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2001 Supreme(Cal) 108

HIGH COURT OF CALCUTTA
Asok Kumar Ganguly, J.
East India TPT. Agency India Ltd. & Anrs.
Vs.
Union of India & Ors.
C.O. No. 13091(W) of 1990
Decided on : February 27, 2001

Advocates Appeared:
Pratik Prakash Banerjee, A. Bania for the petitioner;
R. Roy, D. Das for the respondent No.4.

A writ petition challenging proceedings initiated outside the territorial jurisdiction of a High Court is not maintainable in that High Court, even if the petitioner received the notice in its jurisdiction.

Headnote:

CONSUMER PROTECTION ACT, 1986 - SECTION 25, 27 - CHALLENGING PROCEEDINGS INITIATED IN RAJASTHAN - MAINTAINABILITY OF WRIT PETITION IN CALCUTTA HIGH COURT - TERRITORIAL JURISDICTION - JURISDICTION CANNOT BE CONFERRED BY CONSENT OF PARTIES - DEFAULT OF ONE OF THE PARTIES DOES NOT CLOTHE THE COURT WITH JURISDICTION - WRIT PETITION DISMISSED WITH COSTS.

Fact of the Case:

The petitioner, a company registered in Delhi, challenged the notices issued by the Rajasthan State Consumer Protection Council and the order passed by the Consumer Dispute Redressal Commission, Rajasthan, under the Consumer Protection Act, 1986. The petitioner argued that the provisions of the Act were ultra vires and the proceedings initiated against it were without jurisdiction.

Finding of the Court:

The court held that the provisions of the Consumer Protection Act, 1986, were valid and the proceedings initiated against the petitioner were not ultra vires. The court further held that the Calcutta High Court did not have territorial jurisdiction to entertain the writ petition as the entire cause of action arose outside its territorial jurisdiction.

Issues: 1. Whether the provisions of the Consumer Protection Act, 1986, were ultra vires? 2. Whether the proceedings initiated against the petitioner were without jurisdiction? 3. Whether the Calcutta High Court had territorial jurisdiction to entertain the writ petition?

Ratio Decidendi: 1. The Supreme Court had held that the Consumer Protection Act, 1986, was a valid piece of legislation and did not suffer from arbitrariness or unreasonableness. 2. The petitioner had not appeared before the Rajasthan State Consumer Protection Council or the Consumer Dispute Redressal Commission, Rajasthan, and the orders were passed ex parte. The petitioner's offices in Delhi and Jaipur had been informed about the proceedings but had failed to take appropriate steps. 3. The entire cause of action arose outside the territorial jurisdiction of the Calcutta High Court. The fact that the petitioner had received the notice in Calcutta did not confer jurisdiction on the High Court.

Final Decision: The writ petition was dismissed with costs.

JUDGMENT

Asok Kumar Ganguly, J.: Heard the learned Counsel for the parties.

This writ petition, C.O. 13091(W) of 1990, was filed on 29th August, 1990 by the petitioner challenging inter alia the annexures 'F', 'I' & 'L' in the writ petition. Annexure 'F' purports to be a notice issued by Rajasthan State Consumer Protection Council (hereinafter called the said Council), the respondent No.2. Annexure 'I' appears to be an order dated 17th April, 1990 issued by the Consumer Dispute Redressal Commission (hereinafter called the said Commission), the respondent No.3. Annexure 'L' purports to be a notice dated 18.7.1990 issued by the said Commission asking the petitioner to show cause why the order dated 17.04.90 should not be implemented under section 25 of Consumer Protection Act (hereinafter called the said Act) and why the petitioner should not be punished under section 27 of the said Act.

2. The writ petition was initially moved on 29th August, 1990 before a learned Judge of this Court and the writ petition was directed to be taken up on an adjourned date upon notice on respondent No.2. On the next date, the learned Judge after hearing the appearing parties was pleased to pass the following order:

"No further steps be taken in terms of the application dated 28th August, 1990. In the event any order has been passed no further effect be given thereto until further orders of this Court. No further steps be taken in terms of the application under section 25 of the Consumer Protection Act, 1986 until further orders of this Court.

This order is passed, however, without prejudice to the rights and contentions of both the parties including the maintainability and jurisdiction of this writ application.

Let this matter appear in the list as 'contested application' one week after long vacation.

Let xerox copies of this order be supplied by the Department to the learned Advocates appearing for the parties upon payment of usual charges and upon an undertaking to apply for and obtain the certified copy of this order".

It appears while passing the order the learned Judge made it clear that the said order is without prejudice to the question of maintainability of the writ petition.

Thereafter, affidavit has been filed in this case and matter has been argued before me.

3. The writ petition has been contested only by the respondent No.4. It appears from the array of parties in this writ petition that the respondent No.4 is the only the contesting respondent.

4. Initially the learned Counsel for the writ petitioner was very much relying on the judgment of this Court in the case of the Peerless General Investment Co. Ltd. vs. The District Consumer Redressal Forum, reported in 1996(1) CHN, page 371 and submitted that a learned Judge of this Court has held that the provisions of the said Act are ultra vires, so all proceedings taken under the said Act may be quashed following the said judgement.

5. This Court found that the provision of the said Act came up for consideration in various cases of the Hon'ble Supreme Court and the Hon'ble Supreme Court in all those cases proceeded on the basis of the said Act is a valid piece of legislation.

6. This Court further finds that in a recent pronouncement of the Supreme Court in the case of Indian Medical Association vs. V.P. Shantha, reported in AIR 1966 SC 550, this Apex Court held the Act does not suffer from "the arbitrariness or unreasonableness so as to be violative of articles 14 and 19(1)g of the Constitution" (paragraph 58 page 569 of the report). In view of the aforesaid declaration of law by the Hon'ble Supreme Court, the ratio in Peerless (supra) is not binding on this Court. Therefore, it is not possible for this Court to hold that all proceedings initiated against the petitioner under the said Act are bound to be quashed.

7. So the next question is for consideration whether the writ petition, challenging those proceedings initiated in Rajasthan, is maintainable in Calcutta High Court.

8. The learned Counsel for











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