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TMI Blog1998 (12) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... hed under the Constitution, viz., District Courts, High Courts and Supreme Court. According to the petitioner, such a law could not be enacted without amending Constitution in accordance with the procedure as laid down under Article 368 of the Constitution. The establishment of consumer forums is apprehended to result in rendering of conflicting decisions. As the orders passed by the consumer forums cannot be equated with the decree passed by the civil courts within the meaning of section 2(2) of the Code of Civil Procedure, 1908, the same cannot be executed as provided by section 25 of the Act. It is contended, in the alternative, that even if the Act is held to be intra vires , the provisions of section 25 are required to be struck down being unconstitutional and without the authority of law. It is alleged that as the Act negates the rules of justice and no provision is made for transfer of cases under it, the same is required to be declared unconstitutional. The powers vested in the State Commissions are claimed to be offending articles 226 and 227 of the Constitution. 2. In the statement of objections filed on behalf of the respondent, it is submitted that the Act has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Act, virtually substitute the civil courts and the High Courts has been vehemently denied. It is submitted that such agencies are provided only to ensure speedy and cheap remedy for the day-to-day problems faced by the consumers. In the market economy dominated by big business and professionals who provide services, an ordinary consumer not only lacks sufficient knowledge about the market economy, but also the sufficient power to fight these powerful bodies. Keeping in view the cost factor in approaching the civil court apart from delay in getting redressal of the grievances, the legislature in its wisdom and in view of the interest and demands decided to enact the Act. It is claimed that the Act and rules made thereunder provide for easy method of filing complaints, ensuring speedy and cheaper justice. Cumbersome procedure prevalent in the ordinary courts has been sought to be liberalised in the interests of the common man. Under the Act, 533 District Forums, 32 State Commissions and one National Commission have been set up. Till middle of June 1998 about 13,391 complaints were filed before the National Commission, 1,50,491 before the State Commissions and 11,65,947 before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in their duties in issuing appropriate direction when they find that the constitutional safeguards ensuring independence of superior judiciary was likely to be affected by the creation of the Tribunals or other quasi-judicial authorities. If, however, the Tribunal or quasi-judicial authorities are found not to be of full and effective substitute of High Courts, but are found to have been created to perform supplemental role, the Constitutional Courts, would be loath in interfering with the creation of such quasi-judicial Tribunals or authorities. 4. Article 246 authorises, the Parliament to make laws for the whole or any part of the country with respect to the subject-matter enumerated in the List I in the Seventh Schedule of the Constitution. Similarly, the State Legislatures have the powers to make laws with respect to any matters enumerated in the State List. So far as list III, viz., the Concurrent List in the Seventh Schedule is concerned, both the Parliament and the State Legislatures can make laws and in case of inconsistency between the laws made by the Parliament and laws made by the State Legislature, the law made by the Parliament shall prevail and the law made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel with respect to the nature of the authorities/bodies/agencies created under the Act lose all their significance in view of the authoritative pronouncement on the subject by the Supreme Court in Laxmi Engg. Works v. P.S.G. Industrial Institute AIR 1995 SC 1428. The Court in that case found that after good amount of consultations with Governments and international organisations, the Secretary General of the United Nations submitted draft guidelines for consumer protection to the Economic and Social Council (UNESCO) in 1983. After extensive discussions and negotiations among Governments on the scope and content of the guidelines, the General Assembly of the United Nations adopted the guidelines which, inter alia, provided the following objectives : "1. Taking into account the interests and needs of consumers in all countries, particularly, those in developing countries, recognizing that consumers often face imbalances in economic terms, educational level, and bargaining power, and bearing in mind that consumer should have the right of access to non-hazardous products, as well as the importance of promoting just, equitable and sustainable economic and social development, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness-to-business disputes. This scheme of the Act, in our opinion, is relevant to and helps in interpreting the words that fall for consideration in this appeal." (p. 1431) 7. In view of the law laid down by the Apex Court in Laxmi Engg. Works case ( supra ) it cannot be held that the agencies created under the Act were in any way parallel hierarchy to the judicial courts. In that event, the power of the Parliament to enact the Act can be referred to article 248 read with Entry 97 of List I of the Seventh Schedule, dealing with the powers of the Parliament to make law with respect to residuary matters. In no way the Parliament can be held to be not having the power to make the law in the form of the Act. All the contentions in this behalf being without substance are rejected. It may be noticed that besides Laxmi Engg. Works case ( supra ) the Supreme Court also dealt with various aspects of the Act in New India Assurance Co. Ltd. v. G.N. Sainani [1997] 3 Comp. LJ. 380 and Common Cause, a Registered Society v. Union of India [1997] 1 Comp. LJ 30 (SC) and did not find any legal infirmity or constitutional vice in the Act. 8. The argument that the Act violated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dressal of grievances of consumers." 