Supreme Court Allows Builder's Written Statement Filed Beyond 45 Days in Consumer Case Due to COVID-19 Extension of Limitation. The Court held that the suo motu order extending limitation during the pandemic overrides the statutory bar under Section 38 of the Consumer Protection Act, 2019.

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Case Note & Summary

This batch of civil appeals arose from an order of the National Consumer Disputes Redressal Commission (National Commission) dated 07.09.2020, which refused to take on record the written statement filed by the appellant builder, M/s. SS Group Pvt. Ltd., in consumer complaints filed by the respondents (flat buyers). The respondents had booked flats with the appellant and sought refund due to alleged delay in delivery. Notices were issued in June 2020 and received by the appellant on 13.07.2020. Under Section 38(2)(a) of the Consumer Protection Act, 2019, the appellant had 30 days (till 12.08.2020) to file a written statement, extendable by 15 days (till 27.08.2020). The appellant filed the written statement on 31.08.2020, four days beyond the 45-day limit. The National Commission, relying on the Constitution Bench decision in New India Assurance Co. Ltd. v. Hilli Multipurpose Cold Storage (P) Ltd., held that it had no power to extend time beyond 45 days and refused to accept the written statement. The appellant challenged this order before the Supreme Court. The Supreme Court noted that the suo motu order dated 23.03.2020 in SMW(C) No.3 of 2020, passed under Article 142 read with Article 141 of the Constitution, extended the period of limitation for all proceedings (including special laws) from 15.03.2020 until further orders, to address difficulties caused by the COVID-19 pandemic. This order was still operative when the limitation period expired. The Court held that the limitation for filing the written statement stood extended, and the delay of four days was condoned. Consequently, the appeals were allowed, the National Commission's order was set aside, and the written statement was directed to be taken on record, with the matter to proceed expeditiously. No costs were awarded.

Headnote

A) Consumer Law - Limitation for Written Statement - Section 38(2)(a) Consumer Protection Act, 2019 - Extension of Limitation due to COVID-19 - The appellant builder filed written statement 4 days beyond the 45-day period. The National Commission refused to take it on record relying on New India Assurance Co. Ltd. v. Hilli Multipurpose Cold Storage (P) Ltd. The Supreme Court held that the suo motu order dated 23.03.2020 in SMW(C) No.3 of 2020 extended limitation for all proceedings, including consumer complaints, and thus the delay was condoned. (Paras 2-5)

B) Limitation Act - Suo Motu Extension by Supreme Court - Article 142 read with Article 141 of Constitution - COVID-19 Pandemic - The Supreme Court's order dated 23.03.2020 extended limitation from 15.03.2020 till further orders for all proceedings under general or special laws. This order was binding on all courts and tribunals. The period of limitation for filing written statement stood extended, and the delay of 4 days was deemed condoned. (Paras 4-5)

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Issue of Consideration

Whether the National Commission was correct in refusing to take the written statement on record when it was filed beyond the 45-day period under Section 38 of the Consumer Protection Act, 2019, in light of the Supreme Court's suo motu order extending limitation due to COVID-19.

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Final Decision

The Supreme Court allowed the appeals, set aside the National Commission's order, and directed that the written statement filed by the appellant be taken on record. The matter was directed to proceed expeditiously in accordance with law. No order as to costs.

Law Points

  • Limitation for filing written statement under Section 38(2)(a) of Consumer Protection Act
  • 2019 is 30 days extendable by 15 days
  • but Supreme Court's suo motu order dated 23.03.2020 extended limitation for all proceedings during COVID-19 pandemic
  • overriding the statutory bar.
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Case Details

2020 LawText (SC) (12) 38

Civil Appeal No.4085 of 2020 (arising out of SLP (C) No.13636 of 2020) and connected appeals

2020-12-17

Vineet Saran, S. Ravindra Bhat

Sanjay K. Shandilya, Apoorva Agarwal, Abhishek, Mushtaq Ahmad for appellant; Naveen Kumar for respondents

M/s. SS GROUP PVT. LTD.

Aaditiya J. Garg & Anr.

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Nature of Litigation

Civil appeals against order of National Consumer Disputes Redressal Commission refusing to take written statement on record.

Remedy Sought

Appellant builder sought setting aside of National Commission's order and direction to take written statement on record.

Filing Reason

The National Commission refused to accept the written statement filed beyond 45 days under Section 38 of the Consumer Protection Act, 2019.

Previous Decisions

National Commission order dated 07.09.2020 declining to take written statement on record.

Issues

Whether the National Commission was correct in refusing to take the written statement on record when it was filed beyond the 45-day period under Section 38 of the Consumer Protection Act, 2019, in light of the Supreme Court's suo motu order extending limitation due to COVID-19.

Submissions/Arguments

Appellant argued that the limitation period stood extended by the Supreme Court's suo motu order dated 23.03.2020 in SMW(C) No.3 of 2020, which applied to all proceedings including consumer complaints. Respondents did not file counter affidavit and submitted that appeals be disposed of.

Ratio Decidendi

The Supreme Court's suo motu order dated 23.03.2020 extending limitation for all proceedings during the COVID-19 pandemic applies to consumer complaints under the Consumer Protection Act, 2019, and overrides the statutory bar under Section 38(2)(a) against extending time beyond 45 days for filing written statements.

Judgment Excerpts

the period of limitation of 30 days to file the written statement had expired on 12.08.2020 and the extended period of 15 days expired on 27.08.2020. This period expired when the order dated 23.03.2020 passed by this Court in SMW(C) No.3 of 2020 was continuing. the limitation for filing the written statement in the present proceedings before the National Commission would be deemed to have been extended as it is clear from the order dated 23.03.2020 that the extended period of limitation was applicable to all petitions/ applications/suits/appeals and all other proceedings.

Procedural History

Respondents filed consumer complaints before National Commission in 2020. Notices issued in June 2020, received by appellant on 13.07.2020. Written statement due by 12.08.2020 (30 days) extended to 27.08.2020 (45 days). Appellant filed written statement on 31.08.2020. National Commission refused to take it on record on 07.09.2020. Appellant filed special leave petitions before Supreme Court, which were converted into civil appeals. Supreme Court heard and allowed appeals on 17.12.2020.

Acts & Sections

  • Consumer Protection Act, 2019: Section 38, Section 38(2)(a)
  • Constitution of India: Article 142, Article 141
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