High Court of Karnataka
THE HONOURABLE MR. JUSTICE N. KUMAR
M/s. Shanthiniketan Housing Foundation & Others
Versus
Brig (Retd) J.N. Devaiah & Others
Writ Petition Nos. 700 of 2008 (GM-CON) C/w Writ Petition Nos.14927 of 2006, 16308 of 2006, 17104 of 2006, 17106 of 2006, 17513 of 2006, 17725 of 2006, 17767 of 2006, 18030 of 2006, 18212 of 2006, Writ Petition Nos. 1008 of 2007, 1010 of 2007, 1011 of 2007, 1077 of 2007, 1078 of 2007, 2723 of 2007,2978 of 2007, 3371 of 2007, Writ Petition Nos. 6857 of 2008, 8118 of 2008, 8395 of 2008 8453 of 2008, 8504 of 2008, 10572 of 2008, 10573 of 2008
Decided on : 19-06-2009
CONSUMER PROTECTION ACT, 1986 - Sections 25 & 27: [N.Kumar,J] Applications filed under - Circulars issued by the Karnataka State Consumer Redressal forum - Procedure to be followed in dealing with Execution Petitions - Held, The State Commission has sent a circular to all the District Commissions making it clear that while dealing with an execution petition under the act for non-compliance of the order passed by the District Forum all that they have to do is to follow the principles of natural justice as a procedure is to follow the principles of natural justice as a procedure before orders are passed under Section 27 of the Act. Further, it categorically states the procedure prescribed under the Criminal Procedure is not to be strictly followed. Therefore, none of the district Forums as well as the State Forum have followed the procedure prescribed under the Code of Criminal Procedure as contemplated under Section 27(2) and (3) of the Act while passing the impugned orders. In view of the circulars issued by the State Commission making it clear that, it is not necessary to follow the procedure prescribed under the code in trial of offences under the Act, all the impugned order passed in these Writ Petitions are passed without following the procedure prescribed under the Criminal Procedure Code, 1973. In the circumstances, without going into the merits of the impugned orders, it is necessary to quash all these orders as it is contrary to the procedure prescribed under Sections 27(2) and (3) of the Act. Accordingly, all these impugned orders are quashed. All the cases are remitted back to the respective Forums and the Commission, with a direction to try the offence in accordance with the procedure prescribed under the Code of Criminal Procedure read with sub-Sections (2) and (3) of section 27 of the Act, on merits.
CONSUMER PROTECTION ACT, 1986 - Section 27(2) & (3): [N. Kumar, J] Constitutional Validity of - Procedure followed by the District and State consumer forum in issuing Arrest Warrant against the petitioner - Whether procedure under sub-Sections (2) and (3) of Section 27 would constitute procedure established by law as contemplated under Article 21 of the Constitution - Held, The interpretation of the word ’trial’ will have to promote the purpose of Section 27 of the Act. Therefore, the word trial used in Section 27 of the Act, Therefore, the word trial used in Section 27 of the Act, is wide enough to cover every kind of inquiry and trial and the word ’trial’ in that Section has not been used in any limited or restricted sense. The power to be exercised by the Forum and the Commission is that of the power of Judicial Magistrate of I Class under the Code. Therefore, it cannot be said the personal liberty of a person is sought to be taken away without following the procedure established by law. As the proviso to Section 27 did not provide any procedure before a sentence of imprisonment could be imposed it was struck down as unconstitutional. After striking down the said offending proviso High Court made it clear that the offences under the Act could be dealt with, tried and concluded in accordance with the provisions of the Code of Criminal Procedure. It is in this background sub-Section (2) and (3) of Section 27 was introduced by way of amendment by the Parliament conferring on the Forum the powers of a Judicial Magistrate of I Class under the Code to try the offences under the Act. Therefore, it cannot be said that no procedure is prescribed and the procedure prescribed is not a procedure established by law.
