Karnataka High Court
Manu Ittina vs M/S.Ittina Properties Pvt Ltd on 9 September, 2010
Author: Subhash B.Adi
Bench: Subhash B.Adi
IN THE HIGH COURT OF' KARNATAKA AT BANGALORE
DATED THIS THE QT" DAY OF SIEIPTEMBER 2010
BEFORE
THE HONBLE MR.JUS'I'ICE SUBHASH ;;--f f _
CRIMINAL PETITION No.406s/2.01»0f:~..
S11?
CRIMINAL PETITION N0sV._g069 g«2Q__<__1, 4070Ag20'10',:';
4071/2010. 4073/2010, 407~4/2010¢;u1V2?/20'1'0. "
412842010, 40010, 41'3.0i2010. 41:50/2010,
4101/2010, 4162/2010. 411530,'--2_'0~_10, 4165/2010.
4166/2010, 4167/2010, 43168/'2010;.4169/2010 &
.%;.I.-;ZQ/._2:QLQ- " E
BETWEEN:
[By Adv.)
Manu _
S / 0 Late1.1's{£a_haba3eshxisrarap-pa V
Age_dab_0i2.1;_ 3U1§,{CE_lI.'5_V E E
Residing 1:054, 'am Block
7€h7Ma111. Ko'r:.-1'171Aa11ga1:1"'-- .. ' '
Bangalorew 56013 ~ ,
Ms. M0:1a.VIt'tjna._ A ._
I4)'/"0 late I.1v1ahaVba1eshwarappa
iabput 2'?
'Residing at N0.1054, 3"' Block
V' " 7th ,~.Koram.angala
._0~Bgir:g;a]0'reVA'f 560 034
.. PETITIONERS
{Common in all the petitions)
_ M,/ s Ittina Properties Pvt. Ltd..
'N'0.105-4, 7"' Main, 3"' Biock
Koramangala
Bangalore - 560 034
Rep. by NIL
2. Sunny Pral<;asI:1
S / o Rajbir Singh
R/at No.168'?, 20"" Cross
Sec:tor--1, HSR Layout
Bangalore -~ 560 035 .. RESPQNDENTS
{In Cri.P.4O&6H8_/2Q1a.0} "~ 3
{By Sn'.RaghaVendra.S. Adv. for M/s Law Nest for R2)
AND:
1. M/s Ittina Properties Pvt. Ltd.,
No.1054, 7"! Main, 3rd Biock '
Koramangala -.
Bangalore -- 560 034
Rep. by NIL
2. Sxividyalakshmi 'A
W/o Sudershan
3. Sudershan.S '
S /o Srinixéasan '
Both ar.e"R',(at~--1\.T{).1' .1 -1?' »
23?" Main. LayotI{f~ aS'eetori;v2"'
Bap.ga1ore.,_ ' .. RESPONDENTS
(In Crl.P.4069/2010)
(By for M/s Law Nest for R2)
AND:
" «1 V-M/ittirna Prxépe-;*-fies Pvt. Ltd..
' No.1f)54;'«7Fh Main. 3"' Biock
T 'i{orari1ai1gai'a
._ '._Bar1ga}ore. 560 034
A V Rep. by-EIIL
Chattraj
T % W / "o Sourav Sen
V kkged about 28 years
Sourav Sen
S/0 T.D.Sen
Aged about 29 years
Both are R/at No.307, Prosper
Lakeshore Apartments
7"' Main. 4"' Cross, BTM Layout - __
2"" Stage, Bangalore --~ 560 068. .. RESPONDTENTS
{In Cri.P.407G;'.20_.10)
[BY Sri.Raghavendra.S. Adv. for M/s Law Nest f0f_3"-tag)" it A.
AND:
1. M/s Ittina Properties Pvt. Ltd.,
No.1054, 7"" Main. 3"? Block A
Korarnangala '
Bangalore --- 560 034
Rep. by NIL
2. Balakarthikeyan ._ % --_ , ,
S/0 K.Sunciaram A A
R/at No.51, Shanthin_i£:et.han ,
Vivekananda : Street; ' Ud ayanagar. V_ I .
