High Court of KeralaSingle JudgeOriginal petition dismissed

Shanmughan v Peninsula Chits (P) Ltd

Case / Petition Number:OP(C) NO. 444 OF 2023

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2023-02-21
Court Decision / Holding
Original petition dismissed
Final Disposition
Original petition dismissed

Parties to the Case

Appellants / Petitioners

  • SHANMUGHAN

Respondents

  • THE PENINSULA CHITS (P) LTD

Legal Representation & Advocates

Counsels for Petitioners

  • • N. L. Bitto

Case Synopsis & Summary

Shanmughan, the defendant in O.S. 385/2018 before the Principal Munsiff, Irinjalakuda, challenges Ext.P5, the order in I.A. 8/2022, which dismissed a stay application in a money-recovery suit filed by Peninsula Chits (P) Ltd. The respondent-plaintiff had instituted the suit in 2018. The petitioner filed Ext.P1 on 5 July 2020 a complaint before the Consumer Disputes Redressal Forum seeking recovery of Rs. 10,25,000, and the Forum, by Ext.P2, restrained the respondent from taking further proceedings against the petitioner until further orders. The petitioner then sought to stay the civil suit via Ext.P4/I.A. 8/2022; Ext.P5, however, dismissed the stay. The central issue is whether the civil suit should be stayed in light of the forum complaint. The court notes that the suit was instituted before the Ext.P1 complaint and that no set-off or counter-claim was pleaded. Ext.P2 does not specifically restrain the suit. Section 41(b) of the Specific Relief Act prohibits injunctions against proceedings in a court subordinate to it. Citing Emaar MGF v. Aftab Singh, the court holds the CP Act is in addition to other laws so parallel proceedings are permissible. The petitioner’s reliance on Anil Paul v. South Indian Bank to treat the Consumer Forum as a “court” is rejected. The court concludes Exts.P1 and P3 can run in parallel, and the petition is dismissed; Ext.P5 is not shown to be in error. The decision preserves the possibility of recovery under Ext.P1 even if a decree is passed in Ext.P3.

Provisions of Law Cited

Section 41(b) of the Specific Relief Act, 1963Section 3 of the Consumer Protection Act, 1986Consumer Protection Act, 1986Article 227 of the Constitution of IndiaSection 41(b) of the Special Relief Act

Legal Doctrines & Maxims

  • Consumer Protection Act is in addition to, and not in derogation of, the provisions of any other law (Emaar MGF v. Aftab Singh)
  • The High Court’s jurisdiction under Article 227 is not an unlimited power to correct all decisions of subordinate courts

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner argued that Ext.P5 order illegally defeats the relief sought in Ext.P4 in light of Ext.P1 filed before the Consumer Disputes Redressal Forum; he contended that parallel proceedings can be accommodated and relied on Emaar MGF to show CP Act is additive, not derogatory to other laws, and on Anil Paul to argue that the Consumer Forum falls within the expression ‘court’. He urged protection under Article 227 of the Constitution and pressed that the Civil Court should not be constrained by the Forum’s order while Ext.P3 suit and Ext.P1 complaint may proceed in parallel.

Contentions of Respondents

The respondent contended that Ext.P5 is valid; the Forum order restrains proceedings only against the petitioner and does not prohibit the civil suit per se; there is no bar under the Consumer Protection Act to parallel proceedings; the lack of counter-claim or set-off by the petitioner weakens the stay argument; the Civil Court is not subordinate to the Forum; reliance on Anil Paul was untenable; the court should not interfere with Ext.P5 under Article 227.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Emaar MGF Land Limited v. Aftab Singh[(2019) 12 SCC 751]PositiveThe Supreme Court held that the Consumer Protection Act operates in addition to other laws, allowing parallel proceedings.
Anil Paul v. South Indian Bank2022 (2) KLT 169DistinguishedCourt found the contention that the Consumer Forum is a ‘court’ for Section 41(b) untenable, distinguishing it from the forum’s actual status.
Consumer Protection Act, 1986 (Section 3)—PositiveCited to support that CP Act is in addition to, and not derogation of, other laws, permitting parallel proceedings (via Emaar MGF reference).

