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Supreme Court of India

L & T FINANCE LTD.versusPRAMOD KUMAR RANA & ANR.

Citation
2021 INSC 789
Decided
25 November 2021
Disposal
Case Partly allowed

Holding

The Supreme Court quashed the orders directing personal appearance and the issuance of bailable warrants, holding that such measures were not warranted at the stage of the proceedings.

Summary

The case arose from Consumer Complaint No.1653 of 2018 before the National Consumer Dispute Redressal Commission, where the complainant alleged that representatives of two opposite parties forced him to sign blank papers and threatened him to obtain a settlement. The Commission ordered the directors of both opposite parties to appear personally or via video conference to explain the allegations. While the director of the first opposite party complied, the director of L&T Finance Ltd. (the second opposite party) did not appear, leading the Commission to issue bailable warrants against him. L&T Finance Ltd. appealed to the Supreme Court, contending that the warrants were premature as the allegations had not yet been fully examined and the company was represented through counsel and authorized representatives. The Supreme Court held that bailable warrants are a last resort and, given the pending review application and representation through counsel, the warrants and orders directing personal appearance were unwarranted and therefore quashed. The Court allowed the appeals in part, permitting the appellant to continue representation through counsel while leaving open the possibility of future personal appearance if required.

Issues considered

  • Whether the National Consumer Dispute Redressal Commission could validly issue bailable warrants against a director for non‑appearance when the party is represented through counsel and authorized representatives.
  • Whether the Commission’s orders directing personal appearance of the director were justified in view of pending review applications and unexamined allegations.
  • Whether the seriousness of the alleged coercion necessitated immediate coercive measures such as bailable warrants.

Subjects

Consumer ProtectionNational Consumer Dispute Redressal Commissionbailable warrantpersonal appearancevideo conferencingcoercionsettlement pressurereview applicationadministration of justice

Judgment

946                      [2021]REPORTS
               SUPREME COURT    11 S.C.R. 946             [2021] 11 S.C.R.


A                           L & T FINANCE LTD.
                                        v.
                     PRAMOD KUMAR RANA & ANR.
                     (Civil Appeal Nos. 5894-5895 of 2021)
B                            NOVEMBER 25, 2021
               [M. R. SHAH AND B. V. NAGARATHNA, JJ.]
             Administration of justice: Consumer complaint before
      National Commission against original opposite party no.1 and 2 –
      On the date of hearing, submission made by counsel of original
C
      party no.1 that matter was settled between the parties – On the next
      date of hearing, complainant made grievance that he was forced
      by the representatives of the two opposite parties to sign on blank
      papers and visits threatening him were made by their representatives
      to force him into a “settlement” – On 26.08.2021, National
D     Commission directed the directors of the two companies to appear
      on the next date in person, either in physical hearing or through
      video conferencing with counsel to clarify their position with regard
      to these allegations – On next hearing, the director of original
      opposite party no.1 appeared through video conferencing –
      However, on behalf of original opposite party no.2, the authorised
E
      representatives and their counsel only appeared before the National
      Commission – The director did not appear as directed – Submission
      made on his behalf that application seeking exemption from
      appearance was moved which was pending in the Registry – On
      3.9.2021, National Commission again directed the directors of both
F     the companies to appear on next date – The director of original
      opposite party no.2 again did not appear – It was pointed out that
      against order dated 26.08.2021, a review application was filed
      which was pending – By order dated 16.9.2021, National
      Commission directed to issue bailable warrants against the director
      of original opposite party no.2 and directed his production before
G
      it on next date – Aggrieved original opposite party no.2 filed instant
      appeal – Held: The allegations made by the complainant were serious
      in nature – However, at the same time, the allegations were yet to be
      considered in detail by National Commission, after giving an
      opportunity to the opposite parties – The opposite parties were
H     represented through their counsels and also through their authorised
                                       946
  L & T FINANCE LTD. v. PRAMOD KUMAR RANA & ANR.                          947


representatives – No specific allegations were recorded in order          A
dated 26.08.2021 against