9. In L. Chandra Kumar v. Union of India AIR 1997 SC 1125, the Apex Court found that since independence, the population explosion and the increase in litigation had resulted in accumulation of pendency in the High Courts which necessitated the setting up of various Tribunals under the constitutional scheme. In discharging the duty of dispensation of justice such quasi-judicial Tribunals or agencies cannot be termed to be a substitute for the High Courts and the Supreme Court which have, under the constitutional scheme, been specifically entrusted with the obligation of dispensation of justice and for the enforcement of the rule of law. The function of the Tribunals, in that case being the Administrative Tribunal, was held to be only supplementary and not a substituted. The power of the constitutional Courts under articles 32 and 226 which was described as the heart and soul of the Constitution was declared to have not been taken away by the creation of quasi-judicial Tribunals. The Act being a welfare legislation has to be interpreted keeping in view the purpose and object for which it was enacted. The preamble of the Act indicates tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingle Bench judgment of the Calcutta High Court and attempted to persuade us to agree with the reasoning given therein for holding that the Act was unconstitutional and beyond the scope of legislative competence of the Union Parliament. For the reasons noticed hereinabove, we do not find any substance in such argument and are of the opinion that the view taken by the learned Single Judge of Calcutta High Court is not sound when tested on the touchstone of constitutional scheme and various declarations already made by the Supreme Court. We are of the firm view that the forums created under the Act do not amount to parallel system of Courts or a substitute of the ordinary Courts entrusted with the dispensation of justice. No offender can claim a fundamental right to be tried by a specified forum or a Court. The learned Single Judge of Calcutta High Court appears to have ignored the purpose, scheme, object and international commitments under which the Union Parliament had enacted the law. The reference to article 368 appears to be illusory in the instant case. Once it is held that the Act has been enacted in exercise of the powers vesting in the Parliament under the constitutional sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , shall execute the orders as if it were a decree or order sent to it for execution." A perusal of the sections shows that the orders passed by the Forum, the State Commission or the National Commission have been symbolically and by legal fiction treated as decrees for the purposes of execution. Despite making a provision for the enforcement of the aforesaid orders as a decree, no provision has been made for applying the provisions of order 21 of the Code for the purposes of execution of the aforesaid orders. The provision of the Code have also not been made applicable either in general or in particular with reference to specified Chapters, orders and rules. There appears to be a lacuna in the Act which may be remedied by appropriately amending it. Under the existing scheme of the Act, the order passed by the Forum, State Commission or National Commission may be enforced by such Forum and the Commissions after due notice to the opposite party, but resort to the provisions of order 21 cannot be made in the absence of the applicability of the said order to the execution proceedings relating to the orders passed by the Forum and the State Commission. It follows, therefore, that as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel appearing for the respondents has not brought to our notice any provisions of law or authority to hold that while executing its orders, the District Forum and Commission under the Act can also have resort to various modes of execution of its orders, as provided under the rules incorporated in order 21. 15. We are, therefore, satisfied that no provision of the Act including section 25 but excluding the proviso to section 27, which has been declared as unconstitutional in Paramjit Singh v. Union of India [1999] 4 Comp. LJ. 465 (Kar.) suffers from any vice rendering it unconstitutional as canvassed on behalf of the petitioner. We are of the firm opinion that the Act has been validly enacted by the Parliament and the plea regarding the same being without legislative competence is totally unfounded being concocted. We, however, feel that while executing the orders, the District Forum and the Commissions under the Act cannot resort to coercive methods of execution provided under various provisions of order 21 and upon notice, if the party against whom the order is passed fails to comply the order, such Forum and Commission, after recording its inability to execute the same, c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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