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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
V.B. Gupta, Presiding Member and Vinay Kumar, Member
RADHA AGRO PACKS LTD. - Appellant
Versus
ICICI BANK LTD. AND ORS. - Respondents
First Appeal No. 41 of 2012 with IA No. 1 of 2012 from Order dated 5.12.2011 in Appeal No. 52 of 2011 of State Commission, Haryana, Panchkula
Decided on : 08-05-2012

Advocates Appeared:
Mr. D.P. Chhachhia, Advocate, for the Appellant; None, for the Respondent

The main legal point established in the judgment is the peremptory nature of Section 24-A of the Consumer Protection Act, 1986, in requiring complaints to be filed within the stipulated period of two years from the date of cause of action.

Headnote:

Consumer Protection Act - Delay in filing complaint - Section 138 of the Negotiable Instruments Act - Section 24-A of the Consumer Protection Act, 1986 - The court discussed the delay in filing the complaint, the definition of cause of action, and the peremptory nature of Section 24-A in requiring complaints to be filed within the stipulated period of two years from the date of cause of action.

Fact of the Case:

The appellant raised a loan and handed over two blank cheques as security. Despite making regular payments, the respondent harassed the appellant and recalled the loan. The respondent also filed a complaint under Section 138 of the Negotiable Instruments Act. The appellant filed a complaint under Section 12 of the Consumer Protection Act, seeking condonation of a 454-day delay, which was dismissed by the State Commission as barred by time.

Finding of the Court:

The court found that the complaint was barred by the period of 454 days and that the delay in filing the complaint was not satisfactorily explained. The court also discussed the definition of cause of action and the peremptory nature of Section 24-A in requiring complaints to be filed within the stipulated period of two years from the date of cause of action.

Issues: The issues included the unintentional delay in filing the complaint, the definition of cause of action, and the peremptory nature of Section 24-A in requiring complaints to be filed within the stipulated period of two years from the date of cause of action.

Ratio Decidendi: The court held that the delay in filing the complaint was not satisfactorily explained and that the complaint was barred by the period of 454 days. The court also emphasized the peremptory nature of Section 24-A in requiring complaints to be filed within the stipulated period of two years from the date of cause of action.

Final Decision: The court dismissed the appeal and directed the appellant to deposit costs of Rs. 10,000 within eight weeks, with the provision of interest at 9% p.a. for non-compliance.

ORDER

V.B. Gupta, Presiding Member - Aggrieved by order dated 5.12.2011, passed by Haryana State Consumer Disputes Redressal Commission, Panchkula (for short 'state Commission'), appellant/complainant has filed this First Appeal against respondents/opposite parties..

2. Brief facts are that appellant raised loan on 6.12.2006 for Rs. 34,62,750 from respondent No. 1. Appellant handed over two blank cheques to respondent No. 1, stating the same to be by way of security towards repayment of outstanding loan, with an understanding that cheques would not be presented for encashment without consent and notice to the appellant. It is further alleged that despite appellant making regular payment towards repayment, respondent No. 1 started harassing it. Further, respondent No. 1 in an arbitrary manner directed appellant to remove the stocks from warehouse within seven days from the issuance of their letter dated 29.8.2007. It was further alleged that respondent No. 1, recalled their loan amount vide their notice, dated 8.12.2007. Respondent No. 1 did not even permit the officials of appellant to enter the cold storage for operating the freezing unit and this caused loss to the vegetable stored in the cold storage, which were destroyed. Appellant even requested for settlement of account subject to respondent releasing the entire stocks of appellant and further agreeing to pay 10% of the amount on acceptance of OTS and balance 90% with interest in six equal instalments. Vegetable stored started giving foul smell, because of being destroyed. Matter was taken up with the administration. In the meanwhile, respondent presented the cheques, which were dishonoured and consequently respondent also filed complaint under Section 138 of the Negotiable Instruments Act. The administration constituted a committee, which opened the locks of cold storage for the purpose of removing the destroyed vegetables. Material in the shape of green peas weighing 1,45,500 kg., amounting to Rs. 43,65,000 was damaged. Alleging it as deficiency in service, complaint was filed. Cause of action was stated to have arisen on 29.8.2008 when the committee appointed by Deputy Commissioner headed by SDM, opened the cold storage.

3. Appellant filed a complaint under Section 12 of the Consumer Protection Act, 1986 (for short as Act ) on 28.11.2011. Along with it, an application seeking condonation of delay of 454 days was also filed. Delay has been sought to be condoned on the ground that, papers were given to Shri Pardeep Gupta and Ashok Gupta, Advocates who had agreed to file the complaint within time. A letter was also sent by the appellant through UPC to know the position of the case but they did not file the complaint.

4. State Commission, vide its impugned order dismissed the complaint of the appellant as the same was barred by time prescribed under Section 24-A of the Act.

5. Aggrieved by the order of State Commission, appellant has filed the present appeal.

6. We have heard learned Counsel for the appellant. In support, learned Counsel cited following judgments:

(i) Harpreet Singh Kohli and Anr. v. Neelu Estate and Movers Pvt. Ltd., (2010) 4 CPJ 28 (NC);

(ii) N. Balakrishanan v. M. Krishnamurthy, (1998) 7 SCC 123; and

(iii) State (NCT of Delhi) v. Ahmed Jaan, Criminal Appeal No. 131 of 2006, decided by Apex Court.

7. As per averments made in the appeal, delay in filing of the complaint was unintentional, bona fide and due to the reasons beyond the control of the appellant. In the first week of April, 2010, appellant engaged the services of two Counsel and relevant papers for filing of the complaint were handed over to them. However, those Counsels gave false assurance that time limit for filing the complaint is three years. Appellant not satisfied with their verbal assurance, wrote a letter to them on 15.5.2010. In reference to that letter, Advocate informed the appellant telephonically that requisite fee amounting to Rs. 4,000 has been deposited with the State Government Treasur

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