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[Landmark Judgement] Charan Singh V. Healing Touch Hospital (2000) 

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Landmark Judgment Law Insider (1)

Published on: 20 September 2023 at 11:48 IST

Court: Supreme Court of India

Citation: Charan Singh V. Healing Touch Hospital (2000) 

Honourable Supreme Court of India has held that the Consumer Forums are required to make an attempt to serve the ends of justice so that compensation is awarded. The purpose is not only serves the purpose of recompensing the consumer, but also to bring about a qualitative change in the attitude of the service provider.

It is held that while awarding compensation, a Consumer Forum has to take into account all relevant factors and assess compensation on the basis of accepted legal principles, on moderation. It is for the consumer forum to grant compensation to the extent it finds it reasonable, fair and proper in the facts and circumstances of a given case according to the established judicial standards where the claimant is able to establish his charge.

11. The Consumer Protection Act is one of the benevolent pieces of legislation intended to protect a large body of consumers from exploitation. The Act provides for an alternative system of consumer justice by summary trial. The authorities under the Act exercise quasi-judicial powers for redressal of consumer disputes and it is one of the postulates of such a body that it should arrive at a conclusion based on reason.

The necessity to provide reasons, howsoever, brief in support of its conclusion by such a forum, is too obvious to be reiterated and needs no emphasising. Obligation to give reasons not only introduces clarity but it also excludes, or at any rate minimises, the chances of arbitrariness and the higher forum can test the correctness of those reasons. Unfortunately we have not been able to find from the impugned order any reasons in support of the conclusion that the claim of the appellant is “unrealistic” or “exaggerated” or “excessive”. Loss of salary is not the sole factor which was required to be taken into consideration.

Drafted By Abhijit Mishra