VERY IMPORTANT POINT
A complaint cannot be decided by the Consumer Fora after an arbitration award is already passed.

P.D. Shenoy, Member—The issue involved in this case is whether a complaint can be decided by the Consumer Fora after an arbitration award is already passed. The simple answer to this question is No.

2. M/s Kangra Ex-serviceman Transport Company complainant/respondent No. 1 purchased a new bus financed through M/s S.K. and Co. National Highway Kangra opposite party No. 2/Respondent No. 2 for

Rs. 3,75,000/- under hire purchase agreement. Respondent No. 1 had to repay the amount alongwith interest totalling Rs. 5,66,250/- within a period of three years commencing from 1.1.1995. It is the say of respondent No. 1 that it had paid all the installments and got a ‘No Objection Certificate’ for cancellation of the endorsement of hire purchase agreement which the registering authority had done vide order dated 19.4.2000. Suddenly on 27.5.2000 the petitioner who was opposite party No. 1 seized the vehicle. The respondent No. 1 filed a complaint before the District Forum praying for directions to the petitioner to return the bus and pay Rs. 2000/- per day from 27.5.2000 till the return of the bus with 18% interest and also compensation to the tune of Rs. 50,000/- for mental harassment and Rs. 5,000/- as costs. Petitioner contested the complaint stating that the complaint is not maintainable as the bus was purchased under hire-purchase system, secondly it is not aware of any dealing between respondent No. 1 and respondent No. 2 and the respondent No. 1 was a habitual defaulter and he owes a sum of Rs. 1,84,100/- up to 1.6.2000. Respondent No. 2 also filed reply-cum-affidavit. The District Forum after hearing the parties allowed the complaint with certain directions. Aggrieved by the order of District Forum, the petitioner filed appeal before the State Commission. The State Commission modified the order of District Forum in the following terms:

“We allow this appeal partly to the effect that the amount of

Rs. 5,00,000/- along with interest of 9% per annum as awarded in the impugned order is hereby set aside. In the facts and cir-cumstances of the case, we also reduce the amount of cost of litigation from Rs. 10, 000/- to

Rs. 5,000/-. However, we maintain the direction in the impugned order that the Bus bearing No. HP 40-1137 should be returned by the appellant to respondent No. 1 within 30 days of the receipt of a copy of this order passed in appeal.”

3. Dissatisfied with the order of State Commission, the petitioner has filed the revision. It was contended by the Counsel of the petitioner that an arbitration award has been passed in this case which is binding on the parties. He further submitted that the complaint was barred by res judicata inasmuch as respondent No. 1 concealed from this Commission that all disputes between the petitioner and respondent No. 1 had already been settled by arbitration in accordance with Arbitration Agreement contained in the said Hire Purchase Agreement. (HPA). The award dated 5.9.2000 of the Arbitrator Shri K. L Bhendwal had already been published and delivered and the award takes into account all the payments made or due. In terms of said award, the respondent No. 1 owes the petitioner a sum of Rs. 58,114/- towards arrears of hire money, interest and other charges under the said agreement. Though, this fact was brought to the notice of District Forum in the reply but was ignored. Further, in appeal memorandum before the State Commission, petitioner had brought the following facts before the notice of the State Commission:

“The respondent No. 1 had concealed from the Hon’ble- Forum that the complaint was barred by res judicata as the disputes between the appellant and respondent No. 1 had already been settled by arbitration in accordance with Arbitration Clause contained in the said Hire-Purchase Agreement and in this behalf an award dated 5.9.2000 of the Arbitrator Shri K L Bhendwal had already been published and delivered. The said award had taken into account all payments made or due under the