Supreme Court Allows Appeal by State Transport Corporation Against Consumer Forum's Motor Accident Compensation Award. National Consumer Disputes Redressal Commission Lacks Jurisdiction Over Fatal Motor Vehicle Accident Claims Under Consumer Protection Act, 1986; Claims Tribunal Under Motor Vehicles Act, 1988 Has Exclusive Jurisdiction.

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Case Note & Summary

The Supreme Court heard an appeal by the Chairman, Thiruvalluvar Transport Corporation against an order of the National Consumer Disputes Redressal Commission awarding compensation in a motor accident claim filed under the Consumer Protection Act, 1986. The respondent, Consumer Protection Council, Tamil Nadu, had filed a complaint before the National Commission on behalf of the legal representatives of one K. Kumar, who died in a bus accident. The core question was whether the National Commission had jurisdiction to entertain a claim for compensation arising out of a motor vehicle accident, given the existence of a Motor Accident Claims Tribunal under the Motor Vehicles Act, 1988. On the night between 2nd and 3rd June 1990, K. Kumar was travelling from Kumbakonam to Thanjavur in an omnibus operated by the appellant corporation. Near village Vayalur, while the bus driver was overtaking a bullock-cart, the bullocks panicked. The driver swerved left and the bus hit tree branches, smashing window panes. K. Kumar, who was sitting in the centre of the rear seat, was thrown forward and hit an iron side-bar, sustaining a serious head injury from which he died. The legal representatives did not file a claim before the Motor Accident Claims Tribunal within the six-month limitation period. Later, the Consumer Protection Council filed a complaint before the National Commission claiming Rs.20 lakhs as compensation, asserting that the accident amounted to deficiency in transport service under the Consumer Protection Act, 1986. The appellant opposed the complaint, contending that the Council lacked locus standi and that the National Commission had no jurisdiction because exclusive jurisdiction vested in the Claims Tribunal under the Motor Vehicles Act, 1988. The National Commission, without deciding the jurisdictional objection, awarded Rs.5.10 lakhs with interest at 18% per annum from 1 May 1992 and Rs.10,000 costs, payable within three months. The Supreme Court examined the relevant provisions of both Acts. It noted that the Motor Vehicles Act, 1988 is a special law dealing specifically with compensation for motor vehicle accidents, while the Consumer Protection Act, 1986 is a general law for consumer protection. Applying the principle that general law must yield to special law, the Court held that the Claims Tribunal had exclusive jurisdiction over such claims. The Court also found that the accident had nothing to do with any service hired or availed by the deceased; the complaint did not fall within the definition of 'complaint' in Section 2(c) or 'service' in Section 2(o) of the Consumer Protection Act. Therefore, no consumer dispute existed. Consequently, the Supreme Court allowed the appeal, set aside the National Commission's order, and held that the claim should have been pursued before the Motor Accident Claims Tribunal.

Headnote

A) Consumer Law - Jurisdiction of National Consumer Disputes Redressal Commission - Motor Accident Claims - Consumer Protection Act, 1986, Sections 2(c), 2(o), 21; Motor Vehicles Act, 1988, Sections 165, 175 - Claim for compensation arising from fatal motor vehicle accident filed before National Commission instead of Motor Accident Claims Tribunal - Court held that the Motor Vehicles Act, 1988 is a special law governing motor accident compensation and the Consumer Protection Act, 1986 is a general law, and the general law must yield to the special law - The National Commission had no jurisdiction to entertain the claim and its award of compensation was set aside (Paras 1, 4-6).

B) Consumer Law - Definition of 'Service' and 'Complaint' - Deficiency in Service - Consumer Protection Act, 1986, Sections 2(c) and 2(o) - Accident caused by bus swerving to avoid bullock cart had nothing to do with any service hired or availed by the deceased; the complaint did not fall within the definition of 'complaint' relating to deficiency in service - Held that the Consumer Protection Act was not applicable to motor accident claims as no consumer dispute existed (Paras 3, 6).

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Issue of Consideration

Whether the National Consumer Disputes Redressal Commission constituted under Section 20 of the Consumer Protection Act, 1986 had jurisdiction to adjudicate upon a claim for compensation arising out of a motor vehicle accident, notwithstanding the jurisdiction conferred on a Claims Tribunal constituted under the Motor Vehicles Act, 1988.

