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Guljari Lal Agarwal v. Accounts Officer

Supreme Court of India · 25 September 1996 · [1996] SUPP. 6 S.C.R. 708

Court
Supreme Court of India
Decided
25 September 1996
Case no.
C.A. No. 33 of 1996
Reported as
[1996] SUPP. 6 S.C.R. 708
Result
Partly allowed
Bench
Kurdukar S.P. (J)
Length
6 pages
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PETITIONER:
GULZARI LAL AGARWAL
Vs.
RESPONDENT:
THE ACCOUNTS OFFICER
DATE OF JUDGMENT: 25/09/1996
BENCH:
KURDUKAR S.P. (J)
KULDIP SINGH (J)

ACT

HEADNOTE

JUDGMENT

JUDGMENTS.P. KURDUKAR, J.

This appeal is directed against the order dated May 17, 1995,, in Revision Petition No.393/94 passed by the National Consumer Disputes Redressal Commission, New Delhi (hereinafter referred to us ’National Commission’). It is not disputed that at the relevant time when the order dated 21.1.1994 was passed by the State Commission constituted under the Consumer Protection Act, 1986 (for short "the Act’) was not having the President since he had retired. No new President was appointed on the said State Commission. A complaint was filed by the appellant herein before the District Forum, Bankura as regards inflated telephone bills. A prayer was made in the said complaint that the respondent herein be directed not to disconnect the telephone connection. An order was made by the District Forum in favour of the appellant directing the respondent not to disconnect the telephone connection and maintain the telephone line on condition that the appellant deposits a sum of Rs. 4,000/-. The appellant accordingly complied with the said order. It appears that despited this order, the telephone connection of the appellant was disconnected on 30.11.1993. The appellant thereafter moved an application for restoration and it is common premise that on 25.5.1994, the telephone connection was restored. The complaint as regards the excessive bill of Rs.13,896/- is still pending.

2. the respondent not being satisfied with the order passed by the District Forum preferred an appeal to the State Commission and the State Commission vide its order dated 21.1.1994 dismissed the said appeal, holding that the order passed by the District Forum was in consonance with the circular dated 15.10.1992 issued by the Telephone Department. Being aggrieved by the order passed by the State Commission, the respondent preferred Revision petition under Section 21 of the Act before the National Commission. The national Commission after hearing the parties vide its impugned order dated May 17, 1995 allowed the Revision Petition primarily on the ground of jurisdiction. the National Commission has held as under:

"The impugned order passed by the

State Commission, West Bengal had

to be held illegal and void on the

ground that the said order had been

passed only by two Members of the

State Commission without the

junction of the President, which is

manifestly contrary to mandatory

provisions contained in Section

14(2A) read with Section 10 of the

Consumer Protection Act, 1986. The

said order of the State Commission

is hereby set aside. We also set

aside the interlocutory orders

dated October 14, 1993 (Annexure

’B’ and October 19, 1993 (Annexure

’C’ passed by the District Forum,

Bankura as being totally devoid of

jurisdiction in the light of the

recent pronouncement of the Hon’ble

Supreme court in Morgan Stanely

Mutual Fund vs. Kartik Das (1994-

IIC.P.J. (S.C.7) where if has been

categorically laid down a Consumer

Forum has no jurisdiction or power

to pass any interim order pending

disposal of an original complaint

filed before it".

3. It is this order passed by the National Commission which is the subject matter of challenge in appeal.

4. Before we deal with the rival contentions raised before us, it would be appropriate to set out relevant provisions of the Act and Rules. Clause (jj) of Section 2 defines : member:-

"member" includes the President and

a member of the National Commission

or a State Commission at a District

Forum, as the case may be."

5. Section 9 in Chapter III refers to the Consumer Disputes Redressal Agencies and the relevant provisions are as under :-

9. "Establishment of Consumer

Disputes Redressal Agencies:-

There shall be established for the

purposes of this Act, the following

agencies, namely, :-

(a) xxxx xxxx xxxx

(b) a Consumer dispute s Redressal

Commission to be known as the

"State Commission" established by

the State Government if the State

by notification; and

(c) xxxx xxxx xxxx

6. Section 13 prescribes the procedures to be followed on receipt of a complaint.

7. Section 14 enumerates the items on which the District Forum shall issue an order to the opposite party direction him to do one or more of the following things set out in sub sections 14(1)(a) to 14(1)(i).

8. The controversy relates to Section 14(2) and 14(2A) which are reproduced herein below :-

14(2)-Every proceeding referred to

in sub section (1) shall be

conducted by the President of the

District Forum and at least one

member thereof sitting together:

Provided that where the member, for

any reason, is unable to conduct

the proceeding till it is

completed, the President and the

other member shall conduct such

proceeding de novo.

