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NATIONAL CONSUMER DISPUTES
REDRESSAL COMMISSION, NEW DELHI
Hon’ble Mr. Justice D.P. Wadhwa, President; Mr. Justice C.L. Chaudhry,
Mr. Justice J.K. Mehra, Mrs. Rajyalakshmi Rao & Mr. B.K. Taimni, Members
M/S. SONA ENTERPRISES—Appellant
versus
M/S. ALSHARIEF GROUP & ANR.—Respondents
First Appeal No. 207 of 2001—Decided on 13.8.2001

Advocates:
Counsel for the Parties :
For the Appellant :Mrs. Shashi Sharma, Advocate.
For the Respondents: None.

Headnote:Consumer Protection Act. 1986 - Section 11 - Jurisdiction of Consumer Fora - Consignment sent to Bahrain for participation in a Fair - Consignment did not reach till commencement of Fair and complainant appellant advised respondent, foreign based Company, to send consignment back Respondent No.2, Bahrain Port Authority, auctioned the consignment - Complaint claiming compensation for loss of goods - Both respondents were foreigners and had no place of business in India - State Commission dismissed complaint holding that complaint could not be maintained against non-resident company and Foreign Government Department - Appeal . - No material to show that any cause of action wholly or in part arose against respondents in this country - Impugned order suffered no illegality.

       (Paras 6 and 8)

       Result : Appeal dismissed.

       IMPORTANT POINT

       Consumer complaint against foreign based company cannot be entertained unless covered by Section 11 of the Consumer Protection Act.

       

ORDER

Mr. B.K. Taimni, Member—This appeal has been filed by the appellant against the order of the Karnataka State Commission dismissing the complaint filed by the appellant before us on grounds of jurisdiction.

2. Brief facts of the case are that the complainant sent four boxes of handicraft items to Bahrain through M/s. Continental Carriers for participation in an ‘Autumn Fair’ in Bahrain which was to be held there from 30.11.1995 to 8.12.1995. The consignment did not reach Bahrain till 8.12.1995. M/s. Continental Carrier advised the appellant/complainant to contact A1 Sharif Group at Bahrain who were advised by the appellant to send back the consignment. This consignment did not come back and the appellant could not go to Bahrain. They again advised A1 Sharif Group to keep the consignment upto November, 1998 promising that all the charges shall be paid. Appellant was informed that the said consignment has been auctioned by the Bahrain Port authorities. It is the appellant’s allegation that she suffered substantial loss on account of deficiency on the part of A1 Sharif group based in Bahrain. She has also arragned the Port Trust, Bahrain as a respondent party. In view of deficiency on the part of respondent, appellant filed a complaint before the State Commission seeking relief amounting to Rs. 5.30 lakhs with interest, of which, cost of handicraft was put at Rs. 5.00 lakhs and cost of special type of boxes was put at Rs. 25,000/-.

3. Both the opposite parties on being served notice, sent in their replies challenging the jurisdiction of the State Commission to entertain the complaint against respondents who are foreigner and have no place of business or agent in India.

4. After hearing the appellant and the replies filed by the respondents, State Commission dismissed the complaint in two Counts. Firstly, on jurisdiction and secondly, the inability of the State Commission to entertain two complaints by the same complainant on the same cause of action even though respondents in the other case were different.

5. It is against this order that appeal has been filed. The appellant, while arguing her own case, stated that there is clear deficiency on the part of respondent Nos. 1 and 2. While respondent No. 1 failed to send back the goods, respondent No. 2 had no reason to auction the goods without intimation to her. She could not advance any argument on the point of bar of jurisdiction in Consumer Fora set up under CPA to entertain complaint against foreign nationals/foreign Government Departments.

6. We also see that in another complaint No. 25/96 was also filed before the State Commission making M/s. Continental Carriers, M/s. Fowal International Service and M/s. Sea Speed Shipping Agencies Pvt. Ltd., all from Bangalore. State Commission had found party No. 1 i.e. M/s. Continental Carriers deficient in service and had awarded Rs. 2,01,824/- to the appellant/complainant with interest @ 15% from 30.11.1995 along with cost of Rs. 5,000/- on the same facts and issues. It is interesting to note that the two foreign parties now made respondent, were not made parties in that case. Basic issue before us is of jurisdiction. The State Commission has very ably discussed Section 11 of Consumer Protection Act (CPA) at length and found that a complaint cannot be maintained against non-resident companies and foreign Government Departments in the light of provisions and sub-sections of Section 11 of C.P.A.

7. We are in full agreement with the reasoning advanced by the State Commission while passing order on complaint filed by the appellant before us. Section 11 of CPA reads as follows :

“Jurisdiction of the District Forum—(1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed [does not exceed rupees five lakhs].

(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction—

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