2021 (1) TMI 804 - SC - Indian Laws

Condonation of delay in filing statements - Booked flats not delivered in time - Section 38(2)(a) of the Consumer Protection Act, 2019 - HELD THAT - In the present matter, it is an admitted fact that the period of limitation of 30 days to file the written statement had expired on 12.08.2020 and the extended period of 15 days expired on 27.08.2020. This period expired when the order dated 23.03.2020 passed by this Court in SMW(C) No.3 of 2020 was continuing - the limitation for filing the written statement in the present proceedings before the National Commission would be deemed to have been extended as it is clear from the order dated 23.03.2020 that the extended period of limitation was applicable to all petitions/ applications/suits/appeals and all other proceedings. As such, the delay of four days in filing the written statements in the pending proceedings before the National Commission deserves to be allowed, and is accordingly allowed. It is directed that the written statement filed by the appellant shall be taken on record and the matter shall thereafter be proceeded with expeditiously and in accordance with law - appeal allowed.

Summary

Issues involved:
Challenge to order of National Consumer Disputes Redressal Commission regarding filing of written statement beyond the prescribed period under Consumer Protection Act, 2019.

Detailed Analysis:
The batch of civil appeals was filed by the appellant/builder challenging the National Commission's order dated 07.09.2020. The respondents had booked flats with the appellant, but since the flats were not delivered on time, they filed Consumer Complaints seeking a refund. The National Commission issued notices in June 2020, which the appellant received on 13.07.2020. The appellant filed the written statement on 31.08.2020, beyond the prescribed period of 45 days, leading to the National Commission declining to accept it based on a Supreme Court decision.

The Constitution Bench decision in New India Assurance Co. Ltd. v. Hilli Multipurpose Cold Storage (P) Ltd. held that the Consumer Court cannot extend the time for filing a response beyond 45 days. However, a subsequent order dated 23.03.2020 by the Supreme Court extended the period of limitation due to the challenges posed by the Covid-19 pandemic. This order was still in effect when the appellant filed the written statement beyond the 45-day limit. The Court found that the extended limitation applied to all proceedings, including filing written statements, and therefore allowed the delay of four days in this case.

Consequently, the Supreme Court allowed the appeals, set aside the National Commission's order, directed the written statement to be taken on record, and instructed the matter to proceed expeditiously and in accordance with the law. The Court made these decisions considering the exceptional circumstances and the extension of limitation granted due to the Covid-19 situation. The appeals were allowed with no order as to costs.