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2025 Supreme(AP) 720

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
R. RAGHUNANDAN RAO, SUMATHI JAGADAM, JJ.
 
Shaik Allabakshu - Petitioner 
Versus
The State of Andhra Pradesh and Others – Respondents
Writ Petition No. 4585 of 2025
Decided On : 09-07-2025
 

Advocates Appeared:
For the Petitioner: G. Sri Harsha.
For the Respondents:GP., The Advocate General, Kotha Leela Ganesh Raghavendra.

Imprisonment under consumer protection laws requires clear findings of non-compliance, following procedural safeguards to protect personal liberty.

Headnote:(A) Consumer Protection Act, 1986 - Section 27 - Writ Petition concerning detention of Managing Director of real estate company for non-compliance of commission orders - Legal custody challenged on grounds of lack of procedural safeguards and findings of default - Power of imprisonment must be exercised with due process, respecting fundamental rights. (Paras 15-18)

Facts of the case:
The petitioner, Managing Director of a real estate company, was detained for non-compliance of orders requiring refunds to customers who paid for land plots never purchased by the company. The detention arose from his failure to appear before the District Consumer Disputes Redressal Commission.

Findings of Court:
The court found that there was no proper finding of default leading to the petitioner's detention and that the necessary procedures protecting personal liberty were not followed.

Issues: Whether the District Consumer Disputes Redressal Commission had the power to detain the petitioner without prior findings of non-compliance and due process.

Ratio Decidendi: The court ruled that personal liberty must not be jeopardized without adhering to procedural protections, emphasizing that imprisonment requires a clear finding of default, which was absent in this case.

Result: Writ Petition allowed; the petitioner was ordered to be released immediately.

Table of Content
1. background of real estate disputes (Para 1)
2. details of consumer cases against the petitioner (Para 2 , 3 , 4)
3. contention over legality of detention (Para 5)
4. court's findings on detention and compliance (Para 8 , 12 , 13 , 16 , 17 , 18)
5. examination of procedural compliance in consumer protection (Para 14 , 15 , 21 , 22 , 23)
6. release of the petitioner from detention (Para 19)
7. conclusion of the writ petition (Para 24)

Order :

R. Raghunandan Rao, J.

The petitioner herein is the Managing Director of a company named ‘Vijaya Saradhi Housing Private Limited’ which is involved in real estate business. The said company is said to have made a lay out of land in certain survey numbers of Vankayalapadu village of Pattipadu Mandal, Guntur District. These plots were offered for sale and various members of the public had entered into agreements for purchasing these plots and paid substantial amounts of money towards the purchase of these plots. However, neither the company nor the petitioner herein was completing the transactions by execution of necessary documents. The purchasers, contending that the company had never even purchased the land which is sought to be made into plots, had approached the District Consumer Disputes Redressal Commission, Guntur for compensation and refund of the amounts already paid to M/s. Vijaya Saradhi Housing Private Limited. The respondents in these consumer cases were the petitioner described as a director of M/s. Vijaya Saradhi Housing Private Limited and his wife who was also described as a director of Vijaya Saradhi Housing Private Limited.

2. These consumer cases, more specifically C.C.No.13 of 2019, C.C.No.20 of 2019 and C.C.No.32 of 2019 were allowed with directions to the opposite parties therein, to refund the sale consideration paid out by the complainant and to pay compensation and Costs. The said amounts being payable by within four weeks from the date of the order. As these orders were not complied, the consumers filed Penalty Petitions 4 to 6 of 2022 before the District Consumer Disputes Redressal Commission, Guntur.

3. It appears that initially some steps were taken for arriving at a compromise in the matter. However, the District Consumer Disputes Redressal Commission, Guntur by an order, dated 20.07.2022, had taken the petitioner herein into custody and forwarded the petitioner to the Station House Officer, Pattabhipuram Police Station, under Section 27 of the Consumer Protection Act, 1986 r/w Section 200 of Cr.P.C with a further remand warrant being addressed to the Superintendant, District Jail, Guntur for detaining the petitioner in the custody of the jail Superintendant till 03.08.2022. The custody order was passed by way of a common order in P.P.No.4 of 2022 in C.C.No.13 of 2019, P.P.No.5 of 2022 in C.C.No.20 of 2019 and P.P.No.6 of 2022 in C.C.No.32 of 2019. Thereafter, the other affected parties, who had already approached the District Consumer Disputes Redressal Commission, Guntur against the petitioner and his wife had filed separate P.Ps for detention of the petitioner. These P.Ps are P.P.Nos.17 to 42 of 2019, 45 to 65 of 2022 and P.P.Nos.72 to 84 of 2022.

4. The petitioner being aggrieved by his detention in the District Consumer Disputes Redressal Commission, Guntur from 20.07.2022 has approached this Court, by way of the present Writ Petition.

5. Sri G. Sri Harsha, the learned counsel appearing for the petitioner would contend that the District Consumer Disputes Redressal Commission, Guntur did not have any power of detaining the petitioner for such a prolonged period and in any event, the power that is said to have been exercised under Section 27 of the Consumer Protection Act, 1986 r/w Section 200 of Cr.P.C would have to be set aside on the ground that it has not followed the required procedure and has been passed without the conditions set out in Section 27 of the Consumer Protection Act, 1986 being complied.

6. After notice, the respondents 4 to 6 had

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