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M/s Mangalam Homes & Resorts Pvt. Ltd. & Ors. v. Joy Kaliyavumkal & Anr. Etc.

Civil Appeal · 2018 INSC 18Decided 10 Jan 2018
Civil Appeal Nos. 133-135 of 2018
Justice Madan B. Lokur · Justice Deepak Gupta

Background

A group of homebuyers/consumers had been awarded Rs. 14 lakh each in compensation by the National Consumer Disputes Redressal Commission against a builder, after the builder was proceeded against ex parte. The builder challenged this, arguing it had asked the Commission to hear the matter at its Bengaluru camp sitting and was never told whether that request was accepted or rejected, yet the case proceeded without further notice to it.

Decision Breakdown

The Supreme Court examined the record and found no evidence that the builder was ever informed about the fate of its request to have the case heard at Bengaluru, and held that the National Commission erred in not issuing a fresh notice to the builder before proceeding ex parte. It therefore set aside the Commission's order and remitted the matter back to the National Commission to be heard afresh on merits with both sides present, while directing that the compensation amount already deposited by the builder remain in deposit pending the Commission's final decision.

Lesson Learnt

A party cannot be proceeded against ex parte, and an adverse order cannot stand, if the record does not show that it was properly notified of developments in its case: natural justice requires courts and tribunals to clearly communicate whether a party's specific procedural requests have been accepted or rejected before moving ahead without them.

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

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