Back
2026 Supreme(Online)(SCDRC) 5289
STATE CONSUMER DISPUTES REDRESSAL COMMISSION CHANDIGARH
Raj Shekhar Attri, President, Preetinder Singh, Member
Ashok Kumar – Appellant
Versus
Emerging Valley Pvt. Ltd. – Respondent
EXECUTION APPLICATION NO. SC/4/EA/107/2021 IN SC/4/CC/156/2019
For the Appellants/Petitioners: Kavita Arora, Nargis Khan
For the Respondents: Sonpreet Singh Brar
Willful non-compliance with a Consumer Commission's order attracts penal consequences under Section 27 of the Consumer Protection Act, 1986, including imprisonment, especially when the Managing Director deliberately avoids liability despite multiple opportunities and mediation efforts.
Headnote:(A) Enforcement of Consumer Orders - Section 27 of CPA 1986 - Willful non-compliance - Failure to pay the decreetal amount despite multiple opportunities and a mediation settlement constitutes a criminal offense punishable by imprisonment and fine. (Para 21, 23)
(B) Liability of Managing Director - Corporate liability - The Managing Director responsible for the day-to-day affairs of the company is personally liable for the company's failure to comply with the Commission's orders. (Para 18)
(C) Sentencing - Contumacious defiance - Deliberate disregard for judicial orders and failure to provide a cogent explanation for non-compliance justifies substantive imprisonment to uphold the sanctity of the consumer redressal mechanism. (Order of Sentence)
Issues: Whether the accused Managing Director is liable for punishment under Section 27 of the Consumer Protection Act, 1986, for willful non-compliance of the decreetal order.
ORDER
STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
U.T., CHANDIGARH
Execution Application No.: 107 of 2021
Date of Institution: 01.06.2018
Date of Decision: 22.04.2026
Ashok Kumar S/o Bihari Lal Resident of Bl/250, Royal City, Jagraon, Punjab
…..Decree Holder/Complainant
Versus
1. Emerging Valley (P) Ltd. a unit of Emerging India Housing Corporation(P) Ltd Registered Office, B-57, Lower Ground South Extension, Part-II, New Delhi-49, through its Managing Director/Authorized Signatory. Email Id:- iinfo@emergingindia.in
2. Emerging Valley (P) Ltd. a unit of Emerging India Housing Corporation(P) Ltd through its authorized Signatory, Corp Office: SCO 46-47, Near Matka Chowk, Madhya Marg, Sector-9 D. Chandigarh 160009 Email Id:- iinfo@emergingindia.in
3. Managing Director, Gurpreet Singh Sidhu, C/o M/S Emerging Valley (P) Ltd, a unit of Emerging India Housing Corporation (P) Ltd, R/o House No. 208, sector-9 Chandigarh, 160009.
4. Additional Director Kamaljit Singh C/o M/S Emerging Valley (P) Ltd, a unit of Emerging India Housing Corporation (P) Ltd, R/o House No. 26 Hira Bagh, Chaura, University Patiala 147002(declared PP vide order dated 11.11.2025).
... Judgment Debtor/Opposite parties
BEFORE: JUSTICE RAJ SHEKHAR ATTRI, PRESIDENT
MR. PREETINDER SINGH, MEMBER
Argued by :-
Ms.Nargis Khan, Advocate proxy for Ms.Kavita Arora, Advocate, counsel for the Decree Holder
None for JDs No.1 and 2.
Sh.Sonpreet Singh Brar, Advocate, counsel for the judgment debtor/Gurpreet Singh Sidhu.
Sh.Gurpreet Singh Sidhu, Judgment Debtor No.3 (Produced from Model Jail, Burail Chandīgarh).
None for judgment debtor no.4-Kamaljit Singh (declared Proclaimed Person (PP) vide order dated 11.11.2025).
Factual scenario:-
Briefly stated, the facts of the case as mentioned in order dated 04.01.2021 (Exh. C-2) are that the complainant/Decree Holder-Sh.Ashok Kumar had booked a plot in the project of the judgment debtors on 12.12.2011, under the name and style Emerging Valley, situated on Landran Banur Road, Mohali, Punjab. He paid in total, an amount of Rs.18,06,750/- out of total consideration of Rs.26,35,000. However, neither possession of the said plot was delivered nor was the amount paid refunded by the opposite parties/judgment debtors. Consequently, he filed Consumer Complaint No.156 of 2019 before this Commission on 16.09.2019 against Emerging Valley (P) Ltd. and also against its Managing Director- Gurpreet Singh Sidhu and Additional Director-Kamaljit Singh. The said consumer complaint was partly accepted vide common order dated 04.01.2021 (Ex.C-2) as under :-
"... In CC No. 156 of 2019, the opposite parties, jointly and severally, are directed as under:-
(i.) To refund the amount of Rs. 18,06,750/- (which payment has been admitted to be received by the opposite parties in para no. 2 of their preliminary objections) to the complainant, alongwith interest @12% p.a., without deducting any TDS, from the respective dates of deposit onwards, within a period of 30 days, from the date of receipt of a certified copy of this order, failing which, thereafter, the said amount of Rs. 18,06,750/- shall carry 3% penal interest i.e. 15% p.a. (12% p.a. plus (+) 3% p.a.), from the date of passing of this order, till realization.
(ii.) To pay compensation for causing mental agony and physical harassment; deficiency in providing service and adoption of unfair trade practice and also cost of litigation, in lumpsum, to the tune of Rs. 50,000/- to the complainant within a period of 30 days from the date of receipt of a certified copy of this order, failing which, the said amount of Rs. 50,000/-, shall carry interest @9% p.a. from the date of passing of this order, till realization.
28. However, it is made clear that in case the complainants, in any of the complaint above, have availed housing loan from any Bank(s)/financial institution(s) for making payment towards price of their respective plots, it shall have the first charge of the amount payable, to the extent, the same is due to be paid by the
