SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2022 Supreme(Del) 1921

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Mohan Sakpal & Anr. - Appellants
Versus
Abhay Goyal & Anr. - Respondents
CM(M) 925 of 2022 & CM Appl. 39441 of 2022, CM Appl. 39442 of 2022
Decided On : 07-09-2022

Advocates appeared:
Mr. Arvind Nayar, Sr. Adv. withMr. Neeraj Kumar Verma, Mr. Nikhil Jain, Ms. Simran Jeet ad Mr. Akshay Joshi, Advs., for the Petitioners

The power under Article 227 is intended to be used sparingly and only in appropriate cases, for the purpose of keeping the subordinate courts and tribunals within the bounds of their authority and not for correcting mere errors.

Headnote:

Article 227 - Order of the National Consumer Disputes Redressal Commission - 1986 Act Section 23, Section 27 - The court discussed the maintainability of a writ petition under Article 227 against an order passed by the National Consumer Disputes Redressal Commission (NCDRC) in appellate or revisional jurisdiction. It also highlighted the limitations of the court's jurisdiction under Article 227 and the scope and ambit of jurisdiction of Article 227 of the Constitution. The court emphasized that the power under Article 227 is intended to be used sparingly and only in appropriate cases, for the purpose of keeping the subordinate courts and tribunals within the bounds of their authority and not for correcting mere errors. The judgment also clarified that the court, while exercising Article 227 jurisdiction, is proscribed from entering into the correctness of the orders passed by the Court or forum below, except where the order suffers from perversity or is manifestly unsustainable in law, or where interference is justified ex debito justitiae.

Fact of the Case:

The petition under Article 227 was filed against an order passed by the National Consumer Disputes Redressal Commission (NCDRC) directing the directors of a company to appear in person for execution proceedings. The petitioner argued that there was no warrant or justification for the NCDRC to issue such a direction.

Finding of the Court:

The court found that the impugned order was innocuous in nature and did not indicate any intention to take personal proceedings against the directors. It emphasized the limitations of the court's jurisdiction under Article 227 and clarified that the power under Article 227 is intended to be used sparingly and only in appropriate cases.

Issues: The main issue was the maintainability of a writ petition under Article 227 against an order passed by the NCDRC in appellate or revisional jurisdiction, and the scope and limitations of the court's jurisdiction under Article 227.

Ratio Decidendi: The court emphasized that the power under Article 227 is intended to be used sparingly and only in appropriate cases, for the purpose of keeping the subordinate courts and tribunals within the bounds of their authority and not for correcting mere errors. It also clarified that the court, while exercising Article 227 jurisdiction, is proscribed from entering into the correctness of the orders passed by the Court or forum below, except where the order suffers from perversity or is manifestly unsustainable in law, or where interference is justified ex debito justitiae.

Final Decision: The petition was disposed of with the court expressing no opinion on the directors seeking exemption from personal appearance before the NCDRC, clarifying that the order would not disentitle the petitioners from claiming exemption from personal appearance, if the law permits them to do so.

JUDGMENT

1. This petition, under Article 227 of the Constitution of India, is directed against an order dated 21st July 2022, passed by the learned National Consumer Disputes Redressal Commission 'the learned NCDRC') in Execution Application 39/2018 in Complaint Case 294/2015 (Abhay Goyal v. M/s A A Estate Pvt. Ltd.).

2. The impugned order reads as under:

      'IA 6586 of 2022 (directions) Issue notice for 08.09.2022. All the Directors of the Judgment Debtor Company shall be present in person on the next date of hearing in view of the fact that despite the final order and despite taking adjournments for making the payment, no payment has so far been made. Meanwhile, report of the Collector shall also be called for. Copy of the application supplied to the learned Counsel for the Judgment Debtor.'

      3. Mr. Arvind Nayar, learned Senior Counsel for the petitioners, submits that there was no warrant or justification for the learned NCDRC to direct the petitioners, who are the directors of M/s A A Estate Pvt. Ltd, (the respondents before the learned NCDRC) to appear in person.

      4. He submits that attachment proceedings, toward execution of order dated 5th January 2018 passed by the learned NCDRC, are in process. At this point, he submits, therefore, the learned NCDRC has exceeded its jurisdiction in summoning the petitioners without due justification there for. Mr. Nayar has placed reliance, to support his submissions, on two recent orders passed by a Coordinate Bench of this Court in Sylvanus Properties Ltd. v. Paresh Pratap Rai Mehta MANU/DE/2585/2021 and Sandeep Jain v. Akash Gupta Order dated 4th October 2021 in CM(M) 676/2021 as well as an earlier judgment, by A.K. Sikri, J.(as he then was) sitting as a single Judge of this Court in (Dr.) V.P. Mainra v. Dawsons Leasing Ltd. 2004 (77) DRJ 727

      Analysis

      5. In Omaxe Buildhome Pvt. Ltd. v. Ibrat Faizan(2022) 4 HCC (Del) 492, the question that fell for consideration before this Court was whether a writ petition under Article 227 would lie against an order passed by the learned NCDRC in appellate or revisional jurisdiction.

      6. Section 23 of the 1986 Act provides for appeal only against orders passed by the learned NCDRC in exercise of original jurisdiction. This Court, therefore, held that no appeal to the Supreme Court, or to any other forum being available against an order passed by the learned NCDRC in appellate or revisional jurisdiction, a writ petition under Article 227 would be maintainable against such order.

      7. The issue was carried to the Supreme Court, which, vide its judgment in Ibrat Faizan v. Omaxe Buildhome Pvt. Ltd. 2022 SCC Online SC 620, upheld the decision of this Court, even while entering the following note of caution in paras 27 and 28 of the report:

          '27. In view of the above, in the present case, the High Court has not committed any error in entertaining the writ petition under Article 227 of the Constitution of India against the order passed by the National Commission which has been passed in an appeal under Section 58(1)(a)(iii) of the 2019 Act. We are in complete agreement with the view taken by the High Court. However, at the same time, it goes without saying that while exercising the powers under Article 227 of the Constitution of India, the High Court subjects itself to the rigour of Article 227 of the Constitution and the High Court has to exercise the jurisdiction under Article 227 within the parameters within which such jurisdiction is required to be exercised.

          28. The scope and ambit of jurisdiction of Article 227 of the Constitution has been explained by this Court in the case of Estralla Rubber v. Dass Estate (P) Ltd (2001) 8 SCC 97., which has been consistently followed by this Court (see the recent decision of this Court in the case of Garment Craft v. Prakash Chand Goel 2022 SCC OnLine SC 29). Therefore, while exercising the powers under Article 227 of the Constitution, the High Court has to act within the parameters to exercise the powers under Article 227 of the C

                                  Click Here to Read the rest of this document
                                  1
                                  2
                                  3
                                  4
                                  5
                                  6
                                  7
                                  8
                                  9
                                  10
                                  11
                                  SupremeToday Portrait Ad
                                  supreme today icon
                                  logo-black

                                  An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

                                  Please visit our Training & Support
                                  Center or Contact Us for assistance

                                  qr

                                  Scan Me!

                                  India’s Legal research and Law Firm App, Download now!

                                  For Daily Legal Updates, Join us on :

                                  whatsapp-icon Back to top