This is a vital recent legal precedent in which a High Court in India intervened to set aside a Judgment passed by the State Consumer Redressal Forum. The High Court in this Judgment set out the power bestowed upon the Constitutional Courts under article 227 of the Constitution of India which gives the High Court supervisory jurisdiction over all courts of the State.
Original Title
High Court Judgment against State Consumer Forum under article 226
This is a vital recent legal precedent in which a High Court in India intervened to set aside a Judgment passed by the State Consumer Redressal Forum. The High Court in this Judgment set out the power bestowed upon the Constitutional Courts under article 227 of the Constitution of India which gives the High Court supervisory jurisdiction over all courts of the State.
This is a vital recent legal precedent in which a High Court in India intervened to set aside a Judgment passed by the State Consumer Redressal Forum. The High Court in this Judgment set out the power bestowed upon the Constitutional Courts under article 227 of the Constitution of India which gives the High Court supervisory jurisdiction over all courts of the State.
Bhaskar Jalan and another Vs. M/s. Housing Estates Private Limited and others. Mr. U. C. Jha, Mrs. M. Sharma, Ms. T. Banerjee. for the petitioners. Mr. Siddhartha Banerjee, Mr. Avinash Kaukani, Ms. Sreya Basu Mallick, Mr. Arnab Seal. for the opposite party nos. 1 and 2. Mr. S. K. Basu, Mr. P. Majumdar. for the opposite party nos. 3 and 6. Mr. Kamal Pathak, Mr. Souvik Maji, Mr. Soumalya Ghosh. for the opposite party no. 4. This revisional application is directed against an order passed by the State Consumer Disputes Redressal Commission (in short SCDRC) in exercise of its power under Section 17(1)(b) of the Consumer Protection Act, 1986, reversing the order passed by the District Consumer Disputes Redressal Forum, Unit-I (in short DCDRF)
dismissing
the
maintainability of the dispute.
application
challenging
the
A preliminary objection was raised on behalf of the opposite
parties with regard to the maintainability of the revisional application on the ground that the impugned order passed by the SCDRC in its revisional jurisdiction under Section 17(1)(b) of the Consumer Protection Act is revisable under Section 21(1)(d) of the Consumer Protection Act, which again is a provision available to the National Commission in exercise of its revisional jurisdiction. There is a fundamental difference between a power exercised by an authority whether original appellate or revisional and a power exercised by a Court under Article 227 of the Constitution of India. There is a fundamental distinction between a statutory power and a constitutional power. There cannot be any limitations on constitutional power. The limitations, if any, are self-imposed. While statutes are seasonal, the Constitution is perennial. The power exercised by the Court under Article 227 of the Constitution of India is a power bestowed upon the Court by the Constitution and such power cannot be curtailed by any statutes. All the Courts in the jurisdiction of a High Court are subordinate to it and subject to its control and supervision under Article 227 of the Constitution of India. While appellate or revisional jurisdiction is regulated by the statutes, the power of superintendents under Article 227 of the Constitution is constitutional. The Court under Article 227 of the Constitution of India may interfere with an order passed by the Subordinate Court or Tribunal if the Court finds that the reasons given by the Trial Court are moonshine, flimsy or irrational and not merely because in the exercise of its discretion, another Court might have a different view and allowed the application or because the reasons for giving a ruling on a point or for rejecting an application may be wrong or disclosed a nonjudicious exercise of discretion and open to correction in an
appeal. The power under Article 227 of the Constitution being a
power of judicial superintendents must be exercised sparingly and only to keep Subordinate Courts and Tribunals within the bound of their authority and not to correct mere errors. Moreover, where the statute bears the exercise of revisional powers it would require very exceptional circumstances to warrant interference under Article 227 of the Constitution since the power of superintendents was not meant to circumvent statutory law. The said power could not be exercised as the cloak of an appeal in disguise. Ordinarily when a statutory forum is created by law for redressal of grievance and that too, in a fiscal statute, the Court may not exercise its supervisory jurisdiction under Article 227 of the Constitution of India. It is misnomer to say that a statutory power debars a Constitutional Court from exercising its jurisdiction under the Constitution. The Court imposes a self-restriction on its power while discharging its function under the Constitution if there is an efficacious alternative remedy available in law to a litigant. The question is whether having regard to the scheme of the Act the Court would exercise its jurisdiction in favour of a litigant, provision of appeal or revision is available to a litigant under the scheme of the Act. In order to appreciate whether the Court should exercise its jurisdiction under Article 227 of the Constitution of India, the Court is required to be satisfied that the order impugned is demonstrably unjust, palpably illegal and has resulted in manifest injustice. The Court of law exists to do justice between the parties. Before I advert to the plethora of decisions cited by the opposite parties in order to nip this application in bud, it is essential to refer some of the facts leading to the initiation of proceeding that had culminated into the impugned order.
The petitioners filed a complaint case before the Kolkata
District Consumer Disputes Redressal Forum, Unit I in C.C. No. 497 of 2012 alleging, inter alia, that the opposite parties have failed to provide essential services as well as they are creating let and hindrance to the enjoyment of the property in question by creating encroachment. It was further alleged that the opposite parties have failed to restore normal water supply to the flats of the petitioners and to ensure that the petitioners get a clear passage to the overhead water tank for smooth and normal supply of drinking water. Although various facts have been narrated in the complaint case but it would appear from paragraphs 11(h) to 11(s) of the complaint petition that the petitioners have alleged deficiency of service and on such allegation present complaint was filed. It would appear from the said sub-paragraphs that various issues were raised contemporaneously with regard to the maintenance of the said building including furnishing copy of the sanctioned plan so that unauthorized encroachment could be removed and the flat owners are not permitted to change the nature of user and cause nuisance. In a meeting held on 8th November, 2011 it was decided that a private limited company would be appointed to look after the facilities and maintain the common areas of the said building. It is alleged that this work has not been properly carried out. The opposite parties instead of delivering their deffence on merit filed a skeleton application in or around February 2013 alleging that the application was not maintainable inter alia on the ground of non-joinder of necessary parties and dispute does not come within the purview of the Act. The said preliminary objection was decided by the DCDRF by an order dated 21st May, 2013 on the ground that simply because that the opposite party no. 1 and 2
are vendors, which would appear from the Deed of Conveyance
itself the complaint case cannot be dismissed. Against that order a revision was preferred in which in addition to the points urged before the Trial Court the opposite parties have raised the point of limitation. It was contended that the petition of complaint is time barred under Section 24A of the Act. In deciding the said revision, the Appellate Tribunal appears to have arrived at a finding that the flats in question were purchased in the same building with an intention to generate profit and since the profit is the main element to be realized by commercial exploitation of the property, the complainant cannot be treated as Consumer within the meaning of Section 2(1)(d) of the Act. The said complaint case was also dismissed on the ground that the complainants purchased the flats on 29th April, 2008 and prior to that they were in possession of the same and after a long delay of at least four years they have filed Consumer Complaint without any application for condonation of delay. Under such background, the objections with regard to the maintainability of this present application are to be considered. The finding of the SCDRC is completely perverse and ex facie illegal having regard to the fact that there was no record available before the said Tribunal from which the Tribunal could have arrived at a conclusion that the said flats were purchased with an intention to generate profit. On the contrary, the perusal of complaint petition would clearly show that the petitioners were complaining that the opposite parties were trying to change the nature of user. Moreover, the said issue could not have been decided without evidence. If a finding is arrived at without any evidence it is ex facie perverse. The observation with regard to the limitation is equally perverse having regard to the fact that the SCDRC has not read
the complaint as a whole. If the paragraphs mentioned herein
above were considered it would clearly show that the petition was filed within the period of two years. In any event, it is continuing cause of action. An act of nuisance is a continuing breach. This has been completely overlooked and/or ignored by the SCDRC. It is equally settled law that a question of limitation is a mixed question of law and fact and cannot be decided in a demurrer application unless on the face the complaint is based by limitation. The learned counsel for the opposite parties has referred to various
Barathidasan Road, Trichy-1, reported in 2004 (1) TN MAC 493, Sanjeevani Estates (P) Ltd. & Anr. Vs. Mr. Alok Bhagat & Ors., reported in 2012 SCC OnLine Cal 4091, National Insurance Co. Ltd. vs. Tushar Kanti Sahoo, reported in 2014(2) CHN (Cal) 232, The Manager, Burdwan Co-operative Agriculture and Rural Development Bank Limited vs. Anath Bandhu Dhara, reported in 2009 (2) CLJ (Cal) 685, wherein it is held that Section 21(b) of the Act it an efficacious alternative remedy and in view thereof this revisional application should not be entertained. In this regard it would be useful to refer to set out Article 227 of the Constitution of India, which reads: Power of superintendence over all courts by the High Court.-(1) Every High Court shall have superintendence over all courts and tribunals throughout the territories interrelation to which it exercises jurisdiction. (2) Without prejudice to the generality of the foregoing provisions, the High Court may(a) call for returns from such courts; (b) make and issue general rules and prescribe forms for regulating the practice and proceedings of such courts; and
(c) prescribe forms in which books, entries and
accounts shall be kept by the officers of any such courts. It is to be remembered that under Article 227 of the Constitution of India the High Court is exercising its supervisory jurisdiction and in this sense it is akin to appellate, revisional or corrective jurisdiction. In exercise of supervisory jurisdiction the High Court may not only quash or set aside the impugned proceedings, judgment or order but may also give suitable directions so as to guide the subordinate Courts as to the manner in which it should proceed thereafter or afresh. If it appears to the Court that error is manifest and grave injustice or gross failure of justice has been occasioned, in the event the impugned order is retained, availability of an alternative remedy by revision would not stand in the way of the High Court to intervene and quash the order. Whether the Court would exercise the discretion in favour of a litigant, as I have stated earlier, would largely depends upon the facts and circumstances of the case. If the order is demonstrably perverse and illegal, a litigant should not be showed the path to approach the National Forum at Delhi for redressal of his grievance. It would not only result i miscarriage of justice but also would allow a palpably wrong order to survive until the matter is being heard by the National Forum. Under such circumstances, the order passed by the SCDRC is set aside. However, I make it clear that the observation made in this order shall not influence the DCDRF to consider the matter on merits. It is needless to mention that the District Consumer Forum would decide the issue as to whether the petitioners are
consumers and the dispute raised is a consumer dispute after
completion of pleadings. The revisional application is allowed. However, there shall be no order as to costs. ab