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Kamlesh Aggarwal v. Narain Singh Dabbas And Another

Supreme Court Of India
Feb 10, 2015
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Factual and Procedural Background

The appellant, a member of Navchetna Sahkari Awas Samiti Ltd. since 1962, sought allotment and registration of Plot No. 114, Village Khoda, Ghaziabad. When the Samiti cancelled her membership for alleged non-payment, she lodged Complaint No. 24/1998 before the District Consumer Disputes Redressal Forum, Ghaziabad (“District Forum”).

  • 17-10-2003: District Forum directed the Samiti to allot and register the plot in the appellant’s name.
  • Non-compliance led to execution proceedings where a third party, Gulab Singh, sought impleadment. On 13-09-2006 the District Forum declared its own decree “null and void.”
  • 07-09-2007: The State Consumer Disputes Redressal Commission, Lucknow (“State Commission”) set aside that order and ordered fresh execution proceedings. Gulab Singh’s revision was dismissed by the National Consumer Disputes Redressal Commission (“National Commission”) on 12-08-2008.
  • 29-05-2010: District Forum again allowed execution, giving alternate relief of another plot or monetary compensation.
  • 26-11-2010: On review, the District Forum convicted and sentenced Samiti officials to three months’ imprisonment and a Rs 3,000 fine under Section 27 of the Consumer Protection Act, 1986 (“the Act”).
  • 30-07-2013: On appeals (Nos. 2082 and 2083/2010), the State Commission set aside the conviction, citing failure to follow summary criminal procedure and lack of opportunity of hearing.
  • 08-01-2014: The appellant’s further appeals (F.A. Nos. 645 and 646/2013) were dismissed by the National Commission for want of jurisdiction; it held that a “second appeal” is barred by Section 27-A(2) of the Act.
  • The appellant approached the Supreme Court, invoking Article 136 of the Constitution of India.

Legal Issues Presented

  1. Whether a second appeal under Section 21 of the Consumer Protection Act is maintainable against an order of the State Commission passed under Section 27 or 27-A of the Act.
  2. Whether the State Commission erred in merely setting aside the District Forum’s conviction order without remanding the matter for fresh proceedings in accordance with the summary procedure prescribed by the Code of Criminal Procedure, 1973 (“CrPC”).
  3. What remedial directions, if any, are required to ensure enforcement of the original decree dated 17-10-2003 in favour of the appellant.

Arguments of the Parties

Appellant's Arguments

  • Dismissing the second appeal leaves the appellant remediless despite a final decree in her favour dating back to 2003.
  • The State Commission should have remanded the case to the District Forum instead of simply quashing the conviction, so that proper procedure could be followed and the decree executed.
  • Technical procedural defects should not render the decree unexecutable after many years of litigation.

Respondents' Arguments

  • The proper remedy for the appellant was a revision petition under Section 21(b) of the Act, not a second appeal.
  • The District Forum’s conviction order was invalid because it failed to adopt the summary trial procedure mandated by the CrPC before imposing punishment under Section 27 of the Act.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court concurred with the National Commission that Section 27-A(2) expressly bars a second appeal beyond the hierarchy District Forum → State Commission → National Commission → Supreme Court. Consequently, the National Commission correctly refused to entertain the appellant’s appeals.

However, the Court found fault with the State Commission’s failure to remand the matter for proper proceedings. Recognising that the appellant had pursued her remedy for 17 years without obtaining execution of the decree, the Court invoked its plenary powers under Article 142 of the Constitution to do complete justice:

  • It modified the State Commission’s order and remanded the execution case to the District Forum.
  • The District Forum was directed to initiate penal proceedings afresh under Section 27 of the Act, strictly following Section 262, Chapter XX and Section 251 CrPC (summary trial provisions).
  • The Court clarified that, in addition to penal proceedings, the appellant may execute the 2003 decree by resorting to Order 21 Rule 32 of the Code of Civil Procedure, 1908 (“CPC”), as permitted by Sections 13(4), (6) and (7) of the Act.
  • The applicability of CPC execution provisions was emphasised in the absence of any express or implied exclusion within the Act.

Holding and Implications

Appeals allowed to the limited extent of remanding the matter to the District Forum; National Commission’s finding on non-maintainability of second appeal affirmed; no costs.

