TaxTMI 
TaxTMI 
1996 (8) TMI 510
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....d October 30, 1990 had stayed the proceedings and relegated the parties to arbitration for seeking the remedy. The appellant carried the matter in appeal. By the impugned order the Commission has held that the proceedings before the forums created under the Consumer Protection Act, 1986 (Act 68 of 1986) (for short the "Act") is not a legal proceedings nor is the Commission a judicial authority; therefore, Section 34 of the Arbitration Act, 1940 is not available to stay the proceedings. Thus this appeal by special leave. Shri R.S. Suri, learned Counsel for the appellant contended that the scheme of the Act, in particular Sections 3, 10, 16 and 20 provides for Constitution of District Forum, State Commission and National Commission which con duct proceedings as per the procedure prescribed in Section 13; finality is attached to the order of the forums under Section 24. The orders are enforceable at law by operation of Section 25 and the penalties for contravention get sanctions under Section 27. The hierarchy of appeals provided under Section 19 et al does indicate that the proceedings before the authorities under the Act are legal proceedings and the authorities are j....
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....rder of the National Commission it would appear that the question was not argued. The State Commission expressly has gone into the question and held that by operation of Clause (12) of the quotation there is an arbitration agreement brought into vogue between the parties. It envisages reference to arbitration and thereby there was consensus ad idem. It is seen that when the quotation was offered with the conditions enumerated thereunder, the respondent merely made a counteroffer giving technical details of a part of the offer as counter-offer and when it was accepted by the appellant, the parties agreed for that offer and the counter-offer. In other words, they became an integral part of the contract of the parties. Thereby, Clause (12) of the agreement became as integral part of the contract. Thus, there is an arbitration agreement between the parties. The question then is : whether the appellant has disabled itself by acquiescence to the jurisdiction of the State Commission in seeking adjournment to file the counter. It is true that in the counter-affidavit filed in this Court the respondent has stated that the appellant had taken five adjournments to file the counter. On the ....
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.... the period of limitation within which the complaint shall be laid, namely, within 2 years from the date on which the cause of action has arisen. Section 13 provides for the procedure after receipt of complaint and for disposal thereof. The details thereof are not material except Sub-sections (4), (5) and (6) thereof which have cutting edge as material in this behalf. Sub-section (4) postulates that for the purposes of that section, the District Forum shall have the same powers as are vested in a Civil Court under the CPC, 1908, while trying a suit in respect of the enumerated matters, namely, (i) summoning and enforcing the attendance of any defendant or witness and examining the witness on oath, (ii) discovery and production of any document or other material object producible as evidence, (iii) the reception of evidence on affidavits, (iv) the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source, (v) issuing of any commission for the examination of any witness, and (vi) any other matter which may be prescribed. Under the Rules framed under the Act District Forums have got power to prescribe the procedu....
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....at it subject to any judicial review under Article 226 or 32 of the Constitution. Section 25 gives teeth to the orders passed by the District Forum, State Commission and National Commission; every order can be enforced in the same manner as if it were a decree or an order made by a court in a civil suit pending therein; it shall be lawful for the District Forum, State Commission or National Commission to send its orders, in case of it inability to execute it, for execution to the appropriate executing court. It is obligatory for the executing court to execute the order treating it to be a decree or order of a court sent to it for execution. For specific enforcement of the Act, Section 27 gives sanction of the State for imposing penalties against the traders or persons against whom a complaint is made if fails to comply with the order passed by the aforesaid District Forums, National Commission or State Commission, as the case may be. Thus, it would be seen that the District Forums, State Commission and National Commission have all the trappings of a civil court and judicial authority. The proceedings before them are legal proceedings. Similar controversy was considered by this C....
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....ny person claiming under him commences any legal proceedings against any other party to the agreement or any person claiming under him in respect of any matter agreed to be referred, any party to such legal proceedings, before filing a written statement at any time or before taking any other step in the proceedings, shall apply to the judicial authority before which the proceedings are pending to stay the proceedings; and such authority, if satisfied that there is no sufficient reason why the matter should not be referred in accordance with the arbitration agreement and that the applicant was, at the time when the proceedings were commenced, and still remains ready and willing to do all things necessary to the proper conduct of the arbitration, may make an order staying the proceedings. It would thus be clear that, by invocation of Section 34, the party to the proceedings does not get an automatic right to have the proceedings pending before the judicial authorities stayed. The said section gives discretion to the authorities to stay the proceedings on their satisfying that there was no sufficient reason why the matter should not be referred in accordance with the agreement betw....
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....d purpose of the Act. It is seen that Section 3 envisages that the provisions of the Act are in addition to and are not in derogation of any other law in force. It is true, as rightly contended by Shri Suri, that the words "in derogation of the Provisions of any other law for the time being in force" would be given proper meaning and effect and if the complaint is not stayed and the parties are not relegated to the arbitration, the Act purports to operate in derogation of the provisions of the Arbitration Act, Prima facie, the contention appears to be plausible but on construction and conspectus of the provisions of the Act we think that the contention is not well-founded. The Parliament is aware of the provisions of the Arbitration Act and the Contract Act and the consequential remedy available under Section 9 of the CPC, i.e., to avail of right of civil action in a competent court of civil jurisdiction. Nonetheless, the Act provides the additional remedy. It would, therefore, be clear that the Legislature intended to provide a remedy in addition to the consentient arbitration which could be enforced under the Arbitration Act or the civil action in a suit under the provisions o....