1999 JTR(SC) 917
1999 AIR(SC) 3243 ; 1999 AIR(SCW) 3216 ; 1999 5 ALD(SC) 105 ; 1999 37 AllLR 324 ; 1999 3 AndhWR(SC) 138 ; 1999 4 ArbLR 364 ; 1999 4 AWC 3354 ; 1999 3 CLT(SC) 238 ; 2001 104 CompCas 14 ; 1992 2 CPJ(SC) 41 ; 2000 DNJ 296 ; 2000 1 ICC 731 ; 1999 6 JT 238 ; 2000 1 MLJ 55 ; 2000 1 PLR(SC) 398 ; 1999 4 RCR(Civ) 151 ; 1999 5 Scale 168 ; 1999 6 SCC 627 ; 1999 SCR 685 ; 1999 2 UJ 1394 ; 2000 WBLR 253 ; 1999 KHC 1317 ; 1999 7 Supreme 379
1999(7) Supreme 379
Supreme Court of India
(From National Consumer Disputes)
S. Saghir Ahmad & R.P. Sethi, JJ.
Mr. France B. Martins & Anr. -Appellants
versus
Mrs. Mafalda Maria Teresa Rodrigues -Respondents
Civil Appeal No. 7593 of 1995
Decided on 24-8-1999
Counsel for the Parties :
For the Appellants : K.B. Sinha, Sr. Advocate, Bhawanishankar V. Gadnis, H.A. Raichura, Advocates.
For the Respondents : Ajit Pudussery, Advocate.
Important Points
1. Prior to insertion of Section 14A in the Consumer Protecton Act, there being no time limit preseribed for filing complaint a complaint filed prior to insertion of Section 14A could not be dismissed on ground of limitaion.
2. Where builder though delevered flat as per agreement but failed to execute sale deed, Consumer Protection Commission was justified is giving direction to builder to specific performence of agreement.
Act
Referred
:CONSUMER PROTECTION ACT : S.14, S.24(a)
LIMITATION ACT : Art.54
(A) The Consumer Protection Act, read with Section 24A, governs the limitation and admissibility of complaints before the Consumer Disputes Redressal Forums, Commissions, and the National Commission, expressly overriding any implied application of the Limitation Act, 1963, where no period of limitation was originally prescribed under the Act, and the provisions of Section 24A(2) provide for condonation of delay on sufficient cause; this case involves an assessment of limitation under the Act post-amendment and the retrospective applicability of such provisions to a dispute arising from an agreement for sale of property and specific performance, where the cause of action predates the amendment but the complaint was filed after the statutory two-year period under Section 24A.
(B) Key legal principles include: (i) Section 24A of the Consumer Protection Act prescribes a uniform period of limitation of two years for filing complaints, (ii) the doctrine of condonation of delay under Section 24A(2) requires sufficient cause, (iii) the Limitation Act, 1963 is not automatically applicable to proceedings under the Consumer Protection Act, (iv) the Act is remedial in nature and aimed at protecting consumer rights, and (v) specific performance of an agreement for sale of property can be decreed if the buyer has paid the price and the seller denies liability without justification.
Facts of the case:
The appellants/developers agreed to sell a flat in the name of the respondents minor daughter for a price of Rs. 2,10,000, payable on or before September 1985, and delivered possession in September 1985 on full payment. The appellants failed to execute the sale deed on various pretexts, and the flat was alleged to be sub-standard, necessitating repairs costing Rs. 26,000. The respondent filed a petition on 19.6.1992, which was dismissed by the District Forum, Goa as barred by limitation (19.10.1992). The appeal to the Goa State Consumer Disputes Redressal Commission was allowed, and the matter was remitted to the District Forum to amend the complaint. The District Forum again dismissed the complaint as time-barred (31.3.1993). An appeal to the State Commission was allowed, directing specific performance, which was challenged before the National Commission and dismissed via the impugned order dated 31.1.1994.
Findings of Court:
The National Commission and the State Commission found that the appellants had acknowledged liability and were estopped from denying the obligation to execute the sale deed. The respondent had paid the agreed price, and the dispute regarding the balance amount and repairs did not justify non-execution of the deed. The findings of the State Commission were not interfered with due to lack of material irregularity or jurisdictional error.
Issues:
Whether the complaint filed after the limitation period prescribed under Section 24A was maintainable, and whether the provisions of the Limitation Act, 1963 were attracted to the proceedings under the Consumer Protection Act.
Ratio Decidendi:
Section 24A of the Consumer Protection Act prescribes a two-year limitation for filing complaints, but the Commissions have the discretion to condone delay under Section 24A(2) on sufficient cause. The Act is a standalone statute, and the Limitation Act is not made applicable by reference; thus, the complaint was not barred, and the appellate authority was justified in directing specific performance when the seller had not denied liability and the buyer had paid the price.
Result:
The appeal is dismissed without any order as to costs.
