Background: When similarly situated aggrieved consumers collectively file a complaint, would it be considered a joint complaint or a representative complaint? Some consumer fora are also confused between the two concepts. Many fora refuse to accept a joint complaint unless an application is made seeking permission to do so. This procedure is not correct.
The National Commission has differentiated the two concepts in some of its judgments. When a joint complaint is filed, the relief sought would be applicable only to those who have collectively filed the complaints. Since all these persons are parties to the dispute, no permission is required to file the joint complaint.
But when one or more consumers file a representative complaint, the relief sought is on behalf of all. So, the judgement which is passed in a representative complaint would also bind those who are not a party to the proceedings. Since the judgment would affect unnamed consumers, the forum's permission is required for filing such a complaint.
Case Study: Rajiv Mehta filed a complaint before the Gujarat State Commission alleging deficiency in service and unfair trade practices by Anil Textorium in its sales promotion scheme. A member enrolling under the scheme was assured that he would be refunded the membership fee when he enrolled more members.
The State Commission considered that there would be several members interested in this dispute and treated it as a representative complaint filed for and on behalf of all similarly situated persons. Since these were unidentifiable, the Commission directed a notice to be published in the press.
This was challenged before the National Commission, which said the general rule is that all persons interested must be joined as parties to the dispute, because the principle applicable is that the rights of an individual cannot be decided unless he is a party to the proceedings. The exception to this is in case of representative complaints, where one or more file a case for the benefit of all similarly placed persons. Such a representative case can be filed only if the courts grant permission to avoid multiplicity of litigation Thus, representative cases are applicable only in respect of general declaration of rights and not for individual claims for money or compensation. The Commission added that consumers having a common interest can file a complaint together under the Consumer Protection Act. When all the consumers are parties to the complaint, it is not a representative complaint, and so it is not necessary to seek permission of the forum. But when the complaint is filed for and on behalf of unidentifiable consumers, it is a representative complaint, requiring permission. Merely because several persons may be interested in a case's outcome does not turn the complaint into a representative complaint. The test is whether relief sought is in respect of complainants who are before the forum, or generally for all, including those who are not parties to the dispute.
Impact: The National Commission has subsequently even allowed a group of 335 persons to file a joint complaint. When a builder dupes a group of flat purchasers, the group can file a single complaint. This not only helps bring down litigation cost, but also makes an impact to realize the gravity of the complaint.
Article referred: http://timesofindia.indiatimes.com/city/mumbai/Consumer-panel-explains-the-difference-between-joint-v/s-representative-consumer-complaints/articleshow/33712730.cms
The National Commission has differentiated the two concepts in some of its judgments. When a joint complaint is filed, the relief sought would be applicable only to those who have collectively filed the complaints. Since all these persons are parties to the dispute, no permission is required to file the joint complaint.
But when one or more consumers file a representative complaint, the relief sought is on behalf of all. So, the judgement which is passed in a representative complaint would also bind those who are not a party to the proceedings. Since the judgment would affect unnamed consumers, the forum's permission is required for filing such a complaint.
Case Study: Rajiv Mehta filed a complaint before the Gujarat State Commission alleging deficiency in service and unfair trade practices by Anil Textorium in its sales promotion scheme. A member enrolling under the scheme was assured that he would be refunded the membership fee when he enrolled more members.
The State Commission considered that there would be several members interested in this dispute and treated it as a representative complaint filed for and on behalf of all similarly situated persons. Since these were unidentifiable, the Commission directed a notice to be published in the press.
This was challenged before the National Commission, which said the general rule is that all persons interested must be joined as parties to the dispute, because the principle applicable is that the rights of an individual cannot be decided unless he is a party to the proceedings. The exception to this is in case of representative complaints, where one or more file a case for the benefit of all similarly placed persons. Such a representative case can be filed only if the courts grant permission to avoid multiplicity of litigation Thus, representative cases are applicable only in respect of general declaration of rights and not for individual claims for money or compensation. The Commission added that consumers having a common interest can file a complaint together under the Consumer Protection Act. When all the consumers are parties to the complaint, it is not a representative complaint, and so it is not necessary to seek permission of the forum. But when the complaint is filed for and on behalf of unidentifiable consumers, it is a representative complaint, requiring permission. Merely because several persons may be interested in a case's outcome does not turn the complaint into a representative complaint. The test is whether relief sought is in respect of complainants who are before the forum, or generally for all, including those who are not parties to the dispute.
Impact: The National Commission has subsequently even allowed a group of 335 persons to file a joint complaint. When a builder dupes a group of flat purchasers, the group can file a single complaint. This not only helps bring down litigation cost, but also makes an impact to realize the gravity of the complaint.
Article referred: http://timesofindia.indiatimes.com/city/mumbai/Consumer-panel-explains-the-difference-between-joint-v/s-representative-consumer-complaints/articleshow/33712730.cms
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