Kanwar Sat Pal Singh Vs State Consumer Disputes Redressal Commission, U.T. Chandigarh and others

High Court Of Punjab And Haryana At Chandigarh 19 Jan 2012 Letters Patent Appeal No. 102 of 2012 (O and M) (2012) 166 PLR 18
Bench: Division Bench
Result Published
Acts Referenced

Judgement Snapshot

Case Number

Letters Patent Appeal No. 102 of 2012 (O and M)

Hon'ble Bench

Tej Pratap Singh Mann, J; Satish Kumar Mittal, J

Final Decision

Dismissed

Acts Referred

Consumer Protection Act, 1986 — Section 25, 27

Judgement Text

Translate:

Satish Kumar Mittal, J.@mdashThis Letters Patent Appeal has been directed against the order dated 23.11.2011, passed by the learned Single

Judge, whereby the writ petition (CWP No. 16825 of 2011) filed by Kanwar Sat Pal Singh (appellant herein) challenging the order dated

28.7.2011 (Annexure P-6) passed by the State Consumer Disputes Redressal Commission, U.T., Chandigarh hereinafter referred to as ''the State

Commission'') upholding the order dated 12.7.2010 (Annexure P-4) passed by the District Consumer Disputes Redressal Forum-I, UT

Chandigarh (hereinafter referred to as ''the District Forum''), vide which appellant Kanwar Sat Pal Singh and Ashok Kumar, both Directors of M/s

Shivcon Infrastructures Enterprises Ltd., Chandigarh (hereinafter referred to as ''the company''), were sentenced to undergo imprisonment for two

years and to pay a fine of Rs. 10,000/- each u/s 27 of the Consumer Protection Act, 1986 (hereinafter referred to as ''the Act''), has been

dismissed. We have heard learned counsel for the appellant and gone through the order passed by the learned Single Judge as well as the orders,

passed by the District Forum and the State Commission.

2. In the present case, on a complaint filed by Ashutosh Goyal alias Ashu Goyal (respondent No. 3 herein) against the company and its four

Directors, including the appellant, vide order dated 1.1.2009 (Annexure P-2), the appellant as well as three other Directors of the company were

directed to refund to him a sum of Rs. 6.50 lacs along with interest @ 9% per annum from the date of respective deposits till realisation, besides

compensation of Rs. 10,000/- for mental agony and harassment suffered by him at the hands of those Directors, including the appellant, and for

adopting an unfair trade practice by them. All those Directors, including the appellant, were ordered to comply with the said order within 30 days

from the receipt of copy of the order, failing which they were to pay the amount along with penal interest @ 12% per annum from the date of filing

of the complaint i.e. 12.6.2008, till realisation.

3. Undisputedly, the aforesaid order dated 1.1.2009 (Annexure P-2) has become final. When the said order was not complied with, respondent

No. 3 filed application u/s 27 of the Act for punishing the appellant and other Directors of the company for not complying with the above order.

4. It is pertinent to mention here that when the proceedings u/s 27 of the Act were pending before the District Forum, the appellant appeared

through his counsel and sought time to make the payment, upon which the case was adjourned to 21.5.2010. On that day, payment was not made.

Again, on request of the appellant, the case was adjourned to 29.6.2010, on which date, neither the appellant nor any body on his behalf

appeared. Thereafter, the case was adjourned to 5.7.2010, 9.7.2010 and 12.7.2010, but no payment was made by the appellant to respondent

No. 3.

5. Thus, when after availing sufficient opportunities, the appellant failed to comply with the order of the District Consumer Forum, vide order dated

12.7.2010 (Annexure P-4), the appellant was ordered to be sentenced, as indicated above, u/s 27 of the Act.

6. The said order was upheld in appeal by the State Commission vide order dated 28.7.2011 (Annexure P-6), which was also challenged by the

appellant by filing Civil Writ Petition No. 16825 of 2011. Vide order dated 23.11.2011, the writ petition has also been dismissed by the learned

Single Judge, which has been challenged in this Letters Patent Appeal.