Barxgaioneé i " ,. RESPONDENTS
.. . 'V 5 A {In Cr1.P.4071/2010}
(By is-'1,/_s_ Nest for R2}
AND: 1 A A A V' A
1. M / s Ittina Properties Ltd,
No,1054;"7Fh M.ain,"v3*d"'Block
..hjioramangaia..'V V
_ -_Ban_gaIore --~ 560634
Rep. by.NI~L
2. " ._ "TViVek.ana11i;i' N. R
A 8/0 Sri'.eA'E_?-ajagopalara
"R/at'No 4224/ 18, Ground Fioor
5111. Cross, Venkatapura
V _ _Korarr1anga.1a
"' V Bangalore. .. RESPONDENTS
A {In CI'l.P.4073/2010}
£33}; Sri.RaghaVendra.S. Adv. for M/s Law Nest for R2}
M/s Ittina Properties Pvt. Ltd.,
No.1054. '73' Main, 3?" Block
Koramangala
Bangaiore - 560 034
Rep. by NIL
Mr.C.Mahenclra
S/0 R.K.Chancirahas
Aged about 42 years
R/at Flat 1-D West Water V
Apartments Maiath Lane '
Perumanur Thevara
K0chi--882 015.
"';;1u2:Eé.P(jfNDEN'rs
{'hf1Cr1.P.'4A12v8/2010)
(By Sri.RaghaveI1dra.S. AdV:.flfo_r M/ LaW_'Nest_f0r R2)
AND:
1.
M/s Ittina%_Pi"eperti.eEb. Px%r:."'i.tc'i';, 'V
No. 105=é_;"7"'..__NIai.r}, H »
Koramafigaia F; :3, ,
Bangalore' w+V_5601.O34:f"~.:--_' V
R613./,b"§*'NIL"5"'- *
Mr.Ga'nesh,Mx' _ . _ _.
S 1 Q K.S.ManickaVasag"ar
,, Aegede' about. ' 38 years
'-VR/at-sNov=317, Chiframala
' 2 ,Apartr.m3;I'it., 1--B1oCk{East)
" e_B3rrasamira Road
Bangalore --» 560 O 1 1
.. RESPONDENTS
(In Cr}.P.4 129/2010}
V V' (By Raghavendra.S. Adv. for M/s Law Nest for R2)
*--M«/ s Ittina Properties Pvt. Ltd.,
N0.1054, 79' Main, 3"' Block
Koramangala
Bangaiore -- 550 034
Rep. by NIL
Mr.Rajeev Kumar
S / 0 Sri. Vijay Kumar Singh
Aged about 34 years
R/0 Fiat No.603
Sri.Krupa Garden, 20*" Cross
7*" Main, BTM 2"' Stage
I\E.S.Palya, Bangai0re-- 560 035
[By Sri.RaghaVendra.S. Adv. for M/s :\Ics--: for_R2)" ' _
AND:
1.
1 "
M/ s Ittina Properties Pvt. Ltdfit-_ .
No.1054, 7th Ma:n,B1o¢.k"' --
Koramangala ' A . " '
Bangaiore ---- 560 034
Rep. by NIL .... ._
Mohammefl _A
Aged a!q0i1f'3'I*ye;JrS A '
S/0 G.Nid.l\?Iu;fhtu2ta V
Residing Va't._NO';3:;"J._at '1\l_0.=1_ 08,' 3f£3..f1'bor
Apzirtemexrflbeaifing. No.._5, --
42n'<1_c:eoss. B'.s'f:v.£_I: .Stagé' ~ '
Bangalore ~ 5.60 ..(j:58'--~ " .. RESPONDENTS
" V' 3 " {In CI'I.P.4160/2010}
(By Sri..._i.§§2§.gi2avendI'a_..$. Adv. for M/s Law Nest for R2}
é"I§in_a'i?rdperties Pvt. Ltd.
