Tuesday, March 23, 2010

Chapter: 3.1.1 Settled Principles of Law - Consumer Disputes relating to Complicated Issues

Settled Principles of Law

Consumer Disputes relating to Complicated Issues:

Principles laid down:

"Cases involving complex questions of facts and interpretation of laws and rights and obligations of parties under various statutes cannot be satisfactorily determined by commissions in the time frame provided under the 'Act' the complainant may seek Redressal in Civil Court"

The above-mentioned view forms the basis of the decision of the National Commission while dismissing a complaint in the matter of PANALAL (COMPLAINANT) v/s BANK OF INDIA & ORS. (OPPOSITE PARTY) 1-1992 CPR 34 (N.C.) alleging that the Bank honoured the cheque issued by a partner without the joint signature of partners etc.

While dismissing the complaint Hon'ble National Commission held as follows;
"When a complaint involves complex question of facts and interpretation of laws and rights and obligations of parties which can not be satisfactorily determined by the Commissions in the- time frame provided under the Consumer Protection Act, the complainant may seek Redressal from a Civil Court.

However, the aforesaid legal position being laid down by National Commission was reviewed by the apex court in a landmark full bench decision DR. J. J MERCHANT & ORS. v. SHRINATH CHATURVEDI 2002(4), ALE MR 605 (S.C). The apex Court not only held that Consumer Redressal Agencies are capable of and are entitled to decide complicated cases but also that long pendency of a case is no good ground for rejecting a complaint with a direction to approach civil court.

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