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T.S Krishnamoorth v. Mercury Chemicals Rep. By Its Partner N. Visvanatha Iyer And Another S

Madras High Court
Jan 31, 1997
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Structured Summary of the Opinion

Factual and Procedural Background

The petitioner, a senior member of the Tiruppattur Bar practising as an advocate at Tiruppattur, challenged a complaint filed by the first respondent in O.P. No.1223 of 1993 before the District Consumer Disputes Redressal Forum at Madras (the second respondent). The complaint, brought under Section 12 of the Consumer Protection Act, 1986 (read with rule 5 of the Tamil Nadu Consumer Protection Rules, 1988), sought Rs. 4,375.75 and Rs. 21,612.35 on the allegation that the petitioner failed to file a suit and neglected to prosecute Execution Petition (R.E.P.) 265 of 1991 in O.S. No. 4458 of 1985 on the file of the District Munsif, Tiruppathur, North Arcot (Ambedkhar) District.

The petitioner alleged the complaint was false and an attempt to harass him; he also contended that the complaint was not maintainable under the Consumer Protection Act because (i) the first respondent was not a "consumer" within the meaning of the Act and (ii) the District Forum at Madras had no territorial jurisdiction since the cause of action arose at Tiruppathur. The petitioner therefore sought a writ of prohibition to restrain the Madras District Consumer Forum from proceeding with O.P. No.1223/93.

The first respondent filed a counter-affidavit denying the petitioner's allegations and contending that issues of jurisdiction are for the District Forum to decide on the merits. The first respondent also stated that proceedings were at a stage where the petitioner had filed his version and the case was posted for filing proofs and documents before the petitioner filed the present writ petition.

Legal Issues Presented

  1. Whether the complaint against the petitioner is maintainable under the Consumer Protection Act, 1986 (i.e., whether the first respondent qualifies as a "consumer" and whether the matter is a complaint within the meaning of the Act).
  2. Whether the District Consumer Disputes Redressal Forum at Madras (the second respondent) has territorial jurisdiction under Section 11(2) of the Act to entertain O.P. No.1223/93, or whether the cause of action arose wholly or in part within the territorial limits of the District Forum at Tiruppathur.
  3. Whether this Court should exercise its power to issue a writ of prohibition to restrain the Madras District Forum from proceeding with O.P. No.1223/93.

Arguments of the Parties

Petitioner's Arguments

  • The first respondent is not entitled to seek relief under the Consumer Protection Act because the first respondent is not a "consumer" and the subject-matter does not amount to a consumer dispute under Section 2 of the Act.
  • Under Section 11(2) of the Act, the District Forum at Madras has no territorial jurisdiction to dispose of the complaint since the petitioner resides and practises at Tiruppathur and the cause of action arose there; accordingly, this Court may issue a writ of prohibition to restrain the Madras Forum.
  • The complaint is alleged to be false and instituted to tease and annoy the petitioner.