A ' ,No.1Q54e;~--V_?'"1 Main, 3"' Biock
Koraina'11gaIa
Bangalore -- 560 034
A AA ,Rep."by NIL
"Aé.hish Surekha
Aged about 30 years
S/0 Sudershan
an Cr'}..P.-:41 3o.;"2_Q1oh}
Mrs. Pragya Bansai
W/0. Ashish Surekha
Aged about 30 years
Both are residing at N o.F--22, sai Poorna Hights
HSR Layout, Sector~2 Ext,
Bangalore 560 034. .. RESPONQENTS
(in cr1.p.-4161/'2o'1o)-._
(By Sri.Raghavendra.S. Adv. for M/s Law Nest for if
AND:
1.
M / s Ittina Properties Pvt. Ltd..
No.1054, 7*" Main, 3"' Block
Koramangala " .s
Bangalore ---- 560 034
Rep. by NIL
Shakuniala Srinivasanf _ 7
Aged about 32 years
W/0 Srinivasan '- _ v_ &
Residing at..1'4'O._.4_'{)7. Paimgrove 'Road
Victoria Laf;{ou;iI _ . * _ '
Banga1oire--4;?. .. RESPONDENTS
2 [inCrl.P.4162/2010)
(By s;-:.Rag1=: avend:-a:'s§I_ejAav--;._far M /s Law Nest for R2)
AND:
'-i\/i'/s2..mix~.a Pro';V:>Ae'rties Pvt. Ltd.,
' '«.,No.1054,4'1'*?l1 Main. 3rd Block
V' Koraman.
"':3an'ga1o.re 560 034
'A Rep. v1f>y'1'§!:iL
Ajit Kumar
V as ,Aged'"about 36 years
Sgfo K.K. Ramakrishnan
"Residing at TE' No.07, 3rd Floor
E CMC Khata No.564.~. K.R.Puram
T Vijinapura Viliage, Bangalore East Taluk
.. RESPONDENTS
{En CrI.P.4163/2010)
Bangalore.
{By Sri.Raghavendra.S. Adv. for M/s Law Nest for R2)
AND:
1. M/s Ittina Properties Pvt. Ltd.,
No. 1054. 7*" Main, 3" Block
Koramangala
Bangalore -- 560 034
Rep. by NIL _
2. Sreenesh V Malian
Major, S/o K.V.I\/Iallan V
Residing at No.16~»O3«»1O83T
Lakshmi Nivas, EDPL Employees,
Co «Operative Housing Society'-_
Kukatpally, V -
Hyderabad --- 500 073 ._ RESPONDIZNTS
__{Infcy-1.I?.4165/2010)
{By SI'i.Raghavenacl1-3%.:-T;,_ Ac1;y ." géesffor R2)
AND: ' L V
1. M/s.--1ttina'~}?ro1:i:::rties.P'Lrt. Ltd;
No .1054, '*;"*Vu: ,Mai3n, 3Fd*B1or:_k -
.
Bangalore _ 550 034"» "
Rep. ' ' "
_. V2. Rriprali ' ~
. "Aged-eabout 32 years
. ' 2 ,S/o.' Sf'-.Santhanam
" ato_No.57, 13* Floor,
_ "'E)_"9*1 A' Bko.ek~,.;" 'W A Cross,
' Koramangcrla.
Bangalore -- 550 034». .. RESPONDENTS
" {In Crl.P.4I66/2010)
{Bye :Sri'LRaghavendra.S. Adv. for M/s Law Nest for R2)
'Ii moi:
A "IV. M / s Ittina Properties Pvt. Ltd..