7. During the course of hearing, learned counsel for the appellant argued that against the initial order dated 1.1.2009 (Annexure P-2), respondent

No. 3 was having the remedy of execution u/s 25 of the Act, and without availing the said remedy, he has filed the application u/s 27 of the Act for

imposing penalty on the appellant and other Directors of the company, which according to the learned counsel was an absolute abuse of the

process of additional remedy. Learned counsel further argued that the appellant is one of the Directors of the company and in the application u/s

27 of the Act, no averment pertaining to his role or handling the affairs of the company has been made, therefore, without those specific averments,

the District Forum has committed grave illegality while passing the order of sentence against the appellant. Learned counsel submits that the order

of sentence could have been passed only against the person, who at the time of the commission of the offence was in-charge of the company and

responsible to it for the conduct of its business.

8. We do not find any force in the submissions made by learned counsel for the appellant.

9. Undisputedly, in this case, on a complaint filed by respondent No. 3 against the company as well as its four Directors, including the appellant,

vide order dated 1.1.2009 passed by the District Forum, all the Directors, including the appellant, were directed to refund to respondent No. 3 a

sum of Rs. 6.50 lacs along with interest @ 9% per annum from the date of respective deposits till realisation, along with a compensation of Rs

10,000/-. Admittedly, the said order has become final. It has not been disputed by the appellant that in spite of having sufficient time, he did not

make the payment to respondent No. 3, in compliance with the aforesaid order dated 1.1.2009. When the said order was not complied with

respondent No. 3 filed application u/s 27 of the Act, in which the appellant appeared and sought time to make payment, but in spite of having

sufficient opportunities, he did not make any payment. Ultimately, the order of sentence was passed by the District Form on 12.7.2010, which was

upheld in appeal by the State Commissioner as well as by this Court in the writ petition, filed by the appellant.

10. The remedies under Sections 25 and 27 of the Act are independent remedies. It is open to a consumer to proceed either u/s 25 or u/s 27 of

the Act, or simultaneously under both the provisions. If the order of making payment passed by the District Forum, or the State Commission or the

National Commission, is not complied with, the District Forum, the State Commission or the National Commission, as the case may be, is not

debarred from proceeding u/s 25 or Section 27 of the Act or simultaneously under both the provisions. Section 27 of the Act clearly provides that

where a trader or a person against whom a complaint is made fails to comply with any order made by the District Forum, the State Commission or

the National Commission, as the case may be, such trader or person shall be punishable with imprisonment for a term prescribed. This provision

does not provide that for non-compliance of the order made by the District Forum, penalty can be imposed only after availing the remedy of

execution by the consumer, as provided u/s 25 of the Act. Therefore, there is no force in the contention of learned counsel for the appellant that by

entertaining the application u/s 27 of the Act filed by respondent No. 3, without availing the remedy u/s 25 of the Act, the District Forum has

committed an illegality.

11. As far as the second contention is concerned, again there is no requirement that for awarding sentence u/s 27 of the Act, it has to be proved

that the Director of a company, who is to be punished, has vicarious liability of the company. The order of sentence under this provision can be

passed against any person, against whom on a complaint filed by a consumer, an order is made by the District Forum or the State Commission or

the National Commission. So, the only requirement is that if an order is passed against a person, and such person has not complied with that order,

then he can be punished u/s 27 of the Act. In the instant case, the order was also against the appellant and he was given sufficient opportunities to

comply with the said order passed by the District Forum, but he had failed to comply with the same. Before the learned Single Judge also, an

opportunity was given to the appellant to comply with the initial order dated 1.1.2009 passed by the District Forum, but he was not inclined to

comply with the said order. Even in this appeal, an offer was given to learned counsel for the appellant that if the appellant complies with the

aforesaid initial order within two weeks, the court can consider his prayer for setting aside the order of sentence, but the learned counsel, after

having instructions, does not accept the said offer, saying that if the appellant pays the said amount, then it will amount to acknowledgment, which

will effect many other complaints pending against him.

In view of the above, we do not find any illegality in the order passed by the learned Single Judge.

No merit.

Dismissed.