J.J. Merchant v. Shrinath Chaturvedi

Facts

In a medical negligence complaint, the opposite party (doctors/hospital) contended that allegations of professional negligence raised complicated questions requiring detailed evidence and cross-examination that only a civil court could try, and resisted the summary procedure of the consumer forum. The dispute also raised the time allowed to file the written statement.

Issues

• Can complaints involving medical negligence and complicated questions of fact be adjudicated by consumer fora under their summary procedure, or must they be relegated to civil courts?
• What is the time limit for the opposite party to file its written statement/reply, and can it be extended at the forum's discretion?

Arguments

The opposite party argued that intricate negligence issues require a full civil trial with oral evidence and cannot be tried summarily, and that the reply-filing time was directory. The complainant argued the Act provides a complete, speedy mechanism empowering fora to take evidence and that the statutory time limit is mandatory.

Held

The Supreme Court held that consumer fora are competent to decide complaints including medical negligence and complex matters; the Act equips them to record evidence, including by affidavit and examination of experts, so parties cannot defeat the summary remedy by alleging complexity. On procedure, the Court held that the opposite party must file its reply within 30 days from receipt of notice, extendable by not more than a further 15 days, and the forum has no power to extend this period — preserving the Act's object of expeditious disposal.

Ratio decidendi

Consumer fora can summarily adjudicate even complex/medical-negligence disputes, and the time to file the written statement (30 days, extendable by up to 15 days) is mandatory and not extendable.

Significance

A foundational ruling on the scope of consumer-forum jurisdiction and procedural timelines; its written-statement holding was the subject of later conflict and was ultimately affirmed by the Constitution Bench in New India Assurance v. Hilli Multipurpose Cold Storage (2020).

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