IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.4559-4560 OF 2009 (Arising out of S.L.P. (C) Nos.24942-24943 of 2008)

M/s. Sigma Diagnostics Ltd.                 ...Appellant(s)

Versus

United India Insurance Co. Ltd. & Anr.     ...Respondent(s)

O  R  D  E  R

Leave granted.

Heard learned counsel for the parties. The Punjab State Consumer Disputes Redressal Commission [for short,  

“the State Commission”] partly allowed the complaint of the appellant and directed  the  respondents  to  pay  compensation  to  the  extent  of  50% of  the  price  of  the  

equipment, namely, Megalix Cat X-ray Tube along with customs duty of the newly  purchased equipment plus other amounts admissible under the policy, if any.  The  

State Commission also awarded 9% interest on the amount of compensation for the  period  commencing  16.8.2005  till  the  date  of  payment  and  costs  of  Rs.5,000/-.  

Against the order of the State Commission, both the parties preferred appeals.  By  the impugned order, the National Consumer Disputes Redressal Commission [for  

short “the National Commission”] dismissed the appeals by observing that it should  not entertain  the first appeals relating to quantum

...2/-

- 2 -  

of dispute any more and the complainant should be given liberty to approach the  civil court for enhancement of compensation in case parties fail to take steps for  

arbitration within six weeks. In  our  opinion,  the  view  taken  by  the  National  Commission  on  the  

maintainability of the appeals preferred by the parties against the order of the State  Commission is clearly erroneous. When the complaint was disposed of on merits,  

the National Commission was duty bound to decide the appeals on merits. Its failure  to do so has resulted in manifest injustice.

Accordingly,  the  appeals  are  allowed,  impugned  order  passed  by  the  National  commission is  set  aside and the matter is  remanded to it  to decide the  

appeals on merits in accordance with law.

......................J.             [B.N. AGRAWAL]

......................J.             [G.S. SINGHVI]

New Delhi, July 20, 2009.