'PSUs spending more money in contesting cases'

PTI New Delhi | Updated on October 29, 2012 Published on October 29, 2012

Public sector undertakings (PSUs) are behaving “penny-wise, pound-foolish” and spending more money in fighting cases than they might have to pay to the claimants, the apex consumer forum has said.

The National Consumer Disputes Redressal Commission made the observation while pulling up Haryana Urban Development Authority (HUDA) for “gross negligence, deliberate inaction and lack of bonafides” in delaying by 204 days filing of a plea against a state consumer commission’s order.

The NCDRC also imposed a fine of Rs 50,000 on HUDA while blaming the legal staff of the PSUs for not examining cases properly and forcing litigants to approach courts, resulting in a rise in frivolous litigation.

“It is a well-known fact that courts across the country are saddled with large number of cases. PSUs’ indulgences further burden them. PSUs spend more money on contesting cases than the amount they might have to pay to the claimant. In addition thereto, precious time, efforts and other resources go down the drain in vain.

“PSUs are possibly an apt example of being penny-wise, pound-foolish. Rise in frivolous litigation is also due to the fact that PSUs though having large number of legal personnel under their employment, do not examine the cases properly and force poor litigants to approach the court,” it said.

The HUDA had challenged an order of Haryana State Consumer Commission directing it to pay 12 percent per annum interest on the amount paid by an allottee for a plot of land allotted to her in 1995 but possession of which was not given to her.

The apex consumer body came down heavily on HUDA for its inordinate delay in filing its revision petition saying “no sufficient grounds are made out for condoning the long delay of 204 days in filing the present revision petition.”

”...present revision petition being barred by limitation is hereby dismissed with cost of Rs 50,000,” the bench headed by Justice V B Gupta said adding that the amount be deposited in the ‘Consumer Legal Aid Account’

Published on October 29, 2012
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