First Respondent's Arguments

  • The first respondent denied the allegations in the petitioner's affidavit and submitted that jurisdictional issues should be decided by the District Forum itself after considering the cause of action; thus the writ is premature and not maintainable.
  • Counsel for the first respondent relied on Section 13(4) of the Act to show that the District Forum has powers akin to a Civil Court for certain procedural matters, and maintained that the Madras Forum has the competence to decide jurisdictional questions.
  • The first respondent also pointed out procedural progression: the petitioner had filed his version and the matter was posted for filing proofs and documents before the writ was filed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Srimathi v. Union of India, 1996 (2) C.T.C. 402 Establishing that complaints of the kind before the Consumer Disputes Redressal Forum can be maintainable under the Act (as affirmed by higher courts). The court noted this authority to conclude there was no need to probe further on the maintainability point; as a result, the petitioner did not press his first objection about maintainability.
M/s East India Commercial Company Ltd. v. Collector of Customs, A.I.R. 1962 S.C. 1893 Definition and scope of the writ of prohibition: it is directed to an inferior tribunal to prevent continuation of proceedings that are without or in excess of jurisdiction. The court relied on the principle that prohibition lies where a tribunal acts without jurisdiction, supporting the petitioner's entitlement to a prohibition if the District Forum lacks jurisdiction.
Govinda Menon v. Union of India, A.I.R. 1967 S.C. 1274 Jurisprudence on grant of prohibition: its supervisory role to restrain inferior tribunals from exercising jurisdiction they do not possess or exceeding their limits; also applicable where there is departure from natural justice. The court applied this principle to affirm that if the District Forum is incompetent or lacks jurisdiction, the High Court may issue prohibition to confine the tribunal within its territorial bounds.
Isha Beevi v. Tax Recovery Officer, A.I.R. 1975 S.C. 2135 (1976) 1 S.C.R. 681 Reiteration of the principle that a writ of prohibition is available where an inferior tribunal exceeds or acts without jurisdiction. The court cited this case as further support for the view that prohibition can be issued where the forum is incompetent to proceed; it formed part of the foundation for issuing the writ in this matter.

Court's Reasoning and Analysis

The court proceeded by considering the two principal objections raised by the petitioner.

  1. Maintainability under the Act: The court referred to an earlier decision in Srimathi v. Union of India and observed that, as per that authority (and its affirmation by the Apex Court), the complaint before the Consumer Forum was maintainable. On this basis the court noted that the petitioner did not press his first objection as to maintainability.
  2. Territorial jurisdiction and suitability of prohibition as remedy:
    • The court analysed Section 11(2) of the Consumer Protection Act, 1986, which prescribes the local limits within which a complaint may be instituted: particularly Section 11(2)(a) (where the opposite party resides, carries on business, or personally works for gain) and Section 11(2)(b) (where the cause of action wholly or in part arises).
    • Applying those provisions to the facts, the court observed that the petitioner is an advocate practising at Tiruppathur; accordingly, the Madras District Forum is not the appropriate forum for a complaint against him and the cause of action (relating to alleged failure to prosecute matters on file at the District Munsif, Tiruppathur) did not arise within Madras.
    • The court considered Section 13(4), which grants the District Forum certain Civil Court–like powers (summoning, discovery, affidavit evidence, requisitioning reports, commissions, etc.) for purposes of procedure on receipt of complaint. However, the court found that Section 13(4) does not provide for returning a complaint with a direction to represent it before the appropriate forum; no other provision pointed out by the respondent permitted such a step.
    • The court also noted limitation provisions: Section 2A requires complaints to be filed within one year of the cause of action, but Section 24A(2) permits condonation of delay for sufficient cause. The court observed that even if jurisdiction were to be found lacking, the first respondent could approach the appropriate forum and invoke Section 24A(2) if delay were an issue.
    • Given the statutory allocation of territorial jurisdiction and the absence of an enabling provision for the Madras Forum to transfer or return the complaint for refiling elsewhere, the court concluded that the complaint as filed before the Madras Forum could not be sustained in that forum.
  3. Reliance on precedent: The court cited established Supreme Court authorities describing the scope and purpose of the writ of prohibition (M/s East India Commercial Co., Govinda Menon, and Isha Beevi). These authorities establish that prohibition is available where an inferior tribunal acts without jurisdiction or exceeds its jurisdiction and that the writ is supervisory to keep inferior tribunals within their limits.
  4. Conclusion of analysis: On the statutory reading and the authorities cited, the court found that the Madras District Consumer Forum lacked territorial jurisdiction to entertain O.P. No.1223/93 against the petitioner and that the High Court could therefore issue a writ of prohibition to restrain it from proceeding further.

Holding and Implications

Holding:

The writ petition is allowed and a writ of prohibition is issued restraining the District Consumer Disputes Redressal Forum at Madras (the second respondent) from proceeding with O.P. No.1223 of 1993 filed by the first respondent.

