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2011 (12) TMI 536 - SC - Indian LawsWhether the Division Bench of the Delhi High Court was justified in entertaining the writ petitions filed by respondent No. 1 and others against order dated 26.12.2006 passed by the State Consumer Disputes Redressal Commission (for short, the State Commission ) ignoring that statutory remedy of appeal was available to them under Section 19 of the Consumer Protection Act, 1986?
Issues Involved:
1. Jurisdiction of the Delhi High Court in entertaining writ petitions despite the availability of an alternative statutory remedy under Section 19 of the Consumer Protection Act, 1986. 2. Legitimacy of the State Consumer Disputes Redressal Commission's orders regarding unsolicited calls and SMS. 3. Directions issued by the State Commission and their compliance. 4. High Court's decision to set aside the State Commission's directions and its implications. Detailed Analysis: 1. Jurisdiction of the Delhi High Court: The primary issue addressed is whether the Delhi High Court was justified in entertaining writ petitions against the State Commission's order dated 26.12.2006, despite the availability of an appeal under Section 19 of the Consumer Protection Act, 1986. The Supreme Court emphasized that the High Court should exercise restraint and not entertain writ petitions when a statutory remedy is available. The Court reiterated that the power to issue writs under Article 226 of the Constitution is not curtailed by parliamentary legislation, but it should not be exercised in a manner that bypasses statutory remedies. The Court cited several precedents, including *Thansingh Nathmal v. Superintendent of Taxes* and *Titaghur Paper Mills Co. Ltd. v. State of Orissa*, to support the principle that writ petitions should not be entertained if an effective alternative remedy is available. 2. Legitimacy of the State Commission's Orders: The State Commission had issued orders to prevent the disclosure of personal information by mobile service providers and to stop unsolicited calls and SMS from banks and financial institutions. The Commission also imposed penalties on the service providers and banks for non-compliance. The Supreme Court noted that the High Court did not consider the jurisdictional provisions of Sections 17 and 19 of the 1986 Act and overlooked the availability of an appeal mechanism. The Court highlighted that the 1986 Act is designed to provide a simple, inexpensive, and speedy remedy for consumers, and the State Commission's orders were within its jurisdiction to protect consumer interests. 3. Directions Issued by the State Commission: The State Commission's orders included several directions to mobile service providers and financial institutions to prevent unsolicited calls and SMS. The Commission imposed penalties and awarded compensation to the complainant. The Supreme Court observed that the High Court failed to consider the legislative intent and the object of the 1986 Act in its decision to set aside these directions. The Court emphasized that the State Commission's orders were aimed at addressing consumer grievances and protecting their rights. 4. High Court's Decision to Set Aside the State Commission's Directions: The High Court had set aside the directions contained in paragraph 38(i) and (ii) of the State Commission's order and expunged certain remarks. The Supreme Court found that the High Court erred in entertaining the writ petitions and setting aside the State Commission's directions without considering the statutory remedy of appeal. The Court allowed the appeal, set aside the High Court's order, and directed the respondents to avail the alternative remedy of appeal under Section 19 of the 1986 Act. The Court also provided liberty to the respondents to apply for a stay of the State Commission's order and directed the National Commission to decide any such application on its own merits. Conclusion: The Supreme Court concluded that the Delhi High Court should not have entertained the writ petitions and miscellaneous petitions under Articles 226 and 227 of the Constitution, given the availability of an effective alternative remedy under Section 19 of the Consumer Protection Act, 1986. The appeal was allowed, and the High Court's order was set aside, with directions for the respondents to pursue the statutory remedy of appeal.
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