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2025 Supreme(Ker) 101

IN THE HIGH COURT OF KERALA AT ERNAKULAM
C.S.DIAS, J.
Suresh Nathan - Appellant
Versus
The State Consumer Dispute Redressal Commission - Respondent
WP(C) NO. 2119 OF 2025
Decided on : 11-02-2025

Advocates Appeared:
For the Appellant : K.R.ARUN KRISHNAN, DEEPA K.RADHAKRISHNAN, SANAL C.S, VISHAK K.V., ANU T.H.,
For the Respondent: ADV C.DINESH, GP SMT. VIDYA KURIAKOSE

The State Commission must decide consumer complaints on merits, even if the complainant fails to appear, and cannot dismiss for non-prosecution.

Headnote:(A) Consumer Protection Act, 2019 - Sections 37-B, 38, and 49 - Dismissal of complaint for non-prosecution - The Commission's dismissal of the complaint was erroneous as it failed to decide on merits despite statutory obligations - The court emphasized that the State Commission must hear all issues involved in a consumer dispute. (Paras 6-9)

(B) Review of orders - The court found that the review petition was improperly dismissed, highlighting the necessity for the Commission to adhere to statutory procedures. (Paras 5-9)

Facts of the case:
The petitioner filed complaints against multiple respondents, which were adjourned multiple times and ultimately dismissed for non-prosecution. The petitioner sought a review of this dismissal, which was also denied.

Findings of Court:
The court determined that the dismissal for non-prosecution was erroneous and that the complaint should be restored for a hearing on merits.

Issues: The main issues were whether the dismissal for non-prosecution was justified and the obligations of the Commission under the Consumer Protection Act.

Ratio Decidendi: The court ruled that the Commission is mandated to decide complaints on merits, even if the complainant fails to appear, and that dismissal for non-prosecution is not permissible.

Result: Writ petition allowed; orders set aside and complaint restored.

JUDGMENT :

The petitioner had filed C.C. No.102/2019 (Ext.P1 complaint) and C.C.No.103/2019 before the Kerala State Consumer Disputes Redressal Commission (‘Commission’, for brevity) on 5.8.2019, against the respondents 2 to 6. Respondents 2 to 6 had entered appearance in the two complaints and filed their versions. The complaints were posted together on 8.4.2020. On the said day, the complaints were adjourned to 04.06.2024. On 04.06.2024, the Commission adjourned Ext.P1 complaint to 17.10.2024. However, on the said posting date, by Ext.P3 order, the complaint was dismissed for non-prosecution. Immediately, the petitioner filed Ext.P4 application under Section 50 of the Consumer Protection Act, 2019 (‘Act’, for short) to review Ext.P3 order. But, by Ext.P5 order, the Commission dismissed Ext.P4 review petition. Exts.P3 and P5 are illegal and erroneous. Hence, the writ petition.

2. Heard; the learned counsel for the petitioner and the learned counsel appearing for the respondents 2 to 6.

3. When the writ petition came up for consideration on 20.1.2025, this Court had called for the proceedings sheet of Ext.P1 complaint from the Commission, which was transmitted to this Court.

4. On a perusal of the proceedings sheet, it is seen that the petitioner had filed Ext.P1 complaint on 14.8.2019. The Commission had issued notice to the opposite parties and adjourned the case to 8.4.2020. On 8.4.2020, the Commission adjourned Ext.P1 complaint by notification to 4.06.2024 i.e., after four years. On 4.6.2024, the Commission recorded no representation for either side and adjourned the complaint to 17.10.2024. On 17.10.2024, the Commission dismissed the complaint for non-prosecution.

5. Even though the petitioner had preferred Ext.P4 application to review Ext.P3 order, the Commission dismissed the review petition by Ext.P5 order, holding that there is no error apparent on the face of the order.

6. For the determination of the writ petition, it is necessary to advert to Sections 37-B, 38 and 49 of the Consumer Protection Act, 2019, which reads as follows:

37-B. Recording settlement and passing of order. -(1) The District Commission or the State Commission or the National Commission, as the case may be, shall, within seven days of the receipt of the settlement report, pass suitable order recording such settlement of consumer dispute and dispose of the matter accordingly.

(2) Where the consumer dispute is settled only in part, the District Commission or the State Commission or the National Commission, as the case may be, shall record settlement of the issues which have been so settled and continue to hear other issues involved in such consumer dispute.

(3) Where the consumer dispute could not be settled by mediation, the District Commission or the State Commission or the National Commission, as the case may be, shall continue to hear all the issues involved in such consumer dispute.]

38. Procedure on admission of complaint.-(1) The District Commission shall, on admission of a complaint, ³[***] proceed with such complaint.

(2) Where the complaint relates to any goods, the District Commission shall,-

(a) refer a copy of the admitted complaint, within twenty-one days from the date of its admission to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by it;

(b) if the opposite party on receipt of a 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 Commission, proceed to settle the consumer dispute in the manner specified in clauses (c) to (g),

(c) if the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, obtain a sample of the goods from the complainant, seal it and authenticate it in the manner as may be prescr

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