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Extracted Judgment Text

Exact text extracted from official judgment records.

``` OP(C) NO. 444 OF 2023 ``` ``` 1 ``` ## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE C.S.DIAS ``` ``` TUESDAY, THE 21[ST] DAY OF FEBRUARY 2023 / 2ND PHALGUNA, 1944 OP(C) NO. 444 OF 2023 ``` ``` AGAINST THE ORDER IN I.A. NO.8/2022 IN O.S. 385/2018 OF PRINCIPAL MUNSIFF COURT,IRINJALAKUDA ``` ## **`PETITIONER/PETITIONER/DEFENDANT:`** ``` SHANMUGHAN AGED 81 YEARS S/O. KRISHNAN, AYRADA HOUSE, PERINGAOTTUKARA P.O, THANYAM VILLAGE, THRISSUR DISTRICT, REPRESENTED BY POWER OF ATTORNEY HOLDER SHYNI, AGED 43 YEARS, WIFE OF SHAJI, RESIDING AT AYRADA HOUSE, PERINGAOTTUKARA P.O, THANYAM VILLAGE, THRISSUR DISTRICT, PIN - 680565 ``` ``` BY ADV N.L.BITTO ``` ## **`RESPONDENT/RESPONDENT/PLAINTIFF:`** ``` THE PENINSULA CHITS (P) LTD IRINJALAKUDA DESOM, IRINJALAKUDA VILLAGE, MUKUNDAPURAM TALUK, THRISSUR DISTRAICT, REPRESENTED BY MANAGING DIRECTOR, A.D.FRANCIS, AGED 54, S/O. DEVASSY, AZHCHANGATTIL HOUSE, KARUVANNUR DESOM, KARUVANNUR VILLAGE, MUKUNDAPURAM TALUK, THRISSUR DISTRICT, PIN - 680121 ``` ``` THIS OP (CIVIL) HAVING COME UP FOR ADMISSION ON 21.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` OP(C) NO. 444 OF 2023 ``` ``` 2 ``` ## **JUDGMENT** Aggrieved by Ext.P5 order passed in I.A No.8/2022 in O.S No.385/2018 by the Court of the Principal Munsiff, Irinjalakuda, the defendant in the suit has filed the original petition. The respondent is the plaintiff. 2. The skeletal facts leading to Ext.P5 order are: (i) The respondent-company has instituted Ext.P3 plaint against the petitioner for recovery of money. (ii) The petitioner has filed Ext.P1 complaint against the respondent before the Consumer Disputes Redressal Forum ( in short ‘Forum’), Thrissur, for the recovery of an amount of Rs.10,25,000/-. (iii) The Forum, by Ext.P2 order, has restrained the respondent from proceeding against the petitioner until further orders. (iv) In the above background, the petitioner filed I.A ``` OP(C) NO. 444 OF 2023 ``` ``` 3 ``` No.8/2022 (Ext.P4) before the court below, to stay further proceedings in the suit. (v) The court below, by the impugned Ext.P5 order, has dismissed Ext.P4 application. (vi) Ext.P5 is ex-facie illegal and unsustainable in law. Hence the original petition. 3. Heard; Sri.N.L.Bitto, the learned counsel appearing for the petitioner, on admission. 4. The question is, whether there is any illegality in Ext.P5 order? 5. Ext.P3 suit was instituted on 5.9.2018. 6. It is not discernible from the materials on record, as to whether the petitioner has filed any written statement in the suit. 7. The petitioner has filed Ext.P1 complaint before the Forum on 5.7.2020, against the respondent. 8. The Forum has passed Ext.P2 order, restricting ``` OP(C) NO. 444 OF 2023 ``` ``` 4 ``` the respondent from taking any proceedings against the petitioner until further orders. 9. Now, the petitioner has filed Ext.P4 application to stay further proceedings in the suit. But, the court below dismissed the application by Ext.P5 order. 10. In the case on hand, undisputedly, the respondent had instituted Ext.P3 plaint prior to the institution of Ext.P1 complaint. The petitioner has not pleaded any set off or raised a counter claim in the suit. Instead, nearly after two years, the petitioner Ext.P1 complaint for recovery of money from the respondent. 11. The petitioner asserts that because more amount is due from the respondent to the petitioner, as per Ext.P1 complaint, Ext.P3 suit has to be stayed. 