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1996 (9) TMI 617 - SC - Indian Laws

Issues Involved:
1. Legality of the State Commission's order passed without the President.
2. Jurisdiction of Consumer Forums to pass interim orders.

Detailed Analysis:

Issue 1: Legality of the State Commission's Order Passed Without the President
The National Commission declared the order of the State Commission as "illegal and void" because it was passed by two members without the President, which is contrary to Section 14(2A) read with Section 10 of the Consumer Protection Act, 1986. The Supreme Court examined whether the absence of the President invalidates the State Commission's order. The relevant provisions include Section 14(2), 14(2A), Section 18, and Section 29A of the Act, along with sub-rules (9) and (10) of Rule 6 of the West Bengal Consumer Protection Rules, 1987. The Court concluded that these provisions must be construed harmoniously to ensure the State Commission remains functional even in the President's absence. Sub-rule (9) allows the senior-most member to discharge the President's functions until a new President is appointed. Therefore, the Supreme Court held that the National Commission erred in declaring the order void solely due to the President's absence and set aside this part of the impugned order.

Issue 2: Jurisdiction of Consumer Forums to Pass Interim Orders
The National Commission also held that the District Forum's interim orders were "totally devoid of jurisdiction" based on the Supreme Court's decision in Morgan Stanley Mutual Fund vs. Kartik Das, which established that Consumer Forums lack the power to issue interim orders pending the resolution of the original complaint. The Supreme Court confirmed this part of the National Commission's order, agreeing that Consumer Forums do not have jurisdiction to pass interim orders.

Conclusion
The Supreme Court partially allowed the appeal. It set aside the National Commission's finding that the State Commission's order was void due to the absence of the President, emphasizing the need for a harmonious interpretation of the Act and Rules to keep the State Commission functional. However, it upheld the National Commission's decision regarding the lack of jurisdiction of Consumer Forums to issue interim orders. Each party was directed to bear its own costs.

 

 

 

 

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