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This is an archive article published on September 20, 2011

Global firms answerable to consumer courts: SC

In a decision of far-reaching impact,the Supreme Court has held that international companies are answerable to Indian consumer courts for deficiency in services.

In a decision of far-reaching impact,the Supreme Court has held that international companies are answerable to Indian consumer courts for deficiency in services.

Upholding the National Consumers Disputes Redressal Commission (NCDRC) order to a Lebanese courier company to pay a compensation of $71,615.75 to a Mumbai-based firm,a Bench of Justices G S Singhvi and H L Dattu ruled that consumers within the definition of the Consumers Protection Act (CP) could avail remedy for deficiency in service from both consumer fora and regular courts.

In our view,the protection provided under the CP Act to consumers is in addition to the remedies available under any other statute. It does not extinguish the remedies under another statute but provides an additional or alternative remedy, the court said.

Holding that they were not inclined to agree with the argument that the NCDRC had gone against international law,the judges said,Therefore,we do not find any legal infirmity in the National Commission exercising its jurisdiction as the same can be considered a court within the territory of a high contracting party for the purpose of Rule 29 of the Second Schedule to the CA Act and the Warsaw Convention.

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