Sunday 16 February 2014

Remedies available to consumer for execution of decree passed by consumer forum


A paper decree is of no use. It is worth filing a litigation only when the order can be enforced and implemented. The Consumer Protection Act (CPA) offers two remedies when a party fails to obey the order. However, there is confusion among litigants, the bench and the bar about the manner in which proceedings have to be initiated and conducted in case of non-compliance of orders.
Justice S B Mhase, the president of the Maharashtra State Commission, has passed detailed judgments giving guidelines to clarify the procedure governing execution proceedings for recovering the decretal amounts. [Amir Ali Tharani v/s Rajesh Sukhtankar & Anr. II (2011) CPJ 23 and Abhijit Amrrutrao Bedake & ORs. v/s Dwarkanath Dagduram Karwa -III (2011) CPJ 106]Remedy under Section 25

Section 25 of the CPA is applicable only to money recoverable under an award passed by the consumer fora. It is not applicable to non-monetary claims such as failure to obey directions given by the fora.
The section empowers a consumer forum to issue a recovery certificate for the amount payable under its order, which would be sent to the collector, who would recover the amount in the same manner prescribed for recovering arrears of land revenue.
The state commission observed that the consumer forum's role does not end on issuing a recovery certificate. The consumer fora exercise a supervisory control over the collector and revenue officers. If it is found that the collector has unduly delayed the execution of certificate, or wrongly refused or avoided executing it, the consumer fora must invoke their powers under Section 195 of the Code of Criminal Procedure. This means that the collector or revenue officers would face prosecution for contempt of lawful authority of the consumer fora.
While executing the recovery certificate, the collector usually recovers his administrative costs from the amount recovered. The deduction results in the complainant not getting the entire amount due to him. The state commission has held that the collector's administrative costs must be collected from the party from whom the money is being recovered, which would be in addition to the amount being collected as per the recovery certificate. This would ensure that no deduction is made from the amount to be realized by the consumer.
Remedy under Section 27
Section 27 of the CPA is applicable in case of non-compliance of an order of the forum. It can be invoked for failure to pay an amount due under an order of the consumer forum, or for disobedience of the directions given. These are criminal proceedings. The procedure applicable to a summary trial under Chapters XX and XXI of the Code of Criminal Procedure is to be followed.
This means that the complainant who seeks to enforce the order must appear before the district forum and his statement must be recorded. After this, summons are issued to the person who is accused of not having complied with the forum's order. If the accused fails to appear, the forum has to issue a bailable warrant through the police to secure his presence. Even when the accused appears, he has to submit a bail application. In ordinary course, bail must be granted, and jail is an exception. Along with bail, the accused must furnish a personal bond or surety as may be directed by the consumer forum.
Some fora grant time to the accused to file his reply, while some allow payment in installments without conducting the trial. The state commission has observed that this is legally not correct. The order has to be complied in its totality. In case of non-compliance, the consumer forum must explain the offence to the accused, and record his statement as to whether he pleads guilty or not. The trial should then be conducted summarily.Simultaneous proceedings
The state commission has held that multiple execution applications can be made either under Section 25 or under Section 27, depending upon the facts of the case. No appeal can be filed against interim, interlocutory and procedural orders passed in a proceeding under Section 27, but an appeal would lie only against the final order. These guidelines will give much needed relief to harried consumers.
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