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UTTAR PRADESH STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, LUCKNOW
Hon’ble Mr. Justice K.C. Bhargava, President &
D.D. Bahuguna, Member
M/S. BHAGIRATHI PLASTIC INDUSTRIES—Appellant
versus
M/S. UNITED INDIA INSURANCE COMPANY & ANR.—Respondents
Appeal No. 716/SC of 1992—Decided on 21.4.1999

Counsel for the Parties :
For the Appellant :Mr. B.S. Rawat and Mr. M.H. Khan, Advocates.
For the Respondents:Mr. V.P. Sharma, Advocate.

1. A complaint under the Consumer Protection Act, 1986, can only be filed before the District Forum within whose jurisdiction the cause of action arose. 2. A complaint under the Consumer Protection Act, 1986, must be filed within three years from the date of accrual of the cause of action.

Headnote:

CONSUMER PROTECTION ACT, 1986 - JURISDICTION - SECTION 11 - LIMITATION - SECTION 24A - SUMMARY: The court held that the District Forum lacked jurisdiction to hear the complaint as the cause of action did not arise within its jurisdiction. Additionally, the court found that the complaint was barred by limitation as it was filed more than three years after the cause of action arose.

Fact of the Case:

The complainant purchased a machine from M/s. Kailash Engineering Works, New Delhi, and obtained transit insurance from the appellant, Oriental Insurance Company. The machine was damaged in an accident during transportation. The insurance company paid Rs. 2,53,000/- to the complainant, but refused to pay the remaining Rs. 70,000/-. The complainant filed a complaint with the District Forum, Uttarkashi, seeking recovery of the remaining amount.

Finding of the Court:

The court held that the District Forum lacked jurisdiction to hear the complaint as the cause of action did not arise within its jurisdiction. Additionally, the court found that the complaint was barred by limitation as it was filed more than three years after the cause of action arose.

Issues: 1. Whether the District Forum had jurisdiction to hear the complaint. 2. Whether the complaint was barred by limitation.

Ratio Decidendi: 1. The court held that the District Forum lacked jurisdiction to hear the complaint as the cause of action did not arise within its jurisdiction. The court relied on Section 11 of the Consumer Protection Act, 1986, which provides that a complaint can be filed only before the District Forum within whose jurisdiction the cause of action arose. 2. The court held that the complaint was barred by limitation as it was filed more than three years after the cause of action arose. The court relied on Section 24A of the Consumer Protection Act, 1986, which provides that a complaint must be filed within three years from the date of accrual of the cause of action.

Final Decision: The court dismissed the appeal and confirmed the judgment and decree of the District Forum.

ORDER

Mr. Justice K.C. Bhargava, President—This is an appeal against order and judgment dated 11.6.1992 passed by the District Forum, Uttarkashi in Complaint Case No. 1/1991. The facts of the case stated in brief are that the complainant filed a complaint for recovery of Rs. 70,000/- alongwith interest.

2. It has been alleged that from M/s. Kailash Engineering Works, New Delhi, the complainant purchased one horizontal Injunction moulding machine for a sum of Rs. 3,23,000/-. The said machine was sent by road from Delhi to Uttarkashi and a transit insurance was obtained from respondent No. 1. The insurance was for a sum of Rs. 3,23,000/- and the machine was booked through M/s. Northern Carrier (P) Ltd. on 17.2.1986. When the machine was being transported the truck met with an accident at Baraut, Distt. Meerut. A survey was made in which it was stated that there is a total loss of the machine and the loss was to the tune of Rs. 3,23,000/-. It is alleged that respondent No. 1, the Insurance Company is liable to pay for the loss. Salvage of the machine was handed over by the respondent No. 1 to respondent No. 2 and respondent No. 1 paid a sum of Rs. 2,53,000/- to the petitioner in December, 1987. A sum of Rs. 70,000/- were not paid as cost of the salvage and that was to be realised from respondent No. 2 on the instructions of respondent No. 1. Respondent No. 2 has not handed over the salvage to respondent No. 1. This agreement was between respondent Nos. 1 and 2 and the petitioner was not a party to this agreement. Opposite party No. 1 was liable to pay this amount of Rs. 70,000/- also. The complainant was informed by U.P. Financial Corporation that Insurance Company has paid Rs. 2,53,000/- only.

3. Opposite party No. 1, who is the appellant, has filed his written statement alleging therein that the complainant is not a consumer and the claim is barred by limitation. It is alleged that the claimant is entitled for payment of Rs. 3,23,000/- and after taking the value of the salvage of Rs. 70,000/- a payment of Rs. 2,53,000/- was made. The Insurance Company is not liable to pay any other amount. It is not possible now to re-open a claim barred by time.

4. In the replication it was alleged that the complainant is a consumer and is entitled to recovery of Rs. 70,000/-.

5. After perusal of evidence on record and hearing the learned Counsels for the parties, it was held that no cause of action arose within the jurisdiction of the Uttarkashi. Hence it dismissed the complaint.

6. Aggrieved against this order, the appellant has come up in appeal and has challenged the correctness of the order passed by the learned District Forum. We have heard learned Counsels for the parties. According to learned Counsel for the appellant, the machine was purchased in Delhi and it was only to be delivered at the request of the complainant at Uttarkashi. According to the learned Counsel the machine was not purchased in Uttarkashi nor there is any office of the appellant at Uttarkashi. It is further alleged that the opposite party No. 1 does not reside at Uttarkashi. The learned District Forum has considered the arguments and came to the conclusion that no cause of action arose either wholly or in part within the local limits of the jurisdiction of District Forum of Uttarkashi. It has also held that there is nothing in the petition to indicate that the Company was bound to deliver the machine at Uttarkashi. The machine was sent to Uttarkashi at the request of the complainant. We are also in agreement with the findings of the learned District Forum because there is no documents on record to show that any part of cause of action arose within the limits of Uttarkashi District Forum.

7. The next point which has been argued by the learned Counsel for the appellant is that the case is barred by limitation. According to learned Counsel for the appellant, payment of Rs. 2,53,000/- was made on 21.9.1987 and the claim of Rs. 70,000/- was refused. According to learned Counsel







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