The Islamabad Consumer Protection Court can Adjudicate the Claim for General and Special Damages as well as Litigation Costs --- Islamabad High Court, Islamabad
Islamabad, 07-06-2024: The Islamabad High Court has passed a landmark judgment on the issue “Whether the Islamabad Consumer Court can award general and special damages and litigation costs under the Islamabad Consumer Protection Act, 1995”. The Honourable Division Bench of Islamabad High Court comprising of Mr. Justice Mohsin Akhter Kyani and Ms. Justice Saman Riffat Imtiaz decided [Criminal Appeal Nos. 422/2022 & 16 of 2023] and remanded the case to Consumer Court with direction to record the evidence of the complainant to determine the damages as well as cost of litigation.
According to facts of the case, Murtaza Talpur filed an appeal against the Islamabad Consumer Court's judgment dated 20-10-2022. The case involves the receipt of damaged and incomplete Mango Consignments from Leopards Courier Service, for which Talpur sought redress. The Consumer Court only awarded the consignment cost (Rs.2,800) and rejected claims for mental torture, agony, and litigation costs, referencing a previous case “Ashfaq Ahmed Khan Vs. PTCL”.
The facts of connected appeal [Criminal Appeal No. 16 of 2023]; Nuzhat Shaheen Awan filed an appeal against the order dated 07-12-2022 by the Islamabad Consumer Court. Awan’s complaint concerned a cancelled return flight by Serene Air, causing her significant distress and monetary loss. She sought Rs.500,000/- in damages. The Consumer Court dismissed the complaint, advising petitioner to file a civil suit for damages, as the Court could not award such damages under the Islamabad Consumer Protection Act.
Initially a Single Bench of the Court of the Islamabad High Court, disagreeing with the earlier view in “Ashfaq Ahmed Khan's Case”, referred the matter to a Division Bench to interpret Section 9(3) of the Islamabad Consumer Protection Act. The referral was made following orders dated 09-02-2023 and 28-08-2023, with the Division Bench to provide an authoritative ruling on the scope of Section 9(3). The Section 9(3) empowers the Consumer Court to order compensation for any damage or loss due to unfair trade practices. Compensation is limited to damage or loss caused by Unfair Trade Practices, not for other acts or omissions. The word "any" before "damage or loss" indicates a wide scope, as discussed in an Indian Supreme Court judgment. The broad interpretation of "any" includes all damages or loss suffered due to unfair trade practices.
The Court compared the provisions of Punjab Consumer Protection Act, 2005 with Islamabad Consumer Protection Act 1995 and observed that the Section 31 of the Punjab Consumer Protection Act, 2005, outlines the actions the Punjab Consumer Court can order, including compensation and actual costs. The Sections 4, 10, 13, and 15 of the Punjab Act define liability and damages parameters, treating consideration paid and damages as distinct remedies. The consideration paid and costs incurred are treated as separate remedies in specific circumstances under the Punjab Act. The Islamabad Act does not restrict damages recovery to consideration or cost but allows compensation for any damage or loss due to unfair trade practices. The compensation aims to restore the injured party to their former position, as defined in Black's Law Dictionary. The compensation should make the injured consumer whole, beyond just returning the consideration paid. The Lahore High Court has allowed general and special damages under the Punjab Act, including for mental distress.
The Islamabad Act allows the Consumer Court to award compensation for any damage or loss due to unfair trade practices. The Consumer Court must conduct a detailed inquiry before awarding compensation, including evidence gathering and issue framing. The section 9(3) of the Islamabad Act authorizes compensation for any damage or loss without additional restrictions. The requiring separate claims for different damages would lead to unnecessary hardship and multiple proceedings. The litigation costs are actual costs reimbursed to the successful party, as explained by the Supreme Court. Consequently the appeals are allowed, and the cases are remanded to the Consumer Court to record evidence and adjudicate on the claims for general and special damages, and litigation costs.
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