Koshy, Ag. C.J.

Against the appellant-Writ petitioner, a complaint was filed before the District Consumer Redressal Forum, Kollam by the first respondent alleging manufacturing defect in the paper bag manufacturing machine supplied by the appellant. According to the first respondent, after spending an amount of Rs.15 lakhs the above machine was installed and it was found that there was manufacturing defect. When the case was posted for filing version of the appellant, appellant got an adjournment and on the next posting date, as he was absent, an ex parte decision on merits was taken by the Consumer Disputes Redressal Forum directing him to pay Rs.7,35,000/- with 9% interest from the date of the order. In addition to that, Rs.10,000/- as compensation and Rs.1,000/- as cost, were also ordered by Ext.P2 order. Though the appellant filed a petition under Order IX Rule 13 of the Code of Civil Procedure to set aside the exparte order, it was rejected by the forum. The above petition was rejected with the following endorsement:

“As the final order of the O.P. stands pronounced (dated 29/7/2005) duly, the forum cannot entertain this petition”.

Against the rejection of the petition, the appellant filed the writ petition. Learned Judge dismissed the writ petition holding that appellant is free to file an appeal before the State Commission. The question to be considered is whether the Consumer Reddressal Forum can set aside an order passed on merits, though passed ex parte.

1. 2. It is contended before us that the Consumer Disputes Redressal Forums are rejecting such petitions to set aside the ex parte orders on the ground that they have no power under the Act and it is argued that every court or tribunal have inherent power to set aside exparte order and therefore though the impugned order is appealable, this controversy has to be settled. On that ground the appeal was admitted and after the pendency of the case before this court, it cannot be just dismissed without considering the above point.

2. 3. Section 13 of the Consumer Protection Act, 1986 (in short, “the Act”) details the procedure on admission of the complaint. Section 13(2) deals with the procedure to be adopted by the District Forum. Section 13(2) and (3) of the Act reads as follows:

“(2). The District Forum shall if the complaint admitted by it under Section 12 relates to goods in respect of which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to any services,-

.(a) refer a copy of such complaint to the opposite party directing him to give version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum;

.(b) Where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute,-

.(i) on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegations contained in the complaint, or

.(ii) ex party on the basis of evidence brought to its notice by the complainant where the opposite party omits and fails to take any action to represent his case within the time given by the Forum.

.(c) Where the complainant fails to appear on the date of hearing before the District Forum, the District Forum may either dismiss the complaint for default or decide it on merits.

.(3) Noproceedings complying with the procedure laid down in sub-section (1) & (2) shall be called in question in any Court on the ground that the principles of natural justice have not been compelled with”.

(Emphasis supplied)

Sub-section (2)(c) of Section 13 was incorporated with effect from 13.2003 enabling the District Forum to dismiss the complaint for de