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2022 Supreme(Del) 378

IN THE HIGH COURT OF DELHI AT NEW DELHI
Asha Menon, J.
SH. Harish Kathuria – Petitioner
Versus
State & Anr. – Respondent
Crl. M.C. 790 of 2020, Crl. M.A.3267 of 2020
Decided On : 24-05-2022

Advocate Appeared:
For the Petitioner:Mr. Neeraj Grover, Advocate.
For the Respondent:Mr. G.M. Farooqui, APP., Mr. Asutosh Lohia, Mr. Rohan Dewan & Mr. Varun Raghavan, Advocates.

An appeal can be filed against the orders passed under Section 27 of the Consumer Protection Act, 1986 on both facts and law. The prescribed procedure should be followed and the opportunity to raise grievances should be utilized.

Headnote:

Consumer Protection Act, 1986 - The Act provides for a statutory appeal against the orders passed under Section 27 of the Act. An appeal can be filed before the National Consumer Disputes Redressal Commission (NCDRC) within 30 days from the orders of the State Consumer Disputes Redressal Commission (SCDRC). No other appeal can be filed after approaching the NCDRC. The court held that the petitioner had the opportunity to raise their grievances before the NCDRC but chose not to follow the prescribed procedure.

Fact of the Case:

The respondent filed a complaint against the petitioner seeking refund of an amount deposited for purchase of a commercial premises. The State Consumer Disputes Redressal Commission (SCDRC) directed the petitioner to refund the amount along with interest and awarded additional compensation. An appeal was dismissed by the National Consumer Disputes Redressal Commission (NCDRC). The petitioner was then convicted under Section 27 of the Consumer Protection Act, 1986 and sentenced to imprisonment or payment of the entire amount. The petitioner filed a petition under Section 482 of the Cr.P.C. to quash the order.

Finding of the Court:

The petitioner argued that the petition was maintainable as the Act provided for a statutory appeal and the prescribed procedure should be followed. The respondent argued that the petition was not maintainable and the prescribed procedure was followed. The court examined the provisions of the Act and held that an appeal could be filed against the order of the SCDRC on both facts and law. The court also noted that the petitioner had not followed the prescribed procedure and had the opportunity to raise their grievances before the NCDRC. The court concluded that the petition was not maintainable and dismissed it.

Ratio Decidendi: The court held that an appeal could be filed against the order of the SCDRC on both facts and law. The petitioner had the opportunity to raise their grievances before the NCDRC but chose not to follow the prescribed procedure. Therefore, the petition was not maintainable.

Result: The petition was dismissed with costs to be paid to the respondent.

JUDGMENT :

1. This petition has been filed under Section 482 of the Cr.P.C. for quashing of the order dated 27th January, 2020 passed by the State Consumer Disputes Redressal Commission, (‘SCDRC’, for short), New Delhi in Execution Petition No. 39/2018.

2. The brief history of the case, may be usefully adverted to at this juncture. The respondent No. 2/Sh. Prashant Somani had filed a complaint in the year 2015 against M/s Harsha Buildcom Pvt. Ltd. (‘HBPL’, for short) and its Director, namely, the petitioner, seeking refund of an amount of Rs. 18,50,000/-. This amount had been deposited by the complainant/respondent No. 2 with the petitioner in March, 2012 for purchase of a commercial premises in a building owned by HBPL. In the complaint, HBPL was accused of unfair trade practice, as it had not given the possession of the property in time, while admitting that, within six months, it was the complainant/respondent No. 2 who had himself sought refund and cancellation of the allotment.

3. During the pendency of the complaint before the SCDRC, HBPL entered a belated appearance and the right to file the written statement was closed. The parties were referred to mediation, but the complainant/respondent No. 2 apparently did not participate in the proceedings. According to the petitioner, though an opportunity to file the written statement was sought, the SCDRC did not grant such an opportunity and allowed the complaint of the complainant/respondent No. 2, directing the petitioner and his Company to refund the entire amount of Rs. 18,50,000/- alongwith interest @ 12% per annum to the complainant/respondent No. 2, awarding a further sum of Rs. 2,00,000/- towards mental agony, pain and harassment. This order was passed on 23rd March, 2018. An appeal was preferred only in December, 2018 with a delay of around 100 days and, therefore, the National Consumer Disputes Redressal Commission (‘NCDRC’, for short) declined to condone the delay vide order dated 13th December, 2018, consequently, dismissing the appeal.

4. In the meantime, the complainant/respondent No. 2 filed an execution petition, on which, notices were issued to the petitioner and his Company on 20th July, 2018. The proceedings in these execution proceedings culminated in the impugned order dated 27th January, 2020, whereby the petitioner was convicted under Section 27 of the Consumer Protection Act, 1986 (hereinafter referred to as ‘the Act’) and was sentenced to imprisonment of one year or till the payment of the entire amount, whichever was earlier.

5. Mr. Asutosh Lohia, learned counsel for the complainant/respondent No. 2 has raised a preliminary objection that the present petition was not maintainable in view of the fact that the Act provided for a statutory appeal and an hierarchy for filing of the same. It also provided for a limitation period. Reliance has been placed on the judgment of Cicily Kallarackal v. Vehicle Factory, (2012) 8 SCC 524 in support of this contention.

6. It is further argued by learned counsel for the complainant/respondent No. 2 that the very fact that the petitioner had requested suspension of the sentence, to file an appeal under Section 27A(1)(b) of the Act, reflected awareness of the nature of the remedy available to the petitioner, despite which, the present petition had been filed. It is also submitted that the Act is a Code in itself and the prescribed procedure ought to be adhered to.

7. The judgments relied upon by the petitioner, namely, Baburam Prakash Chandra Maheshwari (supra) and M.P. State Agro Industries Development Corpn. Ltd. v. Jahan Khan, (2007) 10 SCC 88 are not applicable to the present matter as those relate to writ petitions filed under Article 226 of the Constitution of India, whereas, the present petition has been filed under Section 482 Cr.P.C.

8. In response to this preliminary objection, Mr. Neeraj Grover, learned counsel for the petitioner, submitted that in Kamlesh Aggarwal Vs. Narayan Singh Dabas, (2015) 11 SCC 661, the Supr

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