Five years ago, you have been duped by a consumer finance company, can you still file a complaint in a consumer court? Yes, till a few years back without any problem, because the law of limitation - which states that a case must be filed in any civil court within three years from the date of accrual of the cause of action - did not apply to cases under the Consumer Protection Act. At the time of enaction in 1986, the Act had not provided any period of limitation. But today thanks to an amendment to the Act in 1993 that says only a two-year waiting period is allowed, there have been contradicting verdicts.
While there is no ambiguity with regard to the limitation period for cases being filed after the amendment of 1993, confusion still prevails with regard to cases filed prior to 1993. This is because Section 24-A, which was added to the Consumer Protection Act, has no retrospective effect. It applies only to the complaints which came after June 18, 1993.
Two cases that recently came up in the Supreme Court of India further fuelled the confusion over the limitation period.
In the judgement handed down by the Supreme Court on August 24, 1999 in the France B.Martine and Another vs Mrs Mafalda Maria Teresa Rodrigues CTJ 553 (SC) (CP) case, it has been categorically held that `when the legislature, in its wisdom, thought it appropriate not to prescribe the period of limitation under the Consumer Protection Act, the courts cannot apply the provisions by implication.'
The complainant in this case had taken possession of a flat from the appellants, promoters/developers, in September, 1985, on payment of the whole of the agreed consideration. It was the complainant's case that the promoters/developers did not execute the sale deed of the flat on some false pretexts. She complained to the District Forum on June 18, 1992. The complaint was dismissed as time-barred.
On appeal to the State Commission and then to the National Commission, the order of the District Forum was set aside and the promoters/developers were directed to execute the agreement. Aggrieved by the order of the National Commission, they appealed before the Supreme Court. The apex court upheld the decision of the lower commissions thus maintaining that the law of limitation was not applicable to the consumer cases and the complaints that can be related to the period before June, 1993 would not be treated as time-barred even if filed very belatedly.
Again another Bench of the Supreme Court delivered a judgement on January 25, 2000 in the matter of Corporation Bank & Another vs Navin J.Shah reported in 2000 CTJ 81 (SC) (CP) in which the apex court ruled that the law of limitation applicable to civil suits, namely the three-year period, will apply to consumer cases as well. This was a case about the realization of amounts from an exporter exporting tea to Sudan. Navin J.Shah had filed a complaint before the National Consumer Disputes Redressal Commission which was decided in his favour. The Corporation Bank filed an appeal against the aforesaid order before the Supreme Court. The Court allowed the appeal holding that the National Commission `had not duly applied its mind to the relevant aspects.'
The apex court observed in this case that `the transactions in question took place in the years 1979 and 1981. The difficulties in realisation of the amounts due from the consignee also became clear at that time.
The position before the Commission was filed on September 25, 1992 that is clearly a decade after. A claim could not have been filed by the respondent at this distance of time. Indeed at the relevant time there was no period of limitation under the Consumer Protection Act to prefer a claim before the Commission but that does not mean that the claim could be made even after unreasonably long delay'. The Supreme Court further observed that `the claim if at all was to be made, ought to have been made within a reasonable time thereafter. What is reasonable time to lay a claim depends upon facts of each case.
In the legislative wisdom, three years period has been prescribed as the reasonable time under the Limitation Act to lay a claim for money. We think, that period should be the appropriate standard adopted for computing reasonable time to raise a claim in a matter of this nature'.
Inspite of contradicting rulings, the rule that most consumers will be advised to follow is this: cases with a cause of action arising after June, 1993 would have a two years optimum period for launching a complaint whereas the cases with cause of action prior to that would have a period of limitation of three years.
Rosy Kumar
(The author is an advocate and editor of Consumer Protection and Trade Practices Journal)