No.105»4}, 7"' Main. 3'" Block
Koramangala
Bangalore -- 560 034
Rep. by NIL
2. Shirsendu Deb
Aged about 35 years"
S/o Sital Chandra Deb
3. Srnt. Santasina Deb
W/ o Shrisendu Deb
Aged about 30 years
Both are residing at Saiteja Prestige
F' lat No.40}, Pai Layout "
Bangalore _ 560 016 '1i2EVsPoNoEN';se
. '-..{_1n cr1;P.41.67/2010)
{By Sri.Raghavendra.S. Adi}. for R2)
AND: "
1. M / s Ittina."Pro1f_)le:ties: V
No.105é-, 7t%2"«Mam.. 3r'd.}31oc1:..yy--
Koramangala ¥I;__ . V l_ A
Bangalore' 41'; 560?IL}34 ' ~ . «V
R613... by NIL
2. Yashova ;"d11anV'Rao. lviopur
Aged abouutg 32 .years
S51:/o Samastmder Rao Mopur
_ V-Resi:;1lngl.at No.Fl'a'i' No.TF'--02, 3rd Floor
V ' . No 56.4, .Vijinapura Village,
gK;R."Pui*a"l1lo'b--li
. "-Bangaloxfe EastTa1uk .. RESPONDENTS
V 1 {In Crl.P.4168/2010)
H 'A {By Sfi.Ragl'1«ayendra.S. Adv. for M/ s Law Nest for R2)
Ittina Properties Pvt. Ltd,
1\§o.1054. 7"' Main. 3"' Block
Koramangala
Bangalore -- 560 034
Rep. by NIL
Sharath Kurnar
Aged about 32 years
S/o P. Gangadharan
Residing at No.3}
Kalappa Layout. Rajanna Colony
Basaveshwaranagar
Bangalore -- 560 037
(By Sri.Raghavendra.S. Adv. for M/s Law ~ '~ Vt V'
AND:
1.
Bjangaiore.
M/ s Ittina Propertiezafvt. I-}td.,,. V. " "
No.1054, 7th Main, 3m Block,
Koramangala V A ' - V
Bangalore ---- 5:60 034;' _ _ '
Rep. by *
Mr. Ratalya Me'g111ka;ju_:r~.r't_A r_ *
S/o_.Mr. Rata1aV;_eera- _Brahmam.. V
Aged aboi1tt.3O years." _ _ ~
Residing Flat "
No. 189, '1 90,' Armfutha.y'Residency
6"" Cross, VC'eleVb_rity. Paradise Layout
Doddathogur, Vfillecti'-on'ic City Post
. A ' 2 'Veer Bramham
" V years
"Resifli=n_g.at~.1\Eo. 19, 3?" Floor
.' ' Orchard Block, Paramount Raghavendra Arisht
Bangalore -- 560 037.
Near--..VKun'danahaIIi Gate, Marathahalli,
.. RESPONDENTS
{In CI'1.P.4 1 70/2010)
Sfi,f{aghavendra.S. Adv. for M/ S Law Nest for R2}
V .,.'Rk:s:Po§ID§:N1's'
an car1'4,;>.4:.5_9,/_gQ1o)
Criminal Petition No.4068/2010 is filed under Section
482 Cr.P.C. praying to quash proceedings in EP No.27/O9
arising out of C.C.No.60/O9, Passed by IV Addl. Dist.
Consumer Disputes Redressal Forum, Bangalore, filed.-"under
Section 27 of the Consumer Protection Act seeking progseeution
of the petitioners in respect of the order passed in favour. of the
2nd respondent and cost of this petition. ' n P" 5 ~
Criminal Petition No.4069/2010 is filedpun.der_fl.aectioIi.,
482 Cr.P.C. praying to quash proceedings EPA-t&Io.t'11_l5/08
arising out of C.C.No.37/09, Passed by Dist;
Consumer Disputes Redressal Forum, Banga1ore';~ filed .."unCie.r
Section 27' of the Consumer Protection.Act_seeking Aprosecutiongg
of the petitioners in respect of thexorder passed fayaur of the--_ '
2nd & 311* respondents and cost ofvtiiisp petition.