14(2A)-Every order made by the

District Forum under sun section

(1) shall be signed by its

President and the member or members

who conducted the proceedings;

Provided that where the proceeding

is conducted by the President and

one member and they differ on any

point or points, they shall state

the point or points on which they

differ and refer the same to the

other member for hearing on such

point or points and the opinion of

the majority shall be the order or

the District forum.

9. Section 16 deals with the Composition of the Sate Commission and it reads as under:

"16. Composition of the State

Commission:- (1) Each State

Commission shall consist of -

(a) a person who is or had been a

Judge of a High Court, appointed by

the Sate Government, who shall be

its President:

(Provided that no appointment under

this clause shall be made except

after consultation with the Chief

Justice of the High Court;)

(1) xxxx xxxx xxxx

(2) xxxx xxxx xxxx

(3) xxxx xxxx xxxx

(4) xxxx xxxx xxxx

10. Section 18 deals with the Procedure applicable to State Commissions and it reads thus :-

"18. Procedure applicable to State

Commission - The provisions of

Sections 12,13 and 14 and the rules

made thereunder for the disposal of

complaints by the District Forum

shall, with such modifications as

may be necessary, be applicable to

the disposal of disputes by the

State Commission".

11. Chapter IV of the Act deals with Miscellaneous Provisions. Section 29 refers to the power to remove difficulties. Section 29A is the relevant provision which reads as under :-

"29A- Vacancies or defects in

appointment not to invalidate

orders- No act or proceeding of the

District forum, the State

Commission or the National

Commission shall be invalid by

reason only of the existence of any

vacancy amongst its members of any

defect on the constitution

thereof".

12. Sub-section (2) of Section 30 deals with the powers of State Government to make rules. Sub section (2) of Section 30 reads as under :-

"The State Government may, by

notification, make rules for

carrying out the provisions

contained in [clause (b) of sub

section (2) and sub-section (4) of

Section 7], sub-section (3) if

Section 10, Clause (c) if sub-

section (1) of Section 13, sub-

section (3) of Section 14, section

15 and sub-section (2) if section

16."

Note :- Bracketed portion was

incorporated by Act No.34 of 1991

with effect from 15.6.1991.

13. the State government in exercise of powers conferred by sub-section (2) of section 30 of the Act framed the Rules which are called the West Bengal Consumer Protection rules, 1987. These rules ere brought into force immediately. Sub-rules (9) and (10) of rule 6 are relevant and they read as under:-

"6(9) - Where any such vacancy

occurs in the office of the

President of the State Commission

the senior most (in order of

appointment) member holding office

for the time being, shall discharge

the functions of the President

until a person appointed to fill

such vacancy assumes the office of

the President of the State

Commission.

6(10) - When the President of the

Sate Commission is unable to

discharge his functions owing to

absence, illness or any other

cause, the senior most ( in order

of appointment) member of the State

Commission shall discharge the

functions of the President until

the day on which the President

resumes the charge of the

functions."

14. In the light of the aforesaid provisions, it is necessary to consider as to whether the impugned order passed by the National Commission is legal. The National Commission held that the order passed by the State Commission is manifestly contrary to a mandatory provision contained in Section 14(2A) read with Section 18 of the Act as it was made by two other members of the said commission without the ’junctions’ of the President.

15. Mr. Bhattacharya, the learned counsel appearing for the appellant urged that the impugned order is unsustainable. He urged that the National Commission had totally overlooked certain provisions contained in the Act and the Rules and erroneously came the conclusion that in the absence of the President of the State Commission being functional, the other two members have no jurisdiction to deal with the disputes/appeal filed before the State commission. In support of the submission, Learned Counsel drew our attention to the definition of a member contained on Clause (jj) of Section 2 and Sections 14(2A), 18A and 29A. Reliance was also placed in sub-rules (9) and (10) of Rule 6. Mr. Bhattacharya urges that all these provisions will have to be construed harmoniously with a view to promote the object and spirit of the Act. the impugned order passed by the National Commission is unsustainable and the same be quashed and set aside.

16. Mr. S.K.Sabharwal, the learned Advocate appearing for the respondent supported the impugned order and urges that sub-sections (2) and(2A) of Sections 14 in unmistakable terms indicate that every proceeding referred to in subsection (1) shall be conducted by the President of the District Forum and at least one member thereof sitting together. Sub-section (2A) read with section 18 require that every order made by the district Forum/State Commission under sub-section (1) shall be signed by the President and the Member or Members who conducted the proceedings. In view of this mandatory provision, counsel urged that any proceeding conducted before the State Commission in the absence of the President would be non-est. He further urged that admittedly when the State Commission passed the orders on October 14, 1993 and October 19, 1993, the President of the State commission was not appointed by the State Government and, therefore, these orders were rightly held to be illegal.

