KERALA HIGH COURT
C.S. Dias, J.
Suresh Nathan – Petitioner
versus
The State Consumer Dispute Redressal Commission and Ors. – Respondents
WP(C) No.2119 of 2025
Decided on 11.2.2025
Consumer Protection Act, 2019 – Sections 37-B, 38 and 49 – Adjudication of consumer complaint – District Commission has to hear all issues involved in consumer dispute and decide complaint on merits, even if complainant fails to appear on hearing date – State Commission is not empowered to dismiss complaint for default or non-prosecution, but is obliged to decide complaint on its merits – As there is infraction of statutory provisions, notwithstanding alternative remedy provided under the Act, writ petition is to be allowed by exercising extraordinary powers of High Court – Impugned orders set aside and complaint restored to file. (Paras 7, 8 and 9)
Result: Writ Petition allowed.
JUDGMENT
C.S. Dias, J.—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 authe
Adjudication of consumer complaint – State Commission is not empowered to dismiss complaint for default or non-prosecution, but is obliged to decide complaint on its merits.
Adjudication of consumer complaint – State Commission is not empowered to dismiss complaint for default or non-prosecution, but is obliged to decide complaint on its merits.
The State Commission must decide consumer complaints on merits, even if the complainant fails to appear, and cannot dismiss for non-prosecution.
The State Commission cannot dismiss a complaint for non-appearance without deciding on merits as mandated by law.
“Since appellant found to has not interested in prosecuting the appeal, the same had rightly been dismissed.”
The inherent power of the State Commission allows it to stay execution of orders, despite the absence of explicit provisions in the Consumer Protection Acts, provided statutory conditions are met.
Mandatory timelines under the Consumer Protection Act for filing responses are rigid, and courts cannot extend them beyond stipulated periods.
The court confirmed the dismissal of applications by the State Commission while allowing the petitioner to preserve the right to further challenge the decision.
Condonation of delay by imposition of costs justified.
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