NATIONAL INSURANCE CO LTD Vs. MAYA GANDHI

JUDGEMENT

(1.) BEFORE dealing with the matter on merits, we would caution the Fora constituted under the Consumer Protection Act, 1986, all over the country, that powers vested in the Consumer Fora under Section 27 of the Consumer Protection Act 1986 are to be exercised cautiously and are not to be misused or used in arbitrary manner. The equitable jurisdiction conferred on the Consumer Fora is to be exercised in just and equitable manner.

(2.) IN this case, it is the contention of the learned counsel for the petitioner that for extraneous reasons, against the Chairman-cum- Managing Director of the National Insurance Company Ltd. non-bailable warrants were issued by the District Forum despite the fact that the District Forum was informed that the insurance company has preferred an Appeal against the order passed by it. Further, the warrants were issued even though the District Forum had attached the account of the insurance company with the Punjab National Bank, Bareilly, on 13.12.1999. Surprisingly, the District Forum has also observed that for recalling the warrants, an undertaking should be given by the Divisional Manager of the insurance company to the effect that no Appeal would be filed or if filed, the same would not be pressed.

(3.) NO doubt, the Consumer Fora is required to exercise equitable jurisdiction so that harassed consumers do not suffer. But, that would not empower the Consumer Fora to exercise jurisdiction under Section 27 of the Act in any arbitrary and unjustified manner.