(A) The Consumer Protection Act, read with Section 24A, governs the limitation and admissibility of complaints before the Consumer Disputes Redressal Forums, Commissions, and the National Commission, expressly overriding any implied application of the Limitation Act, 1963, where no period of limitation was originally prescribed under the Act, and the provisions of Section 24A(2) provide for condonation of delay on sufficient cause; this case involves an assessment of limitation under the Act post-amendment and the retrospective applicability of such provisions to a dispute arising from an agreement for sale of property and specific performance, where the cause of action predates the amendment but the complaint was filed after the statutory two-year period under Section 24A.
(B) Key legal principles include: (i) Section 24A of the Consumer Protection Act prescribes a uniform period of limitation of two years for filing complaints, (ii) the doctrine of condonation of delay under Section 24A(2) requires sufficient cause, (iii) the Limitation Act, 1963 is not automatically applicable to proceedings under the Consumer Protection Act, (iv) the Act is remedial in nature and aimed at protecting consumer rights, and (v) specific performance of an agreement for sale of property can be decreed if the buyer has paid the price and the seller denies liability without justification.
Facts of the case:
The appellants/developers agreed to sell a flat in the name of the respondents minor daughter for a price of Rs. 2,10,000, payable on or before September 1985, and delivered possession in September 1985 on full payment. The appellants failed to execute the sale deed on various pretexts, and the flat was alleged to be sub-standard, necessitating repairs costing Rs. 26,000. The respondent filed a petition on 19.6.1992, which was dismissed by the District Forum, Goa as barred by limitation (19.10.1992). The appeal to the Goa State Consumer Disputes Redressal Commission was allowed, and the matter was remitted to the District Forum to amend the complaint. The District Forum again dismissed the complaint as time-barred (31.3.1993). An appeal to the State Commission was allowed, directing specific performance, which was challenged before the National Commission and dismissed via the impugned order dated 31.1.1994.
Findings of Court:
The National Commission and the State Commission found that the appellants had acknowledged liability and were estopped from denying the obligation to execute the sale deed. The respondent had paid the agreed price, and the dispute regarding the balance amount and repairs did not justify non-execution of the deed. The findings of the State Commission were not interfered with due to lack of material irregularity or jurisdictional error.
Issues:
Whether the complaint filed after the limitation period prescribed under Section 24A was maintainable, and whether the provisions of the Limitation Act, 1963 were attracted to the proceedings under the Consumer Protection Act.
Ratio Decidendi:
Section 24A of the Consumer Protection Act prescribes a two-year limitation for filing complaints, but the Commissions have the discretion to condone delay under Section 24A(2) on sufficient cause. The Act is a standalone statute, and the Limitation Act is not made applicable by reference; thus, the complaint was not barred, and the appellate authority was justified in directing specific performance when the seller had not denied liability and the buyer had paid the price.
Result:
The appeal is dismissed without any order as to costs.
Judgment
Sethi, J.-The appellants, promoters/developers of Perpetual Apartments, agreed to seel a flat in the name of minor daughter of the respondent. According to the Agreement between the parties, the price of the flat being Rs. 2,10,000/- was to be paid on or before September, 1985. The possession of the flat is stated to have been delivered to the respondent in September, 1985 on payment of the whole of the agreed amount. Despite various requests made, the appellant did not execute the sale deed in false pretexts. In the absence of the sale deed, the respondent-complainant could not efficaciously enjoy the property for which she is stated to have paid the price. It was submitted that as the construction of the flat was sub-standard, the respondent-complainant had to incur an expense of Rs. 26,000/- for immediate repairs. Her petition, filed on 19.6.1992 was dismissed by the Consumer Disputes Redressal Forum, Goa (hereinafter referred to as “the District Forum”) on the ground of limitation vide order dated 19.10.1992. The appeal preferred by the respondent was accepted by the Goa State Consumer Disputes Redressal Commission (hereinafter referred to as “the State Commission”) and the matter was remitted to the District Forum permitting the respondent to amend her complaint. The District Forum again, vide its order dated 31st March, 1993, dismissed the complaint as barred by time. The respondent filed an appeal which was allowed by the State Commission with a direction to the appellants for specific performance of the Agreement. The revision filed by the appellant before the National Consumer Dispute Redressai Comission, New Delhi (hereinafter referred to as “the National Commisssion”) was dismissed vide impugned order dated 31.1.1994.
2. Learned counsel appearing for the appellants has vehemently argued that as the complaint filed by the respondent was barred by time, the State Commission was not justified in issuing the directions which were contimed by the National Commission. It is contended that before insertion of Section 24A in the Consumer Protection Act (hereinafter referred to as “the Act”), the period of limitation for preferring a claim was such period as is prescribed under the Limitation Act and aas according to him the complaint was filed by the respondent after seven years, the same deserved dismissal.
