that the respondents do not wish to file counter affidavit and, therefore, these appeals be disposed of. B With the assistance of the learned counsel for both the sides, we have carefully perused the record. It is true that the decision of the Constitution Bench of this Court in _New India Assurance Co. Ltd. (supra)_ clearly provides that no written statement is to be allowed to be filed beyond the period of 45 days as per Section 38 of the Consumer Protection Act, 2019. However, in this context, it is noteworthy to refer to the order dated 23.03.2020 passed by this Court in SMW(C) No.3 of 2020, titled as “In Re: Cognizance for Extension of Limitation”, which reads as under: “This Court has taken Suo Motu cognizance of the situation arising out of the challenge faced by the country on account of Covid-19 Virus and resultant difficulties that may be faced by litigants across the country in filing their petitions/applications/suits/ appeals/all other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws (both Central and/or State). To obviate such difficulties and to ensure that lawyers/litigants do not have to come physically to file such proceedings in respective Courts/Tribunals across the country including this Court, it is hereby ordered that a period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. 15th March 2020 till further order/s to be passed by this Court in present proceedings. C D E F G We are exercising this power under Article 142 read with Article 141 of the Constitution of India and declare that this order is a binding order within the meaning of Article 141 on all Courts/ Tribunals and authorities. H 782 SUPREME COURT REPORTS [2020] 13 S.C.R. A This order may be brought to the notice of all High Courts for being communicated to all subordinate Courts/Tribunals within their respective jurisdiction. Issue notice to all the Registrars General of the High Courts, returnable in four weeks.” ## B (Emphasis supplied) The above order is still operative and by subsequent orders, the scope has been enlarged so that the said order applies in other proceedings also. C In the present matter, it is an admitted fact that the period of limitation of 30 days to file the written statement had expired on 12.08.2020 and the extended period of 15 days expired on 27.08.2020. This period expired when the order dated 23.03.2020 passed by this Court in SMW(C) No.3 of 2020 was continuing. In view of the aforesaid, in our opinion, the limitation for filing the D written statement in the present proceedings before the National Commission would be deemed to have been extended as it is clear from the order dated 23.03.2020 that the extended period of limitation was applicable to all petitions/ applications/suits/appeals and all other proceedings. As such, the delay of four days in filing the written E statements in the pending proceedings before the National Commission deserves to be allowed, and is accordingly allowed. In the circumstances, we allow these appeals, set-aside the order passed by the National Commission and direct that (i) the written statement filed by the appellant shall be taken on record; and, (ii) the F matter shall thereafter be proceeded with expeditiously and in accordance with law. With the aforesaid observations, the appeals are allowed with no order as to costs. Devika Gujral G Appeals allowed H