L & T FINANCE LTD. versus PRAMOD KUMAR RANA & ANR.

L & T FINANCE LTD. versus PRAMOD KUMAR RANA & ANR.

The Supreme Court held that issuance of bailable warrants against the director was not warranted at the interlocutory stage because the company was represented by counsel and authorised representatives, there were no specific allegations against the director, and a review application was pending; therefore the orders of the National Commission directing personal appearance and issuing bailable warrants were quashed while preserving the Commission's power to require director's presence in future after giving opportunity to parties.

Parties
Appellant: L & T Finance Ltd.; Respondent: Pramod Kumar Rana; Original Opposite Party No.1: Paramount Villas Pvt. Ltd. & Anr.
Jurisdiction
India
Judgment Date
25 November 2021
Procedural Posture
Civil Appeal / Appeal From Orders Dated 26.08.2021, 03.09.2021 and 16.09.2021 of the National Consumer Disputes Redressal Commission in Consumer Complaint No.1653 of 2018
Outcome
Appeals partly allowed
Legal Topics
Bailable Warrants, Personal Appearance of Company Director, Representation by Authorised Representatives and Counsel, Review Application Against Tribunal Order, Allegations of Coercion in Settlement

Case Brief

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Parties

L & T Finance Ltd.

Appellant

Pramod Kumar Rana

Respondent

Paramount Villas Pvt. Ltd. & Anr.

Original Opposite Party No.1

Procedural Posture

Civil Appeal / Appeal From Orders Dated 26.08.2021, 03.09.2021 and 16.09.2021 of the National Consumer Disputes Redressal Commission in Consumer Complaint No.1653 of 2018

  1. 1 Whether issuance of bailable warrants against the director of the appellant company was warranted at the interlocutory stage
  2. 2 Whether personal appearance of the director could be dispensed with where the company was represented by counsel and authorised representatives
  3. 3 Whether allegations of pressure/threats to induce settlement required immediate production of the director before the National Commission

Ratio Decidendi

The Supreme Court held that issuance of bailable warrants against the director was not warranted at the interlocutory stage because the company was represented by counsel and authorised representatives, there were no specific allegations against the director, and a review application was pending; therefore the orders of the National Commission directing personal appearance and issuing bailable warrants were quashed while preserving the Commission's power to require director's presence in future after giving opportunity to parties.

Court Disposition

Appeals partly allowed

Orders

  • Orders dated 26.08.2021, 03.09.2021 and 16.09.2021 of the National Consumer Disputes Redressal Commission are quashed and set aside to the extent indicated
  • Original opposite party No.2 (appellant) is permitted to be represented through authorised representatives and through its counsel at this stage