Consumer laws aimed at fast remedy

The Supreme Court held last week that consumer forums could deal with complaints of deficiency in service even if there were other remedies provided under the state legislation.

In this case, the dispute was between a co-operative agricultural credit society and one of its members. The member, M Lalitha, had pledged paddy bags for obtaining a loan. When the society demanded return of the loan, she raised a dispute before the district forum.

It held that there was deficiency in service and negligence on the part of the co-operative society. The society appealed to the Tamil Nadu state consumer commission.

It held that the complaint of Lalitha was not maintainable because disputes between the co-operative and its members should be decided by the mechanism provided in the Tamil Nadu Co-operative Societies Act.

Therefore, she moved the National Commission. It set aside the state commission's order and restored the district forum's order. Therefore, the co-operative society moved the Supreme Court.

The Bench comprising Justice Shivaraj Patil and Justice DM Dharmadhikari discussed the earlier judgments of the Supreme Court and upheld the view of the national commission.

The consumer legislation was intended to provided a speedy remedy and therefore it should be interpreted liberally and purposefully, the court emphasised.

On the TN Co-operative Societies Act, the court said: "Merely because the rights and liabilities are created between the members and the management of the society under the Act and forums are provided, it cannot take away or exclude the jurisdiction conferred on the forums under the Consumer Act expressly and intentionally to save a definite cause in terms of the objects and reasons of the Act."