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Final Decision

The Supreme Court allowed the appeal, holding that the National Consumer Disputes Redressal Commission had no jurisdiction to entertain the motor accident compensation claim. The order of the National Commission awarding compensation was set aside. The claim, if pursued, would have to be filed before the Motor Accident Claims Tribunal constituted under the Motor Vehicles Act, 1988.

Law Points

  • The Consumer Protection Act
  • 1986 is a general law and the Motor Vehicles Act
  • 1988 is a special law for motor accident compensation
  • the general law must yield to the special law
  • a motor accident claim does not constitute a complaint for deficiency in service under the Consumer Protection Act
  • 1986
  • the National Consumer Disputes Redressal Commission has no jurisdiction to entertain such claims.
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Case Details

1995 LawText (SC) (02) 48

1995-02-09

A.M. Ahmadi (CJ), S. Mohan (J)

1995 AIR 1384, 1995 SCC (2) 479, JT 1995 (2) 441, 1995 SCALE (1)525

The Chairman, Thiruvalluvar Transport Corporation

The Consumer Protection Council

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Nature of Litigation

Appeal against an order of the National Consumer Disputes Redressal Commission awarding compensation for a fatal motor vehicle accident under the Consumer Protection Act, 1986.

Remedy Sought

The appellant sought setting aside of the National Commission's order on the ground that it lacked jurisdiction to entertain a motor accident compensation claim.

Filing Reason

The National Commission allegedly exercised jurisdiction not vested in it, as exclusive jurisdiction for motor accident claims lay with the Motor Accident Claims Tribunal under the Motor Vehicles Act, 1988.

Previous Decisions

The National Consumer Disputes Redressal Commission awarded Rs.5.10 lakhs compensation with 18% interest per annum from 1 May 1992 and Rs.10,000 costs, payable within three months, without deciding the jurisdictional objection raised by the appellant.

Issues

Whether the National Consumer Disputes Redressal Commission had jurisdiction to adjudicate a claim for compensation arising out of a motor vehicle accident under the Consumer Protection Act, 1986, notwithstanding the jurisdiction of the Motor Accident Claims Tribunal under the Motor Vehicles Act, 1988. Whether the motor vehicle accident involved any deficiency in 'service' within the meaning of Section 2(o) read with Section 2(c) of the Consumer Protection Act, 1986.

Submissions/Arguments

The appellant contended that the Consumer Protection Council had no locus standi to maintain the complaint and that the National Commission had no jurisdiction because exclusive jurisdiction was conferred by the Motor Vehicles Act, 1988 on the Claims Tribunal constituted thereunder. The respondent, Consumer Protection Council, filed the complaint before the National Commission under the Consumer Protection Act, 1986, implicitly asserting that the accident involved deficiency in transport service and that the National Commission had jurisdiction to award compensation.

Ratio Decidendi

The Motor Vehicles Act, 1988 is a special law dealing with compensation for motor vehicle accidents, while the Consumer Protection Act, 1986 is a general law for consumer protection; the general law must yield to the special law. A claim for compensation arising out of a motor vehicle accident does not involve any deficiency in service under Section 2(o) read with Section 2(c) of the Consumer Protection Act, 1986, and therefore the National Commission has no jurisdiction. Exclusive jurisdiction vests in the Motor Accident Claims Tribunal under Section 165 of the Motor Vehicles Act, 1988.

Judgment Excerpts

Ordinarily the general law must yield to the special law. The complaint in question cannot be said to be in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided to the deceased. The accident that occurred had nothing to do with service provided to the deceased.

Procedural History

The Consumer Protection Council, Tamil Nadu, on behalf of the legal representatives of deceased K. Kumar, filed a complaint before the National Consumer Disputes Redressal Commission under the Consumer Protection Act, 1986 claiming compensation. The National Commission, without deciding the jurisdictional objection, awarded Rs.5.10 lakhs compensation with 18% interest per annum from 1 May 1992 and Rs.10,000 costs, payable within three months. The appellant, Chairman, Thiruvalluvar Transport Corporation, appealed to the Supreme Court against this order.

Acts & Sections

  • Consumer Protection Act, 1986: 2(c), 2(d), 2(e), 2(f), 2(g), 2(o), 3, 12, 20, 21
  • Motor Vehicles Act, 1988: 2(28), 165, 166, 168, 175
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