Applications To Condone Delay In Filing Version In Consumer Cases Pending On 04.03.2020 Not Impacted By CB Judgment : SC Clarifies
Settling a conflict between two division bench judgments, a 3-judge bench of the Supreme Court on Tuesday clarified that the applications to condone the delay of more than 45 days in filing the version of the opposite party in consumer cases, which were pending as of March 4, 2020, will not be impacted by the ruling of the Constitution Bench judgment in the case New India Assurance...
Settling a conflict between two division bench judgments, a 3-judge bench of the Supreme Court on Tuesday clarified that the applications to condone the delay of more than 45 days in filing the version of the opposite party in consumer cases, which were pending as of March 4, 2020, will not be impacted by the ruling of the Constitution Bench judgment in the case New India Assurance Company Limited vs. Hilli Multipurpose Cold Storage Private Limited, which had held that Consumer Forum cannot condone the delay of more than 45 days in filing the version of the opposite party.
It may be noted that March 4, 2020, is the date of the said Constitution Bench judgment.
In the instant case Diamond Exports and another versus United India Insurance Co Ltd and others, a three judgment bench comprising Justices DY Chandrachud, Surya Kant and Vikram Nath settled the divergent views expressed in the judgments in Daddy Builders Private Ltd vs Manisha Bhargava LL 2021 SC 78 and Dr. A Suresh Kumar vs. Amit Agarwal LL 2021 SC 290.
The Constitution Bench judgment had declared that it will operate prospectively. The prospective impact of this judgment was understood differently in Daddy Builders and Dr.A Suresh Kumar cases. In Daddy Builders, a two-judge bench comprising Justice DY Chandrachud and MR Shah held that the delay condonation applications which were pending as on March 4, 2020, will be impacted by the Constitution Bench judgment. According to Daddy Builders, the prospective application of the Constitution Bench judgment will only save delay condonation applications that were already decided before the date of the said judgment.
"In our view, the prospective operation of the Judgment in the case of New India Assurance Company Limited (supra) ought to cover both sets of the cases in which delay in filing written reply stood condoned after accepting the application for condonation of delay in filing written statement/reply as well as the cases where the decision on condonation of delay in filing written replies were pending on 4th March, 2020. Once an application is filed for condonation of delay, there may be cases where such applications are decided upon on dates earlier than applications already filed but yet to be determined. We do not have any laid down administrative mechanism to decide in what manner applications of this nature would be decided and the consumer fora or the Courts apply their own discretion on the basis of various relevant factors involved in individual cases, to prioritise their hearing.
In our opinion, it would be artificial distinction to distinguish between applications for condonation of delay already decided before 4th March, 2020 and the applications for condonation of delay pending on that date. So far as persons with pending applications for condonation of delay in filing written replies are concerned, their right to have their applications for condonation of delay in filing written replies to be considered, would stand crystallised on 4th March, 2020. Such right has also been recognised in the case of Reliance General Insurance Company Limited (supra). Such right could be extinguished only by specific legal provisions. In the event the Constitution Bench judgment had altogether negated the right to have delay in filing written statement condoned beyond the period of 45 days, the right of such applicants could stand extinguished. But as the judgment of the Constitution Bench is to operate prospectively, in our understanding of the said judgment, those with pending applications for condonation of delay would retain their right to have their applications considered".
Case Title : Diamond Exports and another versus United India Insurance Co Ltd and others
Citation : LL SC 736
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