M/S. KRANTI ASSOCIATES PVT. LTD. & ANR. versus SH. MASOOD AHMED KHAN & OTHERS

Citation: [2010] 10 S.C.R. 1070 · Decided: 08-09-2010 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Appeal(s) allowed

Cited by 12 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
B 
{2010) 10 S.C.R. 1070 
MIS. KRANTI ASSOCIATES PVT. LTD. & ANR. 
V. 
SH. MASOOD AHMED KHAN & OTHERS 
(Civil Appeal No. 7472 of 2010) 
SEPTEMBER 08, 2010 
(G..S. SINGHVI AND ASOK KUMAR GANGULY, J.J.] 
Judgment/Order: Necessity of reasons - Held: Reasons 
are indispensablacomponent of a decision making process 
C - Even in administrative decisions, reasons should be 
recorded, if such decisions affect anyone prejudicially- Thus, 
a quasi-judicial authority must record reasons in support of 
its conclusions - National Commission has the trappings of 
a civil court and is a high-powered quasi-judicial forum for 
D deciding /is between the parties - A non-reasoned order 
passed by National Commission is thus liable to be set aside 
- Consumer Protection Act, 1986 - ss. 13, 22 - Penal Code, 
1860 - ss.193, 228 - Code of Criminal Procedure, 1973 -
s. 195 - Natural justice - Administrative law - Quasi-judicial 
E authority. 
Appeal: Separate appeals - Held: Each appeal should 
be heard independently - Natural justice - Right of hearing . . 
·Two separate appeals were filed by the builder and 
F the Corporation Bank challenging the orders of the 
National Consumer Disputes Redressal Commission 
(National Commission). The case of the appellants was 
that the National Commission dismissed their revision 
G 
H 
petitions by non-speaking orders. 
Allowing the appeals, the Court 
HELD: 1.1. The power and procedure applicable to 
the National Consumer Disputes Redressal Commission 
1070 
KRANTI ASSOCIATES PVT. LTD. v. MASOOD 
1071 
AHMED KHAN 
(National Commission) has been provided in Section 22 
A 
of the Consumer Protection Act. A perusal of Section 
22(1) would show that the Sections 12, 13, 14 of the CP 
Act with necessary modifications are applicable to the 
decision making process by the National Commission. 
Under Section 13 of the CP Act, the District Forum has s 
been vested, in certain matters, with the powers of the 
civil court while trying a suit. Section 13(4) of CP Act is 
applicable to the National Commission in view of Section 
22(1) thereof. Similarly, Sections 13(5), (6) and (7) will .also 
apply to the National Commission in view of Section c 
22(1). On a perusal of Sections 13(4), (5), (6) and (7) of the 
Consumer 'Protection Act, 1986, it is clear th.at the 
National Commission has been vested with some of the 
powers of a civil court. [Paras 11-12] [1078-G-H; 
1079-A-C] 
1.2. Under Section 13(5) of the Act, every proceeding 
of the National Commission will be deemed to be a 
judicial proceeding within the meaning of Sections 193 
and 228, IPC, and the said Commission shall be deemed 
D 
to be a civil court for the purpose of Section 195 and 
E 
Chapter XXVI of the Code of Criminal Procedure. These 
provisions make it clear that the said Commission ·has the 
trappings of a civil court and is a high-powered quasi-
judicial forum for deciding /is between the parties. [Paras 
13-14] [1079-H; 1080-A-B] 
F 
' 
2.1. As regards the necessity of giving reasons by a 
body or authority in support of its decision, the 
discussion in various judgments is summarized as 
follows: In India, the judicial trend has always been to 
record reasons, even in administrative decisions, if such 
G 
decisions affect anyone prejudicially. A quasi-judicial 
authority must also record reasons in support of its 
conclusions. Insistence on recording of reasons is meant 
to serve the wider principle of justice that justice must not 
H 
1072 
SUPREME COURT REPORTS 
[2010] 10 S.C.R. 
A only be done it must also appear to be done as well. 
Recording of reasons also operates as a valid restraint 
on any possible arbitrary exercise of judicial and quasi-
judicial or even administrative power. Reasons reassure 
that discretion has been exercised by the decision maker 
B on relevant grounds and by disregarding extraneous 
considerations. Reasons have virtually become as 
indispensable a component of a decision making process 
as observing principles of natural justice by judicial, 
quasi-judicial and even by administrative bodies. 
C Reasons facilitate the process of judicial review by 
superior courts. The ongoing judicial trend in all countries 
committed to rule of law and constitutional governance 
is in favour of reasoned decisions based on relevant 
facts. This is virtually the life blood of judicial decision 
0 making justifying the principle that reason is the soul of 
justice. Insistence on reason is a requirement for both 
judicial

Excerpt shown. Read the full judgment & AI analysis in Lexace.