Implications:

  • Direct effect: The Madras District Consumer Forum is prohibited from further proceeding with O.P. No.1223/93; the writ petition succeeds as prayed and the petition was allowed with no costs awarded.
  • Broader implications: The opinion confines its analysis to the statutory territorial jurisdictional rules in the Consumer Protection Act and reliance on established principles governing the writ of prohibition. The opinion does not purport to lay down a new precedent beyond applying the statutory scheme and cited authorities to the facts; its immediate effect is to prevent the Madras Forum from proceeding with the particular complaint and to indicate that the appropriate forum is territorially linked to where the opposite party resides or where the cause of action arose.

No information beyond the text of the provided opinion has been added. All statements above reflect only the content and reasoning present in the opinion.

Show all summary ...

1. The prayer in the writ petition reads as follows:-

“To issue a writ of prohibition or any other appropriate writ, order or direction, prohibiting the District Consumer Disputes Redressal Forum at Madras, the second respondent herein from proceeding with O.P 1223/93 of the first respondent herein.”

2. The case of the petitioner as seen from the affidavit filed in support of the above writ petition is briefly stated hereunder:-The petitioner is one of the senior members of the Tiruppattur Bar. According to him, the first respondent herein has preferred a complaint in O.P No. 1223 of 93 before the Consumer Disputes Redressal Forum at Madras, the second respondent herein, under Sec. 12 of the Consumer Protection act, 1986, read with rule 5 of the Tamil Nadu Consumer Protection Rules, 1988 against the petitioner claiming Rs. 4,375-75 and Rs. 21,612-35 on the alleged ground that he failed and neglected to discharge his professional duties in filing a suit on behalf of the 1st respondent herein and he has not diligently conducted R.E.P 265 of 91 in O.S No. 4458 of 85 on the file of District Munsif, Tiruppathur, North Arcot, Ambedkhar District. It is further averred that the very complaint itself is false and the first respondent has chosen to prefer the complaint only for the purpose of teasing and annoying the petitioner for incorrect and inappropriate reasons.

3. It is averred in the affidavit that the first respondent is not entitled to seek any relief under the provisions of the Consumer Protection Act, 1986, as the first respondent will neither be a consumer nor the above O.P 1223 of 93 will be a complaint, in respect of consumer dispute or the subject matter is regarding defect or deficiency regarding service under Sec. 2 of the said Act. The members of the legal profession are fully controlled and governed by the Advocates Act within the jurisdiction of the respective Bar Councils of the States and the All India Bar Council in each and every professional transactions between the members of the bar any their clients. That being so, the first respondent is neither entitled to claim any relief against the petitioner under the provisions of the Consumer Protection Act, 1986, nor the District Consumer Disputes Redressal Forum is competent to entertain or enquire into the above said O.P 1223 of 93. The District Consumer Disputes Redressal Forum at Madras has no jurisdiction, particularly with the consumer dispute, if at all, could be aquitated only before the District Forum of North Arcot Ambethkar District, where the cause of action is alleged to have taken place within Tiruppattur, North Arcot Ambedhkhar District. Hence the Madras District Consumer Disputes Redressal Forum has no jurisdiction or authority or power to enquire into the said complaint. With these averments, the petitioner has approached this Court for issuance of writ of prohibition, prohibiting the District Consumer Forum at Madras from proceeding with O.P No. 1223 of 93.

4. The first respondent herein field a counter affidavit wherein he has denied all the averments made in the affidavit filed in support of the writ petition. He has also averred in the counter that the issue of jurisdiction can be decided by the District Forum after considering the cause of action of the complaint. The District Forum only after considering the issue on merit can decide the jurisdiction issue. Therefore, on this score the writ cannot be maintained. It is also contended that the petitioner had filed his version and the case was posted for filing proof affidavit and documents and at that stage, the petitioner had filed the present writ petition. With these averments the first respondent prayed for dismissal of the writ petition.

5. I have heard Mr. R.M Krishna Raju, learned counsel appearing for the petitioner and Mr. K. Srinivasan, learned counsel appearing for the first respondent.

