Skip to main content

Consumer panel explains the difference between joint v/s representative consumer complaints

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

Comments

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...

Vanishing promoters and languishing shareholders

Over Rs 60,000 crore of shareholders’ wealth is stuck in 1,450 companies suspended by the stock exchanges. More importantly, near 100 per cent pledging of promoter holding appears to be common in many of these companies. This, almost rules out any chance of the companies bouncing back. The suspension is for non-compliance of the listing norms. Vanishing Companies - Definition As per the definition stipulated by SEBI, any listed company, which raised moneythrough initial public offer and, thereafter, stopped operations, did not file returnseither with the RoC or SEBI and did not exist on the registered premises wastermed as vanishing.There are provisions under Companies Act under which companies are termedvanishing companies on satisfying certain conditions. it is provided a companywould be deemed to be a vanishing company, if it satisfies all the conditions given below : a) Failed to file returns with Registrar of Companies (ROC) for a period of two years; b) Failed to fil...

Property can be sold on power of attorney - Delhi High Court

As reported in the Hindusthan Times on 5th May:-  http://www.hindustantimes.com/India-news/NewDelhi/Property-can-be-sold-on-power-of-attorney/Article1-1054964.aspx In a judgment that will benefit lakhs of Delhi residents living in co-operative housing societies and DDA flats, the Delhi High Court has quashed a Delhi government circular banning property sale in the Capital through general power of attorney (GPA). The court found that the directions in the circular, issued by the revenue department on April 27 last year, were contrary to the Supreme Court judgment dated October 11, 2011. The HC order will increase the number of saleable properties in Delhi and could bring down the value of freehold properties. According to realty watchers, on an average, around 20% of properties are registered through GPA transfers — a common way of selling leasehold properties and those that don’t have a clear title. The judgment came on a petition filed by a company, Pace Developers and ...