Criminal Petition 1\iq.4o7o/';2oi'o is filed 'under Section
482 Cr.P.C. praying to --_proceed_1n_g's. in EP No.116/O8
arising out of C.C.No.56/O9,"befo.re~' IV AddlL Dist. Consumer
Disputes RedressalgForum,,_Banga3,o1-e, iiiedujiider Section 27 of
The Consumer Protection ,seei{.ing' prosecution of the
petitioners in respelet-of the order passed-i--n' favour of the 2nd St
3rd respondents 'and-,_cojst"o_i_' th1s_ pe'tition. »
CriminaI"'Petition No';-$071/2010 is filed under Section
482 Cr.P..C.*-- p1~aying-~,,to..,quash' proceedings in EP No.25/O9
arising out of C.C.i,\io.4--?/'09~,' Passed by IV Addl. Dist.
Consumer Disputes Redres"s»al Forum, Bangalore, filed under
Section 27 of the"Co,nfsu1":_ier*' Protection Act seeking prosecution
of the petitionersin respect of the order passed in favour of the
*2f*'* rc{spon.dent andflcostof this petition.
A "Criininai'ivPtetition No.4073/2010 is filed under Section
482'«Cr,P;C1*«._praying to quash proceedings in EP No.30/09
arisi.ng'out of'j_Ci'C.No.57/O9, before IV Addl. Dist. Consumer
Disputes Redreissal Forum, Bangalore, filed under Section 27 of
the Consumer Protection Act seeking prosecution of the
Q 'f._pp'etitioners_. in respect of the order passed in favour of the 2""
' respondent and cost of this petition.
ltlCriminal Petition No.-4074/2010 is filed under Section
Cr.P.C. praying to quash proceedings in EP No.60/O9
'<,arising out of C.C.No.}.9/O9, Before IV Add}. Dist. Consumer
. pg «Disputes Redressal Forum, Bangalore, filed under Section 27 of
E3
Criminal Petition No.4161/2010 is fiied under Section
482 Cr.P.C. praying to quash proceedings in C.C.No.33/O9 in
EP No.122/O8, Passed by IV Addl. Dist. Consumer Disputes
Redressal Forum, Bangalore, fiied under Section 27Yofgthe
Consumer Protection Act seeking prosecution of the petitioners
in respect of the order passed in favour of the 2"d,.~«res_po_nd'ent.p
and cost of this petition.
Criminai Petition No.4162/20iyO,,,is fi1edV'tii1derV"Sectiovn uh'
482 Cr.P.C. praying to quash proceedings' in 'C.C'.No.4_2./09 in?
EP No.119/O8, Passed by IV Addl. £)ist:,"'Consumer' Dizspautesi
Redressal Forum. Bangaiore, filed under Sectio;n'27~ of the}
Consumer Protection Act seeking prosecution of rithepetitiorners , '
in respect of the order passed Iri-vfaivour of the ..,2_i"¢d respondent
and cost of this petition. P'
Criminal Petition No."4i63/2:01'0.._i's_ filed under Section
482 Cr.P.C. praying to quasih'pro_cé€;»dings "in'C.C.No.20/O9 in
EP No.61 /O9, Passed by iV"Add1__. Dist; C~ojns'urner Disputes
Redressal Forum, _'i;:'>angaiore,' ti.ied'=.un_der Section 27 of the
Consumer Protec.'tio'n_,/'ict seelitiiig p1°osecutioen of the petitioners
in respect of the»vord..evr'--'_pas'sedin favour of the 2115' respondent
and cost ofthis peti_t_ion'.*-- . ' P" =
Criminait1Pet.itionrNo.4iv65/2010 is iiied under Section
482 Cr.PjC. '~prayingf~to 'proceedings in EP No.34/10
Passed by W Addi.' Dist,;'C0nsurr1er Disputes Redressal Forum,
Bangalore, fiIe.dunder Section 27 of the Consumer Protection
Act seeking prosecution "of the petitioners in respect of the
_ order passed in favour of , the 2nd respondent and cost of this
petition." 2
No.4166/2010 is filed under Section
482._Cr_.P.C'.«praying to quash proceedings in C.C.No.22/O9 in
EP No.76/O9,'o'Passed by IV Addi. Dist. Consumer Disputes
Redressai V-Forum, Bangalore, filed under Section 27 of the
.4 Consumer Protection Act seeking prosecution of the petitioners
"fin '1'espect "of the order passed in favour of the 2nd respondent
_a~r[_1d costof this petition.
