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Terming the approach of the National Consumer Disputes Redressal Commission (NCDRC) to be erroneous, the top court on Monday opined that the commission cannot return a complaint unadjudicated.

A bench of Justices Hemant Gupta and Justice V Ramasubramaniam observed that even if the NCDRC is of the opinion that an unnecessary party has been attached or the pleadings are contradictory, it should strike down the said party rather than returning the complaint unadjudicated.

Court said, "The striking of surveyor from the array of parties would not make the complaint disjoined, as it was duty of the NCDRC to strike of an unnecessary party. The complaint cannot be returned unadjudicated with liberty to file fresh complaint. The complaint can be filed within the period of limitation. Once the period of limitation has expired, the appellant cannot file the second complaint...".

Bharmaputra Biochem Private Limited filed an appeal before the Apex Court challenging an order passed by the NCDRC whereby a complaint filed by it was returned unadjudicated with liberty to file a fresh complaint within 30 days. 

Noting that unnecessary parties had been arrayed in the case, the NCDRC, however, directed the company to make the insurance company alone the 'sole opposite party in the fresh complaint and to seek for findings of 'deficiency in service' and/ or 'unfair trade practice' and relief in the form of compensation etc. against it.

In the impugned order, the NCDRC noted that the contents and articulation of the complaint were such that the insurance co. and its surveyor & loss assessor had been inextricably conjoined together.

Therefore, the NCDRC held that the material distinction between the complainant co. being a 'consumer' of the insurance co. alone, and not of its surveyor & loss assessor had also been completely lost. 

However, refusing to agree with the NCDRC's observations, the top court held,

"As a part of principles of natural justice, if there are allegations against the Surveyor and the loss assessor, an opportunity should have been given to such person to rebut the allegations. The surveyor was not impleaded to claim compensation but as a proper party in view of the allegations leveled against it. Therefore, in the facts and circumstances of the case, we find that the Surveyor and the loss assessor was in fact the necessary party..."

Consequently, the bench set aside the order passed by the NCDRC and remitted the matter for fresh decision in accordance with law. 

Case Title: Bharmaputra Biochem Private Limited v. New India Assurance Company & Anr.