In all these Writ Petitions the petitioners have challenged the constitutional validity of Section 27(2) and (3) of the Consumer Protection Act, 1986 (hereinafter for short referred to as ‘the Act’) as well as the procedure followed by the District and State Consumer Forum in issuing arrest warrants against them. Therefore, all these Writ Petitions are taken up for consideration together and disposed of by this common order. However, for proper appreciation of the rival contentions, the facts pleaded in W.P.No. 700/2008 and the statement of objections filed in W.P.No. 18465/2006 by the Union of India which was adopted by them as the statement of objections in all the Writ Petitions is set out as under.
2. The petitioner is a registered partnership firm. It is in the business of land development and construction. The petitioner entered into an agreement with the land owners for development of land bearing Sy. No. 4848 and 2878 at 6th Main, V.V. Puram, Devaraja Mohalla, Mysore, on 29.7.2002. The petitioner also entered into an agreement with the respondents on 22.4.2004 for assigning, developing and completion of Hi-land park apartments at Mysore. According to the petitioner the construction was completed in accordance with the agreement and possession was also handed over to the respondents. Thereafter, the petitioner called upon the respondents to co-operate with him in order to execute a sale deed. The respondents failed to pay the balance amount of Rs.43,316/- and register the sake deed.
3. The respondents filed Complaint No.12/2006 before the District Consumer Forum, Mysore, complaining of deficiency of service and the same came to be dismissed by an order dated 17.5.2006. Respondents filed Appeal No.1504/2006 before the State Commission which was disposed of by an order dated 26.3.2007 whereby the respondents were directed to pay Rs.43,000/- and the petitioner was directed to execute the absolute sale deed within two months after the receipt of the aforesaid amount. Respondents paid the amount accordingly. Thereafter, the petitioner by their letter dated 7.7.2007 intimated the respondents that on 13.7.2007 the sale deed would be executed. At the request of the respondents a draft copy of the sale deed was also sent. Lot of correspondences ensued between the parties. In fact the petitioner also made an offer to pay back the amount to the respondents if they are not interested in taking the apartment. The case of the petitioner is that, he has already executed sale deeds in respect of the majority of the purchasers. When things stood thus the respondents filed an Execution Application for a direction to provide the things mentioned in the said application, to pay damages and for detention of the respondents until he has complied with the orders of the Commissioner and for imposition of fine. Notice was ordered on the said Execution Petition. After service of notice, the petitioner entered appearance through an advocate and the case was posted for objections on 1.1.2008. On 1.1.2008, the following order came to be passed:-
“Sri PDM filed power for J.Dr. On 20.12.2007 the J.Dr. counsel was directed to comply the order or to file objection but nothing has been done. D.Hr. submits for issue of coercive steps. If P.F. paid issue NBW against J.Dr. as it appears that the J.Dr. unless a coercive step is taken is not inclined to comply the order, through P.I., Vontikoppal Police Station. Returnable by 17.01.2008”.
4. Aggrieved by the said order, the petitioner preferred an appeal under Section 27-A of the Act before the Karnataka State Consumer Disputes Redressal Commission. The said appeal came to be dismissed on 9.1.2008. Therefore, the petitioner has preferred this Writ Petition challenging the constitutional validity of Section 27(2) and (3) of the consumer protection Act, 1986 as amended by Act 62/2002 and for setting aside the impugned orders.
5. The Union of India has filed its statement of objections. It is contend
State of Karnataka Vs. Vishwabarathi House Building Co Op. Society And Others
Ratilal Bhanji Mithani Vs State of Maharashtra And Others AIR 1979 SC 94
V.C. Shukla Vs State Through CBI AIR 1980 SC 962
State of Bihar vs. Ram Naresh Pandey and another AIR 1957 SC 389
Omprakash Shivprakash vs K.I. Kuriakose and others (1999) 8 SCC 633
Bipinchandra Parshottamdas Patel (Vakil) vs State of Gujarat (2003) 4 SCC 642
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.