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2022 Supreme(SC) 453

SUPREME COURT OF INDIA
M.R. Shah, B.V. Nagarathna, JJ.
Ibrat Faizan – Appellant
Versus
Omaxe Buildhome Private Limited – Respondent
Civil Appeal No. 3072 of 2022
Decided On : 13-05-2022

Advocates appeared:
For the Appellant(s) :Sunil Kumar Sharma, Advocate
For the Respondent(s):Sudarshan Rajan, Advocate

IMPORTANT POINTS
(1) Against order passed by National Commission in an appeal under Section 58 (1)(a)(iii) of Consumer Protection Act, 2019, writ petition before concerned High Court under Article 227 of Constitution of India would be maintainable.
(2) High Court has to exercise jurisdiction under Article 227 within parameters within which such jurisdiction is required to be exercised.


Headnote:

Consumer Protection Act, 2019 – Sections 58(1)(a)(iii) and 67 – Constitution of India – Article 227 – Appellate order – Remedy against – National Commission can be said to be a ‘Tribunal’ which is vested by Statute powers to determine conclusively rights of two or more contending parties with regard to any matter in controversy between them – It satisfies test of an authority vested with judicial powers of State and therefore may be regarded as a ‘Tribunal’ within meaning of Article 227 and/or 136 of Constitution of India – When remedy under Article 227 of Constitution of India before concerned High Court is provided, in that case, it would be in furtherance of right of access to justice of aggrieved party to approach concerned High Court at a lower cost, rather than a Special Leave to Appeal under Article 136 of Constitution – High Court has not committed any error in entertaining writ petition under Article 227 of Constitution of India against order passed by National Commission which has been passed in an appeal under Section 58(1)(a) (iii) of 2019 Act – However, while exercising powers under Article 227 of Constitution of India, High Court subjects itself to rigour of Article 227 of Constitution and High Court has to exercise jurisdiction under Article 227 within parameters within which such jurisdiction is required to be exercised – While granting any interim stay/relief in a writ petition under Article 227 of Constitution against an order passed by National Commission, same shall always be subject to rigour of powers to be exercised under Article 227 of Constitution of India. (Paras 12, 13, 14 and 15)

Facts of the case:

Short question which is posed for consideration of this Court is, “whether, against the order passed by National Commission in an appeal under Section 58 (1)(a)(iii) of 2019 Act, a writ petition before the concerned High Court under Article 227 of the Constitution of India would be maintainable?”

Findings of Court:

While exercising powers under Article 227 of Constitution of India, High Court subjects itself to rigour of Article 227 of Constitution and High Court has to exercise jurisdiction under Article 227 within parameters within which such jurisdiction is required to be exercised.

Result : Appeal dismissed.

Judgement Key Points

No, the Supreme Court did not hold that an order of the National Commission under Section 58(1)(a)(iii) of the Consumer Protection Act, 2019, will thus be heard by a Division Bench of the High Court. (!) (!) [1000756670001][1000756670011] (!) (!) (!) [1000756670013] (!) (!)

The Supreme Court held that the National Commission qualifies as a 'Tribunal' under Article 227 of the Constitution because it is statutorily vested with powers to conclusively determine rights between contending parties, satisfying the test of an authority exercising judicial powers of the State. [1000756670011] (!) (!) (!)

A writ petition under Article 227 before the concerned High Court is maintainable against such an order (where no statutory appeal to the Supreme Court lies under Section 67), as an accessible remedy promoting justice at lower cost compared to Article 136. (!) (!) [1000756670012][1000756670013] (!)

However, the judgment does not hold or direct that such writ petitions must be heard by a Division Bench. Article 227 jurisdiction must be exercised within its parameters and rigour, but the Court upheld the High Court's entertainment of the petition (by a Single Judge in this case) without mandating a Division Bench. [1000756670001][1000756670006][1000756670013] (!) (!)


JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned interim order passed by the High Court of Delhi at New Delhi dated 22.12.2021 passed in CM(M) No. 1196/2021, by which the learned Single Judge of the High Court has stayed order dated 9.12.2021 passed by the National Consumer Disputes Redressal Commission, New Delhi (for short, ‘National Commission’), while hearing a writ petition filed under Article 227 of the Constitution of India, in which the respondent herein challenged the judgment and order passed by the National Commission in First Appeal No. 250/2021, the original respondent before the High Court has preferred the present appeal.

2. Pursuant to the earlier order passed by this Court dated 21.03.2022 in the special leave petition, by a detailed order dated 31.03.2022, the learned Single Judge of the High Court has answered the question of jurisdiction and has held that against the order passed by the National Commission dated 9.12.2021 in First appeal No. 250/2021, a writ petition would be maintainable under Article 227 of the Constitution of India. By way of Interlocutory Application No. 58657/2022, the appellant herein has sought permission to amend the special leave petition, which is allowed.

3. Feeling aggrieved and dissatisfied with the order passed by the High Court holding that against the order passed by the National Commission passed in an appeal under Section 58(1)(a)(iii) of the Consumer Protection Act, 2019 (hereinafter referred to as the ‘2019 Act’), a writ petition under Article 227 of the Constitution of India would be maintainable, the original respondent before the High Court has preferred the present appeal before this Court.

4. The jurisdiction of the High Court under Article 227 of the Constitution of India, against the order passed by the National Commission, in an appeal under Section 58(1)(a)(iii) of the 2019 Act, is the moot question for consideration before this Court.

5. The facts leading to the present appeal in a nutshell are as under :

The appellant herein booked a flat in the project floated by the respondent herein. According to the appellant herein, despite the payment of sale consideration, the possession of the flat was not handed over and therefore the appellant filed a consumer complaint before the Delhi State Consumer Redressal Forum (for short, ‘State Commission’) on 10.08.2013 on the grounds of deficiency of service and unfair trade practice. By order dated 16.10.2020, the State Commission allowed the said complaint directing the respondent herein to handover possession of the flat booked by the appellant subject to their meeting the requirements. The State Commission also directed the respondent herein to pay to the complainant – appellant herein compensation for the delayed period in the form of simple interest at the rate of 9% for the period from the date of possession of the flat was due to be delivered till the delivery of the possession.

5.1 The appellant herein – original complainant filed an execution and contempt petition before the State Commission. Vide order dated 12.03.2021, the State Commission directed the decree holder – appellant herein to place on record the details of the bank accounts or the properties of the respondent herein which are to be attached for not implementing the judgment and order dated 16.10.2020 passed by the State Commission. Thereafter, the respondent-builder preferred an appeal before the National Commission. Vide order dated 30.03.2021, the National Commission granted stay of the State Commission’s order, subject to deposit of the entire cost of the flat along with 9% interest on the amount paid till date in the Registry of the State Commission or face the execution action by the State Commission.

Feeling aggrieved and dissatisfied with the order dated 30.03.2021 passed by the National Commission, the respondent herein preferred writ petition before the High Court by way of Writ CM(M) No. 374/2021 under Article 227 of


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