Implications: The appellant regains a practical pathway to enforce the 2003 decree—either through renewed penal action under Section 27 or civil execution under Order 21 CPC. While the judgment does not establish new constitutional doctrine, it clarifies (a) the bar on second appeals under Section 27-A(2) of the Act and (b) the concurrent availability of CPC execution mechanisms to consumer fora.

Show all summary ...

V. Gopala Gowda, J.— Aggrieved by the dismissal of her First Appeals Nos. 645 and 646 of 2013 vide order dated 8-1-2014 by the National Consumer Disputes Redressal Commission, New Delhi, purported to have been filed under Section 21 of the Consumer Protection Act, 1986 (for short “the Act”), against the order dated 30-7-2013 passed by the State Consumer Disputes Redressal Commission, Lucknow in Appeals Nos. 2082 and 2083 of 2010, the appellant has filed these appeals, urging various relevant facts and legal contentions seeking for setting aside the said order.

2. The brief facts of the case are stated as under: the appellant filed Complaint No. 24 of 1998 before the District Consumer Disputes Redressal Forum, Ghaziabad (for short “the District Forum”) against Navchetna Sahkari Awas Samiti Ltd., the respondent in the original complaint, for not allotting and registering Plot No. 114, Village Khoda, Ghaziabad in her name, as the Awas Samiti, in a resolution passed by it, cancelled the membership of the appellant from Navchetna Sahkari Awas Samiti Ltd. in default of payment by her.

3. The District Forum vide its order dated 17-10-2003 after conducting an enquiry as provided under the provisions of the Act, accepted the complaint of the appellant and directed Navchetna Sahkari Awas Samiti Ltd. to allot the said plot in favour of the appellant and also to register the same in her favour within 3 months from the date of the order.

4. Since, there was non-compliance with the order dated 17-10-2003, the appellant filed execution petition before the District Forum to execute the order and requested it to punish the respondents under Sections 25 and 27 of the Act. In the said case, one Gulab Singh (the alleged subsequent allottee of the plot in question) filed an application in the above proceedings for impleadment before the District Forum as he was in the possession of the plot in question, which was allotted by the respondents and Civil Suit No. 1510 of 2005 filed by him was pending in the civil court. The District Forum vide its order dated 13-9-2006 held that the order dated 17-10-2003 is null and void. It was further held by the District Forum that the appellant should approach the civil court and only after the rejection of the suit of Gulab Singh in the civil court the execution proceedings will be heard by the District Forum and pass appropriate order, and rejected the application of impleadment of Gulab Singh.

5. Being aggrieved by the order dated 13-9-2006 of the District Forum, the appellant filed Appeal No. 2636 of 2006 before the State Consumer Disputes Redressal Commission, Uttar Pradesh, Lucknow (for short “the State Commission”). The State Commission has passed an order dated 7-9-2007 holding that it was not open for the District Forum to review the same matter on merits at the instance of the impleading applicant and declare its earlier decree as null and void. Thus, the State Commission allowed the appeal of the appellant and directed the District Forum to proceed afresh with the execution proceedings.

6. The said order dated 7-9-2007 of the State Commission was not challenged by the respondents, but Gulab Singh filed Revision Petition No. 4069 of 2007 before the National Consumer Disputes Redressal Commission, New Delhi (for short “the National Commission”) against the said order. The National Commission, having found either no illegality or material irregularity in the order dated 7-9-2007 passed by the State Commission, dismissed the revision petition of Gulab Singh on 12-8-2008 by observing that the State Commission was fully justified in allowing the appeal filed by the appellant and setting aside the order dated 13-9-2006 passed by the District Forum.

7. The appellant filed the application for execution of the order dated 17-10-2003 before the District Forum. On 29-5-2010, the District Forum allowed the execution petition directing for compliance with the order dated 17-10-2003. It further directed to provide alternate plot as a replacement for the plot in question to the appellant and if there is no plot available, in that circumstance, to pay the amount as compensation to the appellant at the current rate equivalent to the area of the plot in question.

8. The respondents filed review application before the District Forum in Execution Case No. 96 of 2010 for review of order dated 29-5-2010. The District Forum vide its order dated 26-11-2010 dismissed the review application and found the respondents guilty for non-compliance with the order dated 17-10-2003 passed in Complaint Case No. 24 of 1998 and ordered for three months' imprisonment of the respondents along with penalty amount of Rs 3000 payable by them under the provisions of Section 27 of the Act.