Criminal Petition No.4167/2010 is filed under Section
""éi.82..Cr.P.C. praying to quash proceedings in C.C.No.49/09 in
"EP No.75/O9, Passed by IV Addl. Dist. Consumer Disputes
"'-Redressal Forum, Bangalore, filed under Section 27 of the
Consumer Protection Act seeking prosecution of the petitioners
in respect of the order passed in favour of the 2"'?! respondent
and cost of this petition.
Criminal Petition No.4~I68/2010 is filed under, Section
482 Cr.P.C. praying to quash proceedings in C.C.No;'2i",'.Q9_ in
EP No.55/O9. Passed by IV Addl. Dist. Consum;er'Dj1_'spute_s"_
Redressai Forum, Bangalore, filed under Section' 2?, of
Consumer Protection Act seeking prosecution o.f..th__ev.petitioners '
in respect of the order passed in favourof the 2¥%d'respon_d.ent
and cost of this petition. I ' ~ * H '
Criminal Petition No.4~169/201O=.isW.filed gt:-iider 'Section
482 Cr.P.C. praying to quash'>pro.ceedin-gs in EP *No.iii.€f3/09 *
arising out of C.C.No.2l/09, Passed by PIVF Add}. Dist.
Consumer Disputes Redressal Forum, 'Bangalore, tiled under
Section 27 of the ConsumerProte'ction'Ac'i;.seekingprosecution
of the petitioners in respect of the o;rder"i.passe.d in favour of the
2nd respondent and cost of th1_s"pett1tio'n.__ A *
Criminal Petition No.4'1_7o/2010' is"'i'iled under Section
482 Cr.P.C. praying...-t:o q«ua__sh~_proceed.ings in EP No.51/O9
arising out of -:C.C.No,48/"0;-La " Passed by IV Add}. Dist.
Consumer..Disputes"'1Redre.ssal Forurri'. Bangalore, filed under
Section 2? of the?;Cons'.uni.er'«Protection Act seeking prosecution
of the petitioners invtfe.spectl'ogf"t--he order passed in favour of the
2nd 8: 3rd re--spondents'ajrid 'cos"t.oi" this petition.
These petitions'.'~coiiain"g on for admission this day, the
W Court niade.the foiiowingz V
ORDER
petitions are directed against the order on app1ica«tion.__'fiieAd" by the respondent No.2 -- complainant under l'":7.4A"Sections 319 of Cr.P.C. read with Section 5 of the , ..CbI.I1pariies Act.
T w 2
2. Case of the respondent {complainant} before the District Consumer Forin is that, complainant is the decree hoider, who obtained a favourable order against i\/I/Vsiilttina Properties Pvt.Ltd. represented by the Managin~g'--fDVireCctor Sri.I.Mahabaieshwarappa in C.C.No.2230/200.7 iifdnated S 29.3.2008. In pursuance of the said:V"decrec,.v the filed Execution Petition No.27/ 2009 for executing' against the Company and the Mariaging CL':-irecVto_r.=. Sdiiioidididrever, the said decree was not' .c.ornplied;e.SVt_:';iience, fihe""so"ught for conversion of the petition under Section 2'? of the C:o'ns_um;er'sb short referred to as 'the Act.-')'.' _o-fh Vgsarne, the Consumer Forum tr.eatedASAtiSie application as' compiaint by order dated
23. i0.200SAJ'an'd_sin1i1ar:.'orders"were passed in other cases aiso and issued sumumons to the Company as well as the Managing VI.)"irect(;.1~:' zfnowever, «Vdtiring the pendency of the said p'1'rocee.dii1g:stsltiihe"Managing Director Sri.I.l\/Iahabaieshwarappa S died'or1_'Vhi8.V12i2:ti09.