6. Mr. R.M Krishna Raju, learned counsel appearing for the petitioner raised the following two submissions:-

(i) The first respondent is not entitled to seek any relief under the provisions of the Consumer Protection Act, 1986 (hereinafter referred to as “the Act”) as the first respondent will neither be a consumer nor the above O.P will be a complaint in respect of consumer dispute in terms of Sec. 2 of the Act.

(ii) As per Sec. 11 (2) of the Act the second respondent, namely the District Consumer Disputes Redressal Forum at Madras, has no territorial jurisdiction to the dispose of the said complaint. In view of the fact that the second respondent has not jurisdiction in respect of the matter in dispute, this Court has ample power to issue a writ of prohibition.

7. On the other hand, Mr. K. Srinivasan, after pointing out Sec. 13 (4) of the Act submitted that the second respondent has jurisdiction to dispose of the said complaint. He further submitted that even otherwise the issue can be decided by the second respondent itself and there is not need to consider the same in the present writ petition.

8. As far as the first submission regarding the maintainability of the complaint against the petitioner, in view of the decision of this Court reported in Srimathi v. Union of India, 1996 (2) C.T.C 402 there is no need to probe further. In other words, in view of the law laid down by this court as affirmed by the Apex Court, the complaint before the Consumer Disputes Redressal Forum is maintainable. Hence, the learned counsel for the petitioner himself has not pressed with regard to his first objection.

9. Regarding the second objection, namely, the jurisdiction of the second respondent, the learned counsel for the petitioner submitted that no cause of action either wholly or in part arose within the jurisdiction of the second respondent since all the proceedings have taken place only at District Munsif s Court. Tiruppathur, North Arcot Ambedkhar District.

10. In order to appreciate the second objection of the learned counsel for the petitioner, let us see the relevant provisions in the Act. Sec. 11 deals with jurisdiction of the District Forum which runs as follows: -

“11. Jurisdiction of the District Forum:- (1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods of services and the compensation, if any, claimed does not exceed rupees five lakhs.

(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction;-

(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain; or (b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or have a branch office or personally works for gain, provided that in such case either the permission of the District Forum is give, or the opposite parties who do not reside, or carry on business, or have a branch office or personally work for gain, as the case may be, acquiesce in such institution; or

(b) the cause of action, wholly or in part arises.”

A reading of Sec. 11 (2) (a) of the Act clearly shows that complaint if any shall be instituted in a District Forum where the opposite party or parties at the time of institution of the complaint actually and voluntarily resides or carries on business or personally works for gain. In our case the complaint is against the petitioner who is an advocate practicing at Tiruppathur. Hence, as per the said provisions, it is not open to the 1st respondent to file a compliant against the petitioner at the District Consumer Forum, Madras. The other relevant clause is Sec. 12 (2) (c) of the Act which deals with cause of action wholly or in part. According to the petitioner, the case of the complaint is that the petitioner failed and neglected to discharge the professional duties in filing suit and has not prosecuted the Execution Petition No. 265 of 91 in O.S No. 4458 of 85 on the file of District Munsif, Tiruppathur, North Arcot Ambedhkhar District. So no cause of Action much less part arise within the jurisdiction of the second respondent in so far as the complaint as laid by the first respondent.

11. No doubt, Mr. Srinivasan, learned counsel appearing for the first respondent refers to Sec. 13 (4) of the Act which is extracted hereunder:-

“Sec. 13 (4): For purposes of this section, the District Forum shall have the same powers as are vested in Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:-

(i) the summoning and enforcing attendance of any defendant or witness and examining the witness on oath;

(ii) the discovery and production of any document or other material object producible as evidence;

(iii) the reception of evidence on affidavits;

(iv) the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source;

(v) issuing of any commission for the examination of any witness; and

(vi) any other matter which may be prescribed.” It is true that for the purpose of Sec. 13 namely, procedure on receipt of complaint, the District Forum shall have the same powers as are vested in Civil Court under the Code of Civil Procedure, while trying a suit in respect of some of the matters enumerated therein.

