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

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

No order for imprisonment under Section 27 can be passed against the Secretary of a Cooperative Society unless personal liability has been imposed in the initial order; as only the society was directed to pay, imprisonment of the appellant was unwarranted.

Parties
Appellant: H. K. Singla; Respondent: Avtar Singh Saini; Respondent: Employees Co-operative USE Thrift and Credit Society
Jurisdiction
India
Judgment Date
14 December 2018
Procedural Posture
Civil Appeal / Supreme Court Final Disposition
Outcome
Appeal disposed of; order of imprisonment against appellant suspended during pendency of State Commission appeal
Legal Topics
Penalties Under Consumer Protection Act, Imprisonment for Non Compliance, Personal Liability of Society Officials, Liquidation Proceedings
Consumer Law Penalties Under Consumer Protection Act Imprisonment for Non Compliance Personal Liability of Society Officials Liquidation Proceedings

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Parties

H. K. Singla

Appellant

Avtar Singh Saini

Respondent

Employees Co-operative USE Thrift and Credit Society

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Disposition

Legal Issues

  1. 1 Whether the Secretary of a Cooperative Society can be imprisoned under Section 27 of the Consumer Protection Act, 1986 absent personal liability
  2. 2 Scope of Section 27 for penal action against officials vis-à-vis society
  3. 3 Effect of society liquidation on recovery proceedings

Ratio Decidendi

No order for imprisonment under Section 27 can be passed against the Secretary of a Cooperative Society unless personal liability has been imposed in the initial order; as only the society was directed to pay, imprisonment of the appellant was unwarranted.

Court Disposition

Appeal disposed of; order of imprisonment against appellant suspended during pendency of State Commission appeal

Orders

  • Order of District Forum to the extent of imprisonment of appellant suspended during pendency of society's appeal before State Commission
  • State Commission may consider plea on whether appellant can be imprisoned absent personal liability