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Indian Machinery Company v. M/s. Ansal Housing & Construction Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 557 of 2016)Decided 27 Jan 2016
Civil Appeal No. 557 of 2016
Justice Madan B. Lokur · Justice R.K. Agrawal

Background

The appellant's consumer complaint had earlier been dismissed for default (non-prosecution), and when it filed a fresh, second complaint on the same facts, the National Commission ruled that a second complaint was not maintainable once the first had been dismissed in default. The appellant challenged this before the Supreme Court.

Decision Breakdown

The Supreme Court relied on its own earlier decision in New India Assurance Co. Ltd. v. R. Srinivasan (2000), which held that, unlike civil suits under Order IX Rule 9 CPC, the Consumer Protection Rules contain no provision barring a second complaint after a default dismissal, so that specific civil-procedure bar cannot be imported into consumer law. Since no one could point to any consumer-protection rule similar to Order IX Rule 9 CPC, the Court held the second complaint was maintainable, set aside the National Commission's order, and sent the case back to the National Commission to decide the actual consumer dispute on its merits.

Lesson Learnt

If your consumer complaint is dismissed merely for non-appearance (not on its merits), you are not permanently shut out: you can refile, because consumer protection law, unlike ordinary civil procedure, does not bar a second complaint after a default dismissal.

Official source (sci.gov.in)View Judgment (PDF)

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