12. A reading of Ext.P2 order would reveal that the Forum has not specifically restrained the respondent from proceeding with the suit, which was instituted prior to Ext.P1 complaint. ``` OP(C) NO. 444 OF 2023 ``` ``` 5 ``` 13. Even otherwise, Section 41(b) of the Specific Relief Act, 1963, specifically prohibits injunction being granted to any person from prosecuting a proceeding in a court subordinate to it. 14. In **Emaar MGF Land Limited v. Aftab Singh** [(2019) 12 SCC 751] interpreting Section 3 of the Consumer Protection Act, 1986, the Hon’ble Supreme Court has held that the Act is in addition and not in derogation of the provisions of any other law for the time being in force. Therefore, there is no inhibition in parallel proceedings being conducted. 15. The learned counsel appearing for the petitioner has relied on the decision of this Court in **Anil Paul v. South Indian Bank** [2022 (2) KLT 169], to drive home his contention that the Consumer Forum falls within the expression of ‘court’. Therefore, Ext.P2 order passed by the Forum is binding on the court below. I am afraid that the said contention is untenable, in view of Section 41 (b) ``` OP(C) NO. 444 OF 2023 ``` ``` 6 ``` of the Special Relief Act, and because the Civil Court is not subordinate to the Forum. Moreover, Ext.P1 complaint was filed subsequent to the filing of the suit. 16. In the above conspectus, I am of the firm view that both Exts.P1 and P3 can be parallelly tried by the Forum and Civil Court simultaneously and independently. 17. Ultimately, if the petitioner succeeds in Ext.P1 complaint, he can recover such amount from the respondent, notwithstanding the decree to be passed in Ext.P3 suit. But, that does not mean that the suit is to be stayed. 18. It is trite; the exercise of the power of superintendence of this Court under Article 227 of the Constitution of India is to keep the courts of the District Judicature within their bounds of authority and to see that they do the duty as expected of them. The High Court is not vested with any unlimited prerogative to correct all decisions made within the limits of the jurisdiction of the ``` OP(C) NO. 444 OF 2023 ``` ``` 7 ``` subordinate courts. The exercise of this power and interfering with the orders of the courts is restricted to cases of serious dereliction of duty and flagrant violation of fundamental principles of law or justice, where if the High Court does not interfere, a grave injustice remains uncorrected. It is also nigh settled that while acting under this Article, the High Court is not acting as an appellate court to substitute its judgment in place of the subordinate courts. 19. On a conspectus of the pleadings and materials on record and on the findings rendered above, I hold that there is no error in Ext.P5 order warranting interference by this Court under Article 227 of the Constitution of India. Resultantly, the original petition fails and is hence dismissed. **Sd/-C.S.DIAS** ma/21.2.2023 **JUDGE** ``` OP(C) NO. 444 OF 2023 ``` ``` 8 ``` ``` OP(C) NO. 444 OF 2023 ``` ``` 9 ``` ## **`APPENDIX OF OP(C) 444/2023`** ``` PETITIONER EXHIBITS Exhibit-P1 ``` ``` Exhibit-P2 ``` ``` A TRUE COPY OF THE COMPLAINT FILED BY THE PETITIONER AS CC.262 OF 2020 BEFORE THE CDRF THRISSUR DATED 5/7/2020 ``` ``` A TRUE COPY OF THE ORDER PASSED BY THE CONSUMER DISPUTE REDRESSAL FORUM, THRISSUR DATED 06/07/2020 ``` ``` Exhibit-P3A TRUE COPY OF THE PLAINT IN O.S 385 OF 2018 BEFORE THE MUNSIFF COURT THRISSUR DATED 05/09/2018 ``` ``` Exhibit-P4A TRUE COPY OF IA.8 OF 2022 IN BEFORE THE MUNSIFF COURT IRINJALAKUDA DATED 13/12/2022 ``` ``` Exhibit-P5A TRUE COPY OF THE ORDER IN IA 8/2022 IN O.S.385/2018 OF THE MUNSIFF COURT IRINJALAKUDA DATED 23/12/2022 ```