3. The argument, though attractive on the facr of it, has no substance when examined in depth. Admittedly, no period of limitation had been prescribed in the Act before insertion of Section 24A vide amendment made w.e.f. 18th June, 1993. Section 24A of the Act, for the first time, prescribed that the District Forum, the Stae Commission or the National Commission shall not admit a complaint unless the same was filed within two years from the date on which the cause of action arose. Sub-section (2) of Section 24A authorises the Commission to entertain complaint even after the period of limitation on the existence of sufficient cause for not filing the complaint within the statutory period by recording its reasons for condoning the delay. It is conceded before us that the provisions of the Limitation Act, 1963 have not been specifically made applicable to the proceedings under the Act. The Limitation Act does not extinguish a right but only bars the remedy after a prescribed period of limitation. Section 2(j) of the Limitation Act defines the “period of limitation” to mean the period of limitation prescribed for any suit, appeal or application by the Schedule attached to the Limitation Act and “prescribed period” means the period of limitation computed in accordance with the provisions of the Act. It is not the case of the appellants that complaint filed by the respondent was either a suit or an appeal or an application within the meaning of the provisions of the Limitation Act. When the Legislature, in its wisdom, thought it appropriate not to prescribe the period of limitation for proceedings under the Act, the courts cannot apply the provisions by implication. It has to be kept in mind that the Act was made for better protection of interests of consumers and to make provision for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes and matters connected therewith. The Act has been enacted to promote and protect the rights of consumers such as :
“(a) the right to be protected against marketing of goods which are hazardous to lifr and property;
(b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices;
(c) the right to be assured, wherever possible, access to an authority of goods at competitive prices;
(d) the right to be heard and to be assured that consumers interest will receive due consideration at appropriate forums;
(e) the right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and
(f) right to consumer education.”
The addition of Section 24A in the Act reflects the mind of the Legislature that they had initially not intended to prescribe any period of limitation for filing the complaints under the Act.
4. The reliance of the learned counsel for the appellants on New India Assurance Co. Ltd. v. Shri B.N. Sainani1 also appears to be misplaced inasmuch as this Court in that case had only referred to the practice of the Counsumer Commissions of applying the provision of the Limitation Act. It is important to note that this Court did not approve the application of the Limitation Act to teh complaints under the Act but in the circumstances of the case found that even on assumption of the applicability of the period prescribed for a suit relating to similar relief as preferred under the Act, the claim was barred by limitation. This Court held :
“Before insertion of Section 24A in the Act with effect from June 18, 1993 the Act did not prescribe any period of limitation for filing a complaint. It was, however, not disputed that early to this the consumer commissions have been applying the Limitation Act, 1963 to find out if a complaint was barred by limitation or not. Since at the time when the complaint in the present case was filed Section 24A was not there, we therefore, fall back from the provisions of the Limitation Act. Article 44 of Schedule to the Limitation Act, in relevant part is as under :
Description of suit Period of Time from which Limitation period begins to run
44(b) On a policy of Three The datea of the lnsurance when the years occurrence causing sum insured is pay- the loss, or where able after proof of the claim on the the loss has been policy is denied given to or received either partly or by the insurers. wholly, the date of such denial.”
We are, however clear that prior to its amendment the, Act gad not prescribed any period of limitaion for filing the complaints by the consumers.
6. Assuming, but without holding, that the provisions of the Limitation Act were applicable, we are of the opinion that the appellants are not justified in urging that the claim preferred by the respondent-complainant was barred by time. It is true that the Agreement was executed somewhere in 1983 and the possession of the premises delivered to the respondent-complainant in 1985. It is also evident that at no point of time the appellants denied their liability to execute the Sale Deed in favour of the respondent. No period for specific performance of Agreement had been prescribed by the parties. The record produced before the authcrities under the Act reveals that the appellant had upto 30th August, 1991, been acknowledging liability to deliver the legal possession of the flat to the respondent. Vide a notice sent to the respondent by the appellants brought their counsel on 30th August, 1991 had admitted that the respondent had paid a sum of Rs. 2,00,000/- and was liable to pay a further sum of Rs. 20,000/- which the respondent-complainant disputed. The complainant was intimated :
“Notice is therefore given to you requiring you to pay the said balance sum of Rs. 20,000/- within 15 days from the date and take legal possession of the flat failing which our client shall be at liberty to charge you interest at the balance sum payable to him at the rate of 18% per annum from the date of the last payment.”
7. There is no substance in the submission of the appellants that as the respondent had allegedly not paid the whole amount, she was not entitled to the directions as were issued by the State Commission. The respondent had categorically stated in para 5of her complaint that the consideration amount had been paid which was not denied by the respondent. They had only stated that a sum of Rs. 20,000/- was still recoverable from her regarding which she had preferred the claim of compensation for the repairs done to the flat as it was found to be constructed of the sub-standard material. The findings of fact arrived at by the State Commission do not require any interference. The National Commission was also justified in holding that there was no error of jurisdiction or material irregularity pertaining to the jurisdiction in the order of the State Commission requiring any interference.
There is, therefore, no merit in this appeal which is accordingly dismissed but under the circumstances without any order as to costs.
(C.R.) Appeal dismissed.
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