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2021 Supreme(SC) 817

SUPREME COURT OF INDIA
(From the National Consumers Disputes Redressal Commission, New Delhi)
DHANANJAYA Y. CHANDRACHUD, SURYA KANT, VIKRAM NATH, JJ.
Diamond Exports and Another – Appellants
Versus
United India Insurance Company Limited and Others – Respondents
Civil Appeal No. 7546 of 2021
Decided On : 14-12-2021

Advocates appeared:
For the Appellant(s) :Salil Paul, Sahil Paul, Manjeet Chawla, Advocates
For the Respondent(s):Amit Kumar Singh, K. Enatoli Sema, Chubalemla Chang, Advocates

IMPORTANT POINT
Discretion for condonation of delay under Section 13 of Consumer Protection Act,1986 is specifically circumscribed by Statute.

Headnote:

Consumer Protection Act, 1986 – Section 13(1)(a) read with Section 13(2)(a) [Consumer Protection Act, 2019 – Section 69] – Condonation of delay beyond prescribed statutory outer limit – Before decision of Constitution Bench, delay was condoned by NCDRC by furnishing reasons for exercise of such discretion – Having regard to prospective effect of judgment of Constitution Bench in New India Assurance Company Limited and the orders of this Court in Reliance General Insurance Company Limited and Bhasin Infotech-2018 (supra), which had recognized an element of discretion pending reference, no case for interference is made in order of NCDRC allowing application for condonation of delay on merits. (Para 16)

Facts of the case:

Issue in the present appeal pertains to a situation where prior to the decision of the Constitution Bench, the NCDRC had condoned a delay for a period beyond the prescribed statutory outer limit. In the present case, the NCDRC had exercised its discretion on 25th February 2020 to condone the delay prior to the decision of the Constitution Bench on 4th March 2020.

Findings of Court:

Discretion for condonation of delay under Section 13 of the Consumer Protection Act 1986 is specifically circumscribed by the statute. Similar statutory provisions exist in the Arbitration and Conciliation Act 2015 and the Insolvency and Bankruptcy Code 2016 though in a different statutory context - facilitating the sanctity of the arbitral process in the former and the legislative intent of ensuring timely disposal and corporate rehabilitation in the latter. The Consumer protection Act 1986 and its successor are social welfare legislations designed to protect the interests of consumers.

Result : Appeal disposed of.

JUDGMENT :

DHANANJAYA Y. CHANDRACHUD, J.

1. This appeal arises from a judgment dated 25 February 2020 of the National Consumer Disputes Redressal Commission1 [“NCDRC”].

2. While entertaining I.A. Nos. 15390 of 2019, 15391 of 2019 and 18307 of 2019 in Consumer Complaint No. 2645 of 2018, the NCDRC has condoned the delay of 100 days in filing a written statement. The order of the NCDRC was a few days before the judgment of a Constitution Bench dated 4 March 2020, in New India Assurance Company Limited vs. Hilli Multipurpose Cold Storage Private Limited, (2020) 5 SCC 757, which held that the limitation period under Section 13(2)2 [“The District Forum shall, if the complaint 54[admitted] by it under Section 12 relates to goods in respect of which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to any services: (a) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b) where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute: (i) on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegations contained in the complaint and (ii) ex-parte on the basis of evidence brought to its notice by the complainant where the opposite party omits or fails to take any action to represent his case within the time given by the Forum and (c) where the complainant fails to appear on the date of hearing before the District Forum, the District Forum may either dismiss the complaint for default or decide it on merits.”] of the Consumer Protection Act 1986 could not be extended beyond the statutorily prescribed period of forty-five days.

3. The appellants filed a consumer complaint before the NCDRC on 3 December 2018 based on two insurance policies. The claim is on the ground of an alleged fire that took place at the factory of the appellant. On 6 December 2018, the NCDRC passed the following order:

    “Heard. Complaint is admitted, subject to just exceptions.

    Issue notice to Opposite Parties under Section 13(2) of the Consumer Protection Act, 1986 making it clear that if the Opposite Parties wish to contest the allegations in the Complaint, they may file the Written Statements within 30 days of the receipt of notice in the Complaint, failing which their right to file Written Statement may be closed.”

4. The respondent received the summons on 20 May 2019 together with the order of the NCDRC and a complete set of papers consisting of the consumer complaint and documents. The respondent filed its written statement on 23 September 2019 together with I.A. No. 15390 of 2019 for condonation of a delay of 100 days. The appellant filed I.A. No. 15391 of 2019 for the dismissal of the complaint.

5. On 26 September 2019, the NCDRC permitted the appellants to file their reply to the respondent’s application for condoning the delay. The appellants contested the respondent’s application for condonation of delay. The NCDRC, by its order dated 25 February 2020, condoned the delay subject to the respondent paying costs of Rs. 50,000.

6. Mr Salil Paul, learned counsel appearing on behalf of the appellant, has submitted that given the judgment of the Constitution Bench in New India Assurance Company Limited (supra), a delay in excess of the period which is stipulated in Section 13(1)(a) read with Section 13(2)(a) of the Consumer Protection Act 1986, i.e. thirty days extendable by fifteen days, could not have been condoned. The provisions of Section 13 are made applicable to proceedings before the NCDRC by Section 22.

7. On th

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