BAJWA DEVELOPERS LTD. Vs. HARPREET BHAGIRATH

JUDGEMENT

(1.) The complainants/respondents had filed consumer complaints against the appellants which were allowed by the State Commission with a direction to the appellant to refund the amount received by them from the complainant along-with interest and compensation in terms of the said order.

(2.) The order passed by the State Commission in the consumer complaint having not been complied the complainants approached the concerned State Commission by way of execution applications. In the execution proceedings the State Commission initially attached the bank account of the appellants. The parties thereafter filed compromise applications before the State Commission containing the terms of the settlement arrived at between them and post-dated cheques in terms of the said settlement were given by the appellants to the complainants. The said cheques, when presented, were dishonoured. The State Commission while disposing of the execution applications as withdrawn/satisfied, had granted liberty to the complainants to get the said execution applications revived if any of the cheques was dishonoured. It was also directed that if any of the cheques was dishonoured the appellant would be liable to pay Rs. 50,000/- for each bounced cheque and the said amount would be deposited with the Consumer Legal Aid Account of the State Commission. It is the afore-said direction of the State Commission for payment of penalty @ Rs. 50,000/- for each dishonoured cheque which is under challenge in these appeals.

(3.) The submission of the learned counsel for the appellant is that neither Section 25 nor section 27 of the Consumer Protection Act, gives jurisdiction to the consumer fora to impose penalty of this nature. I am in agreement with the learned counsel for the appellant in this regard. In terms of section 25(3) of the Consumer Protection Act, the State Commission can issue a recovery certificate to the concerned collector requiring him to recover the amount payable by the appellants to the complainants as arrears of land revenue. In terms of section 27(1) of the Consumer Protection Act, the State Commission, in case of failure or omission of the appellants to comply with its order, can punish them to imprisonment which would not be less than one month but can exceed upto three years and/or can also impose fine which shall not been less than Rs. 2,000/- but can extend upto Rs. 10,000/-. Therefore, the order of the State Commission to the extent penalty of Rs. 50,000/- on the dishonour of each cheque was imposed upon the appellants cannot be sustained and the same is accordingly set aside.