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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Avinash G.Gharote, J.
Chaitanya – Appellant
Versus
Sou. Mayuri Milind Kabra – Respondent
Criminal Writ Petition No. 798 of 2021
Decided On : 04-04-2022

Advocates Appeared:
S.P.Deshpande, Advocate

The main legal point established in the judgment is that the actions of the liquidator cannot be made subject to scrutiny under the Consumer Protection Act.

Headnote:

Consumer Protection Act - Liquidator - Sec. 27, Sec. 12 - Sec. 89 (1) of the Multi-State Co-operative Societies Act, 2002 - Amended Sec. 72 of the Consumer Protection Act, 2019

Fact of the Case:

The petition challenges the order passed by the District Consumer Dispute Redressal Forum and the summons issued, contending that the addition of the liquidator as a party to the proceedings under Sec. 27 of the Consumer Protection Act was not permissible. The Society was not made a party to the proceedings under Sec. 12 of the C.P. Act, yet an order was passed against the Society. The liquidator was absolved, and the Consumer Forum had no reason to hold the Society responsible.

Finding of the Court:

The court found that the proceedings against the liquidator were not maintainable, as the actions of the liquidator cannot be made subject to scrutiny under the Consumer Protection Act. The court also referred to previous judgments to support its decision.

Issues: The issues revolved around the permissibility of adding the liquidator as a party to the proceedings under Sec. 27 of the Consumer Protection Act and the responsibility of the Society in the absence of being made a party to the proceedings under Sec. 12 of the C.P. Act.

Ratio Decidendi: The court held that the proceedings against the liquidator were not maintainable, as the actions of the liquidator cannot be made subject to scrutiny under the Consumer Protection Act.

Final Decision: The proceedings under Sec. 27 of the C.P. Act pending before the District Consumer Forum, Buldhana, against the petitioner and all subsequent actions therein are quashed and set aside. The amount deposited in the Court by the petitioner is to be refunded back to the petitioner.

JUDGMENT

1. Heard Mr. S. P. Deshpande, Advocate for the petitioner and Mr. S. S. Deshpande, Advocate for the respondent.

2. Rule. Rule made returnable forthwith. Heard finally by the consent of the learned counsel appearing for the parties.

3. The petition challenges the order dtd. 28/5/2019 (page 64 E) passed by the learned District Consumer Dispute Redressal Forum, Buldhana in Execution Case No.40 of 2017 and the summons issued on 30/8/2021 (page 69).

4. Mr. S. P. Deshpande, learned counsel for the petitioner submits, that the addition of the liquidator as a party to the proceedings under Sec. 27 of the Consumer Protection Act (hereinafter referred as "the C.P. Act"), was not permissible, so also the issuance of summons dtd. 30/8/2021 to the liquidator was also not permissible, considering that the original order of the Consumer Forum dtd. 23/1/2017 (page 52) in Consumer Complaint No.96 of 2016, itself absolved the liquidator which was indicated from point No.1 and para 4, where the same was discussed holding that proceedings cannot be continued against the liquidator. It is further submitted that when the Society was not a party to the proceedings under Sec. 12 of the C.P. Act, it was not permissible for the Consumer Forum to pass the judgment dtd. 23/1/2017. The further contention is that even presuming otherwise, the judgment of the learned Consumer Forum being against the Society, the proceedings under Sec. 27 of the C.P. Act, could not have been instituted against the liquidator. Reliance for the same is placed upon the order of the learned Division Bench in Writ Petition No.1611 of 2021 dtd. 14/3/2022 passed at the Principal Seat in Subhash Anandrao Chougule vs. Union of India and Ors.

5. Mr. S. S. Deshpnade, learned counsel for the respondent, vehemently opposes the petition and contends, that the petition itself is not maintainable, for which, reliance is placed upon P. K. Anna Patil Janta Sahakari Bank Ltd., Nandurbar and another Vs. State of Maharashtra and others, 2019 (1) Mh L.J. 240 (para 10). He further submits, that there is an alternate remedy available to the petitioner, on which ground also, the petition ought not to be entertained.

6. It is not in dispute that the Bhaichand Hirachand Raisoni Multi-State Co-operative Credit Society Ltd., Jalgaon, was put into liquidation by order dtd. 27/10/2015 and a liquidator was appointed to liquidate the affairs of the said Society. The proceedings under Sec. 12 of the C. P. Act, perusal thereof, were not filed against the Society, but against the liquidator. The liquidator appeared in this proceeding and opposed the complaint, contending that it was not maintainable against the liquidator, who under the statute was duty bound, to frame the priorities and make payment for the same after liquidating the assets of the Society. The Society also was not made party independently, considering which position, learned Consumer Forum by order dtd. 23/1/2017 itself found that the proceedings could not be continued against the liquidator, and therefore, it had no jurisdiction to continue the same. However, in spite of the fact, that the said Society, was not made an independent party, it surprisingly without directing the same to be done, proceeded to pass an order against the Society holding it responsible for payment of Rs.46,330.00 with interest at 8 % per annum as well as Rs.3,000.00 for harassment and mental agony and Rs.2,000.00 as costs. Surprisingly, this order of the learned Consumer Forum was put to execution by filing proceedings under Sec. 27 of the C.P. Act, against the liquidator (page 60), to whom the learned Consumer Forum issued summons on 30/8/2021, asking him to show cause, in pursuance to which, the liquidator was required to appear and obtain bail. What is material to note are two things (i) the Society, was not made an independent party to the proceedings under Sec. 12 of the C.P. Act and (ii) the liquidator was absolved holding that the proceedings against h

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