17. After giving careful thought to the rival contentions raised before us, we are of the considered opinion that the relevant provisions which we have quoted hereinabove will have to be construed harmoniously to promote the cause of the consumers under the Act. As indicated earlier, the definition of member includes the President and a Member of a District Forum/State Commission. It is true that sub-section (2) of Section 14 read with section 18 require that every proceeding referred to under sub-section (1) shall be conducted by the President of the District Forum/State Commission and atleast one member thereof sitting together. Section 2A is consequential in the sense that every order made by the State Commission under sub-section (1) shall be signed by its President and the Member or Members who conducted the proceeding. The procedure applicable to the District Forum is made applicable to the State Commission vide Section 18 with such modifications as may be necessary. Plain reading of subsections (2) and (2A) of Section 14 may support the view taken by the National Commission nut if these provisions are read with Section 29A of the Act and sun rules (9) and (10) of Rule 6, it would be quite clear that it could never be the intention of legislature to stall or render the State Commission non-functional in the absence of the President either having not been appointed in time due to some valid reasons or if the President is on the leave due to certain reasons beyond his control. (2) and (2A) of Section 14 and Section 18A of the Act were brought into force with effect from 18-6-1993 whereas Section 29A was made applicable from 15.6.1991. The Rules of 1987 were brought into force immediately. The complaint before the District Forum by the appellant was filed on 14-10-1993. Therefore, all these amended provisions were very much brought into force when the complaint was filed. Sub-section (2) if section 14 is a presumptuous provision where the President if the State Commission is functional but it would not be correct to say that if the President of the President of the State Commission id non-functional because of one or the other reason, the State Commission would stop its functioning and wait till the President is appointed. In order to avoid such a situation, the State Government had framed the Rules and sub-rules (9) and (10) quoted hereinabove unmistakably provide answerable to such a situation as in the present case. The only harmonious construction that could be given to sub-sections (2) and (2A) of section 14 read with subrules (9) and (10) is that as and when the President of the State Commission of functional, he alongwith atleast one Member sitting together shall conduct the proceeding but where the President being non-functional, sub-rules (9) and (10) of rule 6 will govern the proceedings. Sub rule (0) provides that where any such vacancy occurs in the office if the President of the State Commission, the senior most (in order if appointment) member holding office for the time being, shall discharge the function of the president until person is appointed to fill such vacancy. This sub-rule is made with a view to make the State Commission functional in the absence of the President and not to allow the State Commission to render non-functional for want of the President. It is well settled that every provision in the Act needs to be settled that every provision in the Act needs to be construed harmoniously with a view to promote the object and spirit of the Act but while doing so, no violence would be done to the plain language used in the section. It is this principle that needs to be made applicable while construing the provision of sub-sections (2) and (2A) of Section 14 read with sub-rules (9) and (10).

18. The West Bengal Government had framed the Rules in the year 1987 and the object of sub-rules (0) and (10) of Rule 6 appears to use to keep the State Commission functional in the absence of the President. Form the impugned order it appears that the attention of the National Commission was not drawn to sub-rules (9) and (10) of Rule 6. It also appears from the record that the validity of subrules (9) and (10) of Rule 6 was never challenged. It is made clear that the view which we have taken in this appeal is on the premise that there is no challenge to the validity of the Rules and they hold the field.

19. Having regard to the composition of the District Forum and the State Commission, it is more appropriate and desirable to make the appointment of the President of the District Forum and the State Commission without any delay since the complaint under the Act involved fairly large stokes which require a judicial approach.

20. In view of above discussion, we are of the opinion that the National Commission committed an error in holding that order passed by the two members of the State Commission without the junction of the President is "illegal and void." Impugned order to that extent is set aside.

21. Coming to the second part of the order as regards the grant of interim order, in our opinion, the National Commission was right in applying the law laid down by this Court in Morgan Stanely Mutual Fund vs. Kartick Das. 1994(II) CPJ 7(SC). The consumer forum has no jurisdiction or power to pass any interim order pending disposal of original complaint filed before it. The impugned order if this behalf is confirmed.

22. In the result. the appeal is partly allowed. The impugned order holding that the order passed by the State Commission, West Bengal is illegal and void is quashed and set aside. But, however, the rest of the impugned order is confirmed. In the circumstances, parties are directed to bear their own costs.

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