'execution' proceeding in consumer court
Skeptical optimist
(Querist) 02 December 2014
This query is : Resolved
District consumer forum ruled against a real estate developer, and asked him to return to complainant; principal plus interest in 30 days. After more than 90 days, respondent has not complied. From database of past verdicts involving respondent, I learnt respondent's modus operandi is to buy time by injecting delay at each step of 'execution' proceeding; and eventual compliance when about to be arrested (presumably, compensation interest rate ordered by the forum is lower than rate at which he can borrow capital from the market). So far, delays were introduced by absentism, claim of health issues, and getting stay order from state consumer forum.
Question 1: What are the other legal ways at respondent's disposal to inject delay into 'execution' proceeding?
Question 2: Do you recommend initiation of appeal for solvency of respondent's company (citing non-compliance of district forum order), in parallel? If yes, in case of potential later out of court settlement; is complainant (if he so wish) entitled to withdraw appeal for solvency OR complainant can ONLY initiate it?
Devajyoti Barman
(Expert) 02 December 2014
1. APPLY A PETITION FOR ISSUANCE OF ARREST WARRANT TO ENFORCE THE ORDER.
2.IT HAS NOTHING TO DO WITH THE EXECUTION CASE.
Skeptical optimist
(Querist) 02 December 2014
I am not sure if I could articulate the question well...By 'execution', I meant initiation of 'execution of consumer court verdict', which will finally result in arrest, after providing enough opportunities to the respondent to comply.
ajay sethi
(Expert) 02 December 2014
if respondent has not filed any appeal nor complied with order issue winding up notice to company . if respondent does not want his company to be wound up he will make payment . in alternative adopt execution proceedings for attachment of company property or its bank account
Skeptical optimist
(Querist) 02 December 2014
The respondent did not file any appeal. One clarification please; For non-compliance by the respondent, Is district consumer forum empowered to order even attachment of company property (I thought at max, it can issue arrest warrant of respondent as last resort).
ajay sethi
(Expert) 02 December 2014
the Consumer Protection Act has laid down the manner in which an order passed by a consumer courts can be executed (Section 25 of the Act). According to the Act, if any person does not comply with the order passed by the consumer forum, then the forum may order the property of the person to be attached.
If the party against whom the order is passed does not comply with the order within three months, then the forum may direct sale of the attached property and may award damages to the complainant and pay the balance, if any, to the opposite party.
ajay sethi
(Expert) 02 December 2014
he Act has also made provisions for penalties in case the order passed by the forum is not respected (Section 27 of the Act).
If the party against whom the order is passed does not comply with an order made by the Consumer forum, then such person may be punished with imprisonment or fine or both.
The limits for penalties are as under
Penalty Minimum Maximum
Imprisonment 1 month 3 years
Fine Rs 2000 Rs 10000
Skeptical optimist
(Querist) 02 December 2014
Thanks a lot, for your guidance and sharing all the relevant details. Have nice day...
Sailesh Kumar Shah
(Expert) 02 December 2014
very well and in detailed advised by learned expert sh. ajay sethi. there is no room to add further.
ajay sethi
(Expert) 02 December 2014
thanks for your appreciation
Rajendra K Goyal
(Expert) 02 December 2014
Well advised by the expert ajay sethi ji, agree to it.
T. Kalaiselvan, Advocate
(Expert) 06 December 2014