it In View of the death of I.Mahabaieshwarappa, '_'_c~oInp1ainant filed an application under Sections 305 and 319 read with Section 5 of the Companies Act for impleading the present petitioners as accused in the said &=»»~' complaint on the allegation that, they were the active Directors and they had participated in the day~to~clay business o_f_the Company and also that they are the heirs of the Managing Director. The Consumer forum, in ~ applications, issued summons to the petitioners appeared before the disputed their liability and COfl:§f.Cfi~€ZlCd theyvilaiiehnot active Directors and the proceevd'ings.VV_Vcannot initiated against them. The Consunie'.' orders observing that, the petitioners._are.'lthe1 actiyefjirectors has not been denied Director (father of the being the heirs are liable for' aceefaingly, it allowed the applications 'crders, these petitions are filed. 4;' ~ Sri.\l'.;B..v$hixrlakiimar. learned Counsel for the .I)}5;itio'I1ers."isubmitted"mat, the proceedings were initiated in 2l{)VG.7:}~against the Company and the Managing C Director. 'l.'~he_nd;ecree is also passed against the Company and ~ Managing Director. Admittedly, these petitioners were not A pai'iiesl'1t;o the original proceedings. it is not even the case of ,.._hi;lhe__ccomplainant that these petitioners violated the decree or . ;not complied with any of the orders passed by the Consumer , «*%:E'...
I u Forum. Complaint is admittedly against the Managing Director. It is only on account of the death of the Managing Director, these petitioners are sought to be imp1eaded'.as accused. He submitted that, the petitioners canno't"b~e'_' _ as accused because the Managing Director.is.lV.Al_dead.::
provisions of Sections 305 and 319 to the facts and circumstances of thephlcase provisions of Section 5 of the Companies Act.
5. On the other "hand,7.gSri;Sl.'Raghavendra, learned Counsel appearingsfor 'cornplairiagjfléelilonsly contended that. the decreeliis theCo.rnjpariy}WllThough Company was repreysente:d'i")1rector, in case of death of the Managing 'Director.,:o1=. lbirehctor, under Section 5 of the Companies in ldefa'eilt,,:_t_.t1e other Directors are liable for _ Vprosecu_é:t1on.as well the proceedings. He submitted that the l"'~.col1np1paiiiant. produced the material to show that, the petitioners"ai_Le___tfde"Vactive members of the Company and they were conducting day«~to-day business of the Company apart H H from the fact that they are the heirs of the deceased Managing l"E)li1<ector:'l and submitted that, the orders do not Warrant for E F ' interference. { r' :
18
6. During the course of hearing of these petitions, there was a suggestion for settlement. An offer is made by___ the petitioners herein and accordingly, they have filed m_er:1_os_,i_iin all the cases interatta agreeing to pay interest i2'%V';'=,1'y:'----1;):er .
annum and deiiver the possession of _ _the_houses';'fiats'V'a.s"the '4 case may be within 30 days from today and it from today, they will provide all ci\2ric"arnenities.,_y_to Ethe compiainant.
7. However, the Couknsei' for submitted that, the interest.:,offeredmis and it is not agreeable. the" question is, as to whether t1ie'vproijVeedii§ags 'ini'tiated'----a.gainst these petitioners by the Consumer is able or not.
8; -» It ishhu regard, it is usefui to refer to the .'of Section of the Act, which reads as under:
--A '--.*'Penai»t.ies{- (1 } Where a trader or a person against whom aiyyeoniplaint is made or the complainant fails "or 'omi1's to comply with any order made by the . District Forum, the State Commission or the National " +..4Cornm1lssion, as the case may be, such trader or x _ tfierson or complainant shalt be punishabie with ' trrzpnsonment for a term which shalt not be less than one month but which may extend to three years, or with fine which shalt not be less than two thousands rupees but which may extend to ten thousand rupees, or with both: $4 \ (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the District Forum or the State Commission or the, National Commission, as the case may be, shall have the power of a Judicial Magistrate of the class for the trial of offences under this Act, and fond e- V ' such corferment of powers, the District Forum or State commission or the National Commissionhszs case may be, on whom the powersore so cor'g'e_r:.'ed», , shall be deemed to be a Judicial Magistrate the " ' first class for the purpose of Code' cJj'».C'n1niina1p'~s,,,.., 5% Procedure, 1973 (2 of 1974), ' " V * * ' (3) All offences undef'--vs.,,this Act , he tried summarily by the District Forum or" the State Commission or the Nationallfiornrizission, as the 'case maybe." .. . u Subsection (1) of Section:.2'?'»of"the.,,h,ct confers' power on the District Forum,.SQtatefC.ornrnission orijthe National Commission to inifiate.,vc1'~in1iria1'prcxceedihgs agaiastf whom the complaint is made forvifailurei 'omit to comply with the order made by the VVD.istrictV'Fo'r1.1_rriV,, ::_State Commission or the National _..,commission*. Suhésection, (2) confers power of the Magistrate AV'Vand:psufo~«Sectiori'f3) deals with the procedure. The proceedings underthese provisions are summary proceedings.
