H. K. SINGLA versus AVTAR SINGH SAINI & ORS.

Citation: [2018] 14 S.C.R. 1223 · Decided: 14-12-2018 · Supreme Court of India · Bench: UDAY UMESH LALIT · Disposal: Disposed off

Judgment (excerpt)

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1223
H. K. SINGLA
v.
AVTAR SINGH SAINI & ORS.
(Civil Appeal No. 11969 of 2018)
DECEMBER 14, 2018
[UDAY UMESH LALIT AND R. SUBHASH REDDY, JJ.]
Consumer Protection Act, 1986: s. 27 – Penalties – On facts,
allegation of the complainant that he had deposited the money with
the Employees Co-operative USE Thrift and Credit Society and
Society did not repay the amount with interest, as assured –
Application u/s. 27 by the complainant against the appellant-
Secretary of the society – District Forum passed an order of
imprisonment against the appellant – In appeal, the State
Commission passed an interim order staying the operation of the
order of the District Forum, subject to the appellant depositing the
entire amount – Said order upheld by the National Commission –
On appeal, held: No order was passed against the appellant by the
District Forum in its individual capacity – Appellant was shown as
Secretary of the Society during the relevant period – Prima facie,
for the default committed by the society, and in absence of any
personal liability imposed on the appellant, no order for
imprisonment u/s. 27 of the Act could be ordered against the
appellant – On filing these appeals, interim order granting stay of
arrest was passed and the said order continued from time to time –
Thus, the order of the District Forum to the extent of imprisonment
of the appellant, during the pendency of the appeal preferred by
the society before the State Commission, is suspended – State
Commission to consider the plea whether the appellant can be
imprisoned or not in absence of any order by the District Forum
imposing personal liability on the appellant.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 11969
of 2018.
From the Judgment and Order dated 08.11.2012 of the National
Consumer Disputes Redressal Commission, New Delhi in First Appeal
No. 657 of 2012.
With
Civil Appeal Nos. 11970-11972, 11973-11974 of 2018.
[2018] 14 S.C.R. 1223
1223
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1224                    SUPREME COURT REPORTS            [2018] 14 S.C.R.
Manoj Swarup, Ms. Lalita Kohli, Abhishek Swarup, Mahendra
for M/s. Manoj Swarup & Co., Ms. Madhusmita Bora, Pawan Kishore
Singh Advs. for the appearing parties.
The Judgment of the Court was delivered by
R. SUBHASH REDDY, J.
1. These appeals are filed by the appellants, aggrieved by the
order dated 08.11.2012 passed in First Appeal Nos.652/12; 653/12; 654-
656/12; 657/12 by the National Consumer Disputes Redressal
Commission, New Delhi.  For the sake convenience and brevity, the
facts of the appeal preferred against Appeal No.657/12 are being referred
to.  The said appeal is preferred against the order passed by the State
Commission by way of interim order pending the appeal.  These appeals
were filed in the year 2013. At first instance, this Court has passed
orders granting stay of arrest of the appellant herein on 22.03.2013 and
the said order continued from time to time.
2. The appellant herein was Secretary of Chandigarh State Bank
of Patiala Employees Co-operative USE Thrift & Credit Society. We
are informed that the said society is in liquidation and a liquidator is
appointed. The first respondent herein filed a complaint before the District
Forum and the society was directed to pay the maturity amount
along with the interest @ 10% per annum in addition to the award of
Rs.10,000/- by way of compensation and Rs.5000/- by way of costs.
Aggrieved by the order of the District Forum, it appears that the society
has preferred appeal before the State Commission and the order of the
District Forum was upheld and appeal was dismissed by imposing the
costs of Rs.5000/- and the said order of the appellate forum has become
final.
3. Alleging that the society has not paid the maturity amount along
with the interest as ordered by the District Forum, the first respondent
herein has approched the Distrct Forum by way of application under
Section 27 of the Consumer Protection Act, 1986.  The District Forum
sentenced the appellant herein to two years’ simple imprisonment and
imposed a fine of Rs.5000/-.  It was further ordered that in case of
failure to deposit the fine, appellant has to undergo further simple
imprisonment for a period of three months.
4. Aggrieved by the order of the District Forum under Section 27
of the Consumer Protection Act, 1986, the appellant herein has preferred
appeal before the State Commission and the State Commission has passed
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interim orders, subject to condition of d

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