In our case if the District Forum at Madras, second respondent holds that it has no jurisdiction, there is no provision for returning the complaint with a direction to represent the same before the appropriate forum, since the same has not been incorporated in sub-Sec.(4) of Sec. 13 of the Act referred to above. Except the above said sub-Sec.(4) of Sec. 13, the learned counsel for the first respondent is unable to point out another provisions in this regard.

12. It is also relevant to note that as per Sec. 2A of the Act, a complaint has to be made within the District Forum, the State Commission or the National Commission within one year from the date on which the cause of action has arisen. However, Sub- Sec.(2) of Sec. 24A enables the above mentioned authorities to condone delay if there is sufficient cause for not filing the complaint within such period. Hence, even if I hold that the second respondent has no jurisdiction in view of the provisions pointed above if the first respondent still feels pointed above if the first respondent still feels he has a cause, it is always open to him to approach the appropriate Forum of course by invoking Sec. 24A 92) of the Act.

13. If the petitioner establishes that the second respondent is incompetent to issue notice or it has no jurisdiction, this Court can issue a writ or prohibition for which the following decisions have been cited by Mr. R.M Krishna Raju:-

(i) M/s. East India Commercial Company Ltd., v. Collector of Customs., A.I.R 1962 SC 1893.; (ii) Govinda Menon v. Union of India, A.I.R 1967 SC 1274.; (iii) Isha Beevi v. Tax Recovery Officer, A.I.R 1975 S.C 2135: (1976) 1 S.C.R 681.

In the first case, namely, M/s. East India Commercial Company Limited v. Collector of Customs A.I.R 1962 SC 1893 the Apex Court has held thus:-

“The first question is whether the petitioner filed by the appellants under Art. 226 of the Constitution for the issue of a writ in the nature of prohibition is maintainable in the circumstances of the case.

A writ of prohibition is an order directed to an inferior Tribunal for bidding it from continuing with a proceeding therein on the ground that the proceeding is without or in excess of jurisdiction or contrary to the laws of the land, statutory or otherwise. Mackonochie v. Lord Penzane, 1881 A.C 424 and Halsbur's Laws of Englad. Vol. 2, 3rd Edition.”

14. In the other decision, namely, Govinda Menion v. Union of India, A.I.R 1967 SC 1274 the Appex Court with regard to jurisdiction for grant of prohibition has observed in the following manner:-

“The jurisdiction for grant of a writ of prohibition is primarily supervisory and the object of that writ is to restrain Courts or inferior tribunals from exercising a jurisdiction which they do not possess at all or else to prevent them from exceeding the limits of their jurisdiction. In other words, the object is to confine Courts or tribunals of inferior or limited jurisdiction within their bounds. It is well settled that the writ or prohibition lies not only for excess of jurisdiction or for absence of jurisdiction but the writ also lies in a case of departure from the rules of natural justice.”…..”If there is want of jurisdiction then the matter is coram non judice and a writ of prohibition will lie to the Court or inferior tribunal for bidding it to continue proceedings therein in excess of its jurisdiction.”

14. Finally in the last decision, namely, Isha Beevi v. Tax Recovery Officer, A.I.R 1975 S.C 2135: (1976) 1 S.C.R 681) the same view has been reiterated once again by the Apex Court.

15. I have already demonstrated with reference to the provisions in the Act and in the absence of enabling provision as found in the Code of Civil Procedure, the complaint as filed by the first respondent before the second respondent cannot be sustained. In those circumstance, as observed by the Supreme Court in the above referred decisions, this Court can very well issue writ of prohibition. Accordingly, writ of prohibition is issued prohibition the second respondent, namely District Consumer Disputes Redressal Forum at Madras from proceeding with O.P 1223 of 93 filed by the first respondent herein. Net result, the writ petition is allowed as prayed for. No costs.