9. "According to the complaint, it is alleged that the IVlanagi'iA:g Director, who was party to the proceedings, had to comply with the order. In case of criminal offences, , the offences are committed by a person either on account of rbgtrvj ¢,:c,,,,._, his position or the office he is holding or by his act or by his conduct. Admittedly, the decree is against the Company as well as against the Managing Director of the According to the complainant, the Managing _ violated the order of the Consumer_E'porurn._.""' whether Section 319 of Cr.P.C. is ri:ght:'proV:ision' it purpose of substitution of the-'llcther l3-i_r'ectors;="heeausejlthe Managing Director died and did notpicornplyafwith':the}order of the Consumer Forum. 2 V
10. The there is non-
compliance themorder. It is not the complainant'sllicaiseiSt};at,apetitiolners were party to these proceedings', prder, If that is so, there is no material toxshow, as .to'i'ho\iE_.'ethese petitioners are guiity of the .«vv.p_offericie..vv Section Section 319 of Cr.P.C. does not provide .fo1*.psi,ib'stitution of the accused, nor the death of the accusedvvitonfer power on the complainant to bring legal
--p represen'tatives of the accused.
However, Section 25 of the Act does provide for execution of decree against the Company and its properties. Section 27 of the Act is a penai provision, strict interpretation I, (91;
2! is necessary. However. the Consumer Forum while considering the application should have at least looked into as to the scope of Sections 305 and 319 of Cr.P.C. and of the Companies Act. Merely because the _ relative, merely because they are pIM)m1rectors';**»the.y automatically become liable for is shown that they have committed an offence. lnmyv opinion. the order suffers from lack ofllllllproper of the provisions of law and ~-the in my opinion, without expressing application, it is appropriate t9' direct reconsider the matter and lthgeqluestion as to whether the or not under the provisions' of 'Section' Act.
.. This tlieharid case of the complainant that he had maizle 'theeA.i1ii(estrnent with the Company on the promise of gettingslielte_r.'Al.l.::"ls/lay be there is a technical reason, but that V _ should not come in the Way of the complainant or the parties, genuinely have suffered to get back their reasonable e._ldelma.--iild. It is in this regard, I find it appropriate to mention
-that, the commitment, which is made by the petitioners by way of memos be taken into consideration by the Consumer .«9A:frL 22 Forum and if there is also possibility of further re-negotiating the matter, the Consumer Forum shall also look into the same and to the extent of undertaking given in the memos;-_it._is treated as commitment made by the petitione_rs'--«lto-..: _ complainant, if there is any default, it is alwagra. the Consumer Forum to look into the sarhe.
the memos filed by the petitioners' shall also beto up the Consumer Forum. If the agree' settlement, irrespective of whether be l1v)vl1A'A()'VC11ted or not, they shall comply it given in the memo. V
13. a date may be fixed for appeiaraneelfl. N For the reasons 'stated above, these petitions are partly alloweid it and the=..orders impugned in all these Criminal petitionsVAStai1ti"~--C;}1aShed and all the matters are remanded to Consumer Disputes Redressal Forum, V . Banlg""aloIie:.. parties are directed to appear before the , " _"¢gnsumer..F0rum on 27*" September 2010. 558 it KNM/-