9. Being aggrieved by the abovesaid order dated 26-11-2010, the respondents filed Appeals Nos. 2082 and 2083 of 2010 before the State Commission which were allowed by its order dated 30-7-2013 by setting aside the order dated 26-11-2010 of the District Forum. The State Commission observed that the District Forum has not adopted the procedure of summary trial at the time of passing the order of conviction and sentence imposed upon the respondents as provided under the Criminal Procedure Code, 1973, for non-compliance with the order dated 17-10-2003. The State Commission also observed in its order that at no point of time the respondents were afforded an opportunity of being heard against the disobedience of the order dated 17-10-2003 of the District Forum, which is mandatory as per the provisions of sub-section (3) of Section 27 of the Act and it has to try them by following the summary procedure by the District Forum empowered as Judicial Magistrate of the First Class for the purpose of the Code of Criminal Procedure. Thus, the State Commission has allowed the appeal of the respondents and set aside the conviction and sentence order passed against them.

10. The appellant being aggrieved by the order dated 30-7-2013 filed First Appeals Nos. 645 and 646 of 2013 before the National Commission. The National Commission vide its order dated 8-1-2014 dismissed the appeals holding that there is no provision in the Act regarding the filing of second appeal under Sections 27 or 27-A of the Act; even under Section 21 of the Act, a petition filed against the order passed under Section 27-A of the Act could not be entertained by it as the appellant has no right and the National Commission has no jurisdiction to entertain such an appeal. Hence, these appeals are filed by the appellant as she is aggrieved by the order of both the State Commission and the National Commission.

11. Mr Digendra Sharma, the learned counsel appearing on behalf of the appellant contended that the National Commission should not have dismissed the appeals of the appellant as the same would render the appellant remediless for executing decree passed against the respondents who have till date not complied with the order dated 17-10-2003 passed by the District Forum and even the same has not been challenged by Navchetna Sahkari Awas Samiti Ltd. and therefore, the same has attained finality. It was further contended by him that by dismissing the second appeal of the appellant, the order dated 17-10-2003 would become ineffective and she has not got the fruits of the order. The order passed by the District Forum in favour of the appellant, which has attained finality cannot be made unexecutable on technical grounds. Even if the order of the District Forum in convicting and sentencing the respondents is found to be illegal, the State Commission ought to have remanded the matter to the District Forum with a direction to it to follow the procedure and pass appropriate order.

12. On the contrary, Mr Anukul Chandra Pradhan, the learned Senior Counsel appearing on behalf of the respondents contended that the appellant has the remedy of revision before the National Commission as available under Section 21(b) of the Act. It was further contended by him that the District Forum should have followed the provisions of the Criminal Procedure Code while dealing with the application filed by the appellant under Section 27 of the Act and passed the order and therefore he submits that the impugned order does not warrant interference by this Court.

13. We have heard both the learned counsel on behalf of the parties. In the facts and circumstances of the case, we are of the view that the State Commission should have remanded the matter to the District Forum after setting aside its order dated 26-11-2010 with a direction to proceed with the matter in accordance with the procedure contemplated under the Code of Criminal Procedure referred to supra for taking penal action against the respondents who are the officers concerned of Navchetna Sahkari Awas Samiti Ltd. for non-compliance with the order.

14. The National Commission has rightly declined to exercise the power under Section 21 of the Act to set aside the order dated 30-7-2013 of the State Commission as no second appeal is provided against the order of the State Commission in view of sub-section (2) of Section 27-A of the Act, which states as under:

“27-A. Appeal against order passed under Section 27.— (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an appeal under Section 27, both on facts and on law, shall lie from—
(a) the order made by the District Forum to the State Commission;
(b) the order made by the State Commission to the National Commission; and
(c) the order made by the National Commission to the Supreme Court
(2) Except as aforesaid, no appeal shall lie to any court from any order of a District Forum or a State Commission or the National Commission.”

From the reading of the above provisions of the Act, it is clear that against the order passed by the District Forum under Section 27-A of the Act, the appeal lies to the State Commission and against the order of the State Commission, the appeal lies to the National Commission and against the order of the National Commission, the appeal lies to the Supreme Court and sub-section (2) of the Act states that except as aforesaid, no appeal shall lie to any court from any order of a District Forum or a State Commission or the National Commission, as the case may be.

15. Therefore, we have to hold that the order passed by the National Commission in holding that appeals filed by the appellant are not maintainable, is legal and valid and does not call for interference by this Court. The petition filed under Article 136 of the Constitution of India seeking leave to file an appeal against the order of the National Commission is also not maintainable in law, however, we have to interfere with the order of the State Commission only to the extent in not remanding the case to the District Forum for passing an order in accordance with law, in not doing so, the right accrued in favour of the appellant will be lost and therefore, we have to pass appropriate order in this regard.

16. Having regard to the fact situation that the appellant, who is a consumer, has been litigating the matter before the District Forum, the State Commission and the National Commission for the last 17 years to get her legitimate right of getting the sale deed registered in respect of the allotted site made by Navchetna Sahkari Awas Samiti Ltd. in her favour who is its member since 1962, therefore, we deem it proper to exercise our power under Article 142 of the Constitution of India for the reason that the State Commission has erred in not remanding the case to the District Forum, after it has found fault with the order of the District Forum in convicting and sentencing the officers of Navchetna Sahkari Awas Samiti Ltd., who are the respondents herein, for not following the procedure as provided under the Criminal Procedure Code and for that reason we deem it just and proper to remand the case to the District Forum with a direction to the District Forum to follow the procedure under Section 262 read with Chapter XX, Section 251 of the Code of Criminal Procedure to initiate penal action against the respondents under Section 27 of the Act for non-compliance with the statutory provisions.

17. It is also needless to mention in this order that no remedy is available to the appellant against the order of the District Forum even under Section 24 of the Act for the reason that the order passed by the State Commission, which was not interfered with by the National Commission holding that second appeal is not maintainable against the order of the State Commission. Further, the order passed by the State Commission is under Section 27-A of the Act in the appeal against the order dated 30-7-2013 of the District Forum which under Section 27(2) of the Act convicted and sentenced the respondents in the execution proceedings for non-implementation of the order dated 17-10-2003 passed by the District Forum on the original complaint. Therefore, this Court in exercise of power of this Court under Article 142 of the Constitution of India, modifies the order of the State Commission to the extent of remanding the case to the District Forum to execute the decree and take penal action against the respondents by following the procedure under Section 262 read with Chapter XX and Section 251 of the Code of Criminal Procedure in accordance with law.

18. Further, it is needless to observe in this order that apart from initiating proceedings under Section 27 of the Act, the alternative right is also available to the appellant to execute the order of the District Forum by invoking the provisions of the Code of Civil Procedure, 1908 under Order 21 read with Rule 32 for seeking direction to the respondents to get sale deed in respect of Plot No. 114, Village Khoda, Ghaziabad executed by Navchetna Sahkari Awas Samiti Ltd. and register the same before the Sub-Registrar and put her in possession of the same in accordance with the aforesaid provisions. The execution of the decree in the aforesaid terms is permissible in law in view of the provisions of Sections 13(4), (6) and (7) of the Act, as the provisions of Order 21 read with Rule 32 of the Code of Civil Procedure are applicable to the District Forum to follow the procedure for execution of the order passed by it.

19. In view of the aforesaid provisions of the Act, the provisions of Order 21 read with Rule 32 of the Code of Civil Procedure, are applicable in the execution proceedings before the District Forum for executing the orders passed on the complaint of the appellant to get the fruits of the same in the absence of either express or implied exclusion of the Code of Civil Procedure to execute the order of the District Forum. The said provisions of the Code of Civil Procedure are applicable to the procedure for disposal of the complaints by the District Forum not only in relation to the matters enumerated under Sections 13(4), (6) and (7) of the Act but the other provisions of the Code of Civil Procedure viz. Order 21 read with Rule 32 are applicable for execution of the order of the District Forum and to give effect to the order passed by it on the complaint as the same will be in the nature of decree as defined under the Code of Civil Procedure as the procedure contemplated under the said order read with Rule 32 which is a substantial procedural right of the appellant and the same can be invoked by her as the decree-holder.

20. In addition to the above, the alternative remedy is also available to the appellant to take penal action against the officers concerned of Navchetna Sahkari Awas Samiti Ltd. under Section 27 of the Act and therefore, she is at liberty to avail the said remedy also if she wants to get the decree dated 17-10-2003 executed by the District Forum as the same has attained finality in her favour.

21. With the aforesaid observation and direction to the District Forum and liberty to the appellant, we allow these appeals to the abovesaid extent. No costs.