Bombay High Court Allows Writ Petition Challenging Consumer Forum Order Against Non-Party — Order Directing Compensation to Complainants Set Aside as Petitioner Not Impleaded as Opposite Party. The Court Held That No Order Can Be Passed Against a Person Without Giving Them an Opportunity of Being Heard, and the Consumer Forum Exceeded Its Jurisdiction.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Govind Dewaji Chavan, filed a writ petition challenging the judgment and order dated 27-12-2016 passed by the District Consumer Disputes Redressal Forum, Yavatmal, in Complaint No. CC139 of 2014. The impugned order directed the petitioner to pay compensation of Rs. 5 lakhs to respondent nos. 1 and 2 (original complainants) for having prepared an incorrect map of the property in question on 05-04-1991, along with interest at 6% per annum from that date. The petitioner contended that he was not a party to the complaint before the District Consumer Forum and that the order was passed without any notice to him, thus violating principles of natural justice. The respondent nos. 1 and 2 had filed the complaint on 20-06-2014 against respondent nos. 3 to 7 (developers and government officials) alleging that due to incorrect documents prepared by respondent nos. 5 to 7, the plots sold to them lacked an approach road, causing harassment and loss. The prayer in the complaint sought restraint orders against respondent nos. 3 and 4 and compensation from respondent nos. 3 to 5. The petitioner was not named as an opposite party. The High Court examined the record and found that the petitioner was indeed not a party to the complaint and no notice was issued to him. The court held that the Consumer Forum had no jurisdiction to pass an order against a non-party and that the order was a nullity. The court set aside the impugned order and allowed the writ petition, with no order as to costs.

Headnote

A) Consumer Law - Natural Justice - Order Against Non-Party - Consumer Protection Act, 1986 - The District Consumer Forum passed a compensation order against the petitioner who was not impleaded as an opposite party in the complaint and was not served with notice. The High Court held that such an order is a nullity and violates principles of natural justice, as no order can be passed against a person without giving them an opportunity of being heard. (Paras 1-5)

B) Consumer Law - Jurisdiction - Consumer Forum - Consumer Protection Act, 1986 - The Consumer Forum's jurisdiction is limited to parties before it. It cannot pass orders against persons who are not parties to the complaint. The impugned order directing the petitioner to pay compensation was set aside as the petitioner was not a party. (Paras 2-5)

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Issue of Consideration

Whether the District Consumer Forum could pass an order directing payment of compensation against a person who was not a party to the complaint and against whom no notice was issued.

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Final Decision

The High Court allowed the writ petition and set aside the impugned judgment and order dated 27-12-2016 passed by the District Consumer Disputes Redressal Forum, Yavatmal, in Complaint No. CC139 of 2014. No order as to costs.

Law Points

  • Natural justice
  • Order against non-party
  • Consumer Protection Act
  • 1986
  • Jurisdiction of Consumer Forum
  • Violation of principles of natural justice
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Case Details

2018 LawText (BOM) (12) 131

Writ Petition No. 1379 of 2017

2018-12-20

Manish Pitale, J.

Mr. S.O. Ahmed for petitioner, Mr. R.J. Shinde for respondent nos. 1 and 2, Mr. S.A. Sahu h/f Mr. M.I. Dhatrak for respondent no. 3, Ms T.H. Khan, AGP for respondent nos. 5 to 7

Govind Dewaji Chavan

Wasudeo Ambadas Bhusate, Punaji Narayan Thakre, Ajabarao Wamanrao Bhonde, Shriram Pundlikrao Bhonde, SubDivisional Officer, Darwa, Assistant Director, Town Planning, Yavatmal, District Collector, Yavatmal

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Nature of Litigation

Writ petition challenging order of District Consumer Forum directing petitioner to pay compensation despite not being a party to the complaint.

Remedy Sought

Petitioner sought setting aside of the impugned order dated 27-12-2016 passed by District Consumer Forum, Yavatmal, in Complaint No. CC139 of 2014.

Filing Reason

Petitioner was not a party to the complaint before the District Consumer Forum, yet the Forum directed him to pay compensation of Rs. 5 lakhs to respondent nos. 1 and 2.

Previous Decisions

District Consumer Forum, Yavatmal, passed judgment and order dated 27-12-2016 in Complaint No. CC139 of 2014 directing petitioner to pay compensation.

Issues

Whether the District Consumer Forum could pass an order directing payment of compensation against a person who was not a party to the complaint and against whom no notice was issued.

Submissions/Arguments

Petitioner contended that he was not a party in the complaint before the District Consumer Forum and that the impugned order was passed without any notice to him, violating principles of natural justice. Respondent nos. 1 and 2 argued that the petitioner was responsible for preparing an incorrect map and should be liable.

Ratio Decidendi

A Consumer Forum cannot pass an order against a person who is not a party to the complaint and against whom no notice has been issued, as it violates the principles of natural justice. Any such order is a nullity and liable to be set aside.

Judgment Excerpts

By this Writ Petition, the petitioner has challenged judgment and order dated 27-12-2016, passed by the District Consumer Disputes Redressal Forum, Yavatmal, in Complaint No. CC139 of 2014, whereby the petitioner has been directed to pay amount of compensation of Rs. 5 lakhs to respondent nos. 1 and 2 (original complainants) for having prepared incorrect map of the property in question on 05-04-1991 and to pay interest at the rate of 6% per annum from the said date. It is the contention of the petitioner, that he was not even a party in the complaint before the District Consumer Forum and that, therefore, the impugned judgment and order is liable to be set aside.

Procedural History

On 20-06-2014, respondent nos. 1 and 2 filed Complaint No. CC139 of 2014 before the District Consumer Disputes Redressal Forum, Yavatmal, against respondent nos. 3 to 7. The Forum passed judgment and order on 27-12-2016 directing the petitioner (who was not a party) to pay compensation. The petitioner filed Writ Petition No. 1379 of 2017 before the Bombay High Court, Nagpur Bench, challenging the order. The High Court reserved judgment on 11-12-2018 and pronounced it on 20-12-2018.

Acts & Sections

  • Consumer Protection Act, 1986:
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