Skip to main content

Company tardy in filing court reply loses right to be heard

Background: The aim of the Consumer Protection Act is to provide speedy justice within a time bound period. To achieve this objective, the Act prescribes a period of 30 days for filing a reply, with the leeway of one extension of 15 days. However, the casual approach of parties against whom a case is filed (opponents) can delay proceedings.

Earlier, the consumer fora were liberal in granting extension upon extension to permit opponents to file their reply to the complaint "in the interest of justice". As opponents started taking undue advantage of the liberal approach, consumers were harassed with unnecessary delay and needless adjournments. Realizing this, the fora have become strict in enforcing the time frame for filing of replies.

Case Study: Kanan Kintwear had filed a complaint against Tata AIG before the Maharashtra State Commission. The notice was served on July 24, 2013, but the insurance company failed to file its reply within 45 days.

On October 15, 2013, Tata's advocate filed his vakala tnama, and sought extension of time to file a reply without even bothering to assign any reason for not having filed it within the statutory time limit. The State Commission refused to grant further time and held that the opponent's right to file its reply stood forfeited.

Tata challenged this order by filing a revision petition before the National Commission. Tata argued that there were several judgments under the Civil Procedure Code where it had been held that there could be a number of genuine reasons for the inability to file a reply within the statutory period, and that in such cases the court could grant extension of time.

Rejecting this argument, the National Commission observed that even those judgments did not lay down that extension of time was a matter of right. The time schedule stipulated by law would haveto be followed, and any deviation would be by way of exception. A request for extension of time cannot be granted just as a matter of routine and merely for the asking. A written application giving the reasons for seeking such extension would have to be made by the opponents, and the court would grant extension only if it is satisfied that the reasons given are exceptional, genuine and beyond the control of the opponents. Even then costs may be imposed.

The National Commission also observed there was a direct judgment of the Supreme Court in respect of proceedings under the Consumer Protection Act, where a 3-judge bench, in Dr J J Merchant v/s Srinath Chaturvedi, had held that the mandate of the law requiring the reply to be filed within a particular time frame must be strictly adhered to.

The National Commission also noted that Tatas had neither made any application before the State Commission to explain why the reply was not filed within 45 days, nor had they given any reason for seeking extension of time. Even the revision petition before the National Commission had failed to disclose this information. Accordingly, the National Commission upheld the order of the State Commission to proceed with the adjudication of the complaint without allowing Tata to file its reply. (Judgment dated January 6, 2014 delivered by Justice S M Malik for the Bench along with Dr S M Kantikar.)

Impact: A consumer should not object to just one extension which may be given in the interests of justice to decide the dispute fairly after hearing both sides.

But if an opponent is not diligent or seeks extension of time repeatedly, consumers should object to such dilatory tactics and insist that the complaint be proceeded without the reply of the opponent. Only then will opponents take the proceedings seriously.

Article referred: http://timesofindia.indiatimes.com/city/mumbai/Company-tardy-in-filing-court-reply-loses-right-to-be-heard/articleshow/28726259.cms

Comments

Most viewed this month

Deposit Of Minimum 20% Fine/Compensation U/s 148 NI Act Mandatory

In OP(Crl.).No.348 OF 2019, T.K.SAJEEVAN vs FRANCIS T.CHACKO, the appeal was filed against the order of the lower court to deposit 25% of the fine before filling of appeal. The appellant argued that the deposit introduced through the Section 148 of the NI Act after amendment was directory in nature as it used the term 'may' while mentioning the issue of deposit. The Kerala High Court however disagreeing held that in view of the object of the Legislature while incorporating Section 148 into N.I. Act, the word 'may' will have to be read as 'shall'. The imposition of payment contemplated under Section 148 N.I. Act cannot be restricted to some prosecutions and evaded in other prosecutions. Since the amount directed to be deposited being compensation, undoubtedly, it is liable to be ordered to be deposited irrespective of the nature of the prosecution. Therefore, the word 'may' can only be taken to have the colour and meaning of 'shall' and there

NCLT - Mere admission of receipt of money does not qualify as a financial debt

Cause Title : Meghna Devang Juthani Vs Ambe Securities Private Limited, National Company Law Tribunal, Mumbai, CP (IB) No. 974/MB-VI/2020 Date of Judgment/Order : 18.12.2023 Corum : Hon’ble Shri K. R. Saji Kumar, Member (Judicial) Hon’ble Shri Sanjiv Dutt, Member (Technical) Citied:  Carnoustie Management India Pvt. Ltd. Vs. CBS International Projects Private Limited, NCLT Swiss Ribbons Pvt. Ltd. & Anr vs. Union of India & Ors. (2019) Sanjay Kewalramani vs Sunil Parmanand Kewalramani & Ors. (2018) Pawan Kumar vs. Utsav Securities Pvt Ltd 2021 Background Application was filed under section 7 of the Insolvency and Bankruptcy Code, 2016 alleging loan of Rs, 1.70 cr is due. The Applicate identified herself as the widow and heir of the lender but could not produce any documents proving financial contract between her Late husband and the CD but claimed that the CD has accepted that money was received from her husband. The applicant subsequently filed rejoinder claiming the debt t

Jurisdiction of consumer forum is not ousted even if the other party has filed suit on the same matter in Civil Court

In Yashwant Rama Jadhav v. Shaukat Hussain Shaikh, First Appeal No. 1229 of 2017, decided on 18.11.2017,  the grievance of the petitioner before the National Consumer Disputes Redressal Commission was that appellants/complainants had entered into agreements with the respondents for purchase of residential flats, which the respondents were to construct and despite paying the substantial amount to the respondents, the construction of the flats had not been completed. The State Commission dismissed the complaints and ruled in favor of respondents against which the appellants approached the National Commission. The NCDRC held that Section ‘3’ of the Consumer Protection Act, to the extent it is relevant provides that the provisions of the Act shall be in addition and not in derogation of the provisions of any other law for the time being in force. Thus the remedy available under the Consumer Protection Act is an additional remedy, which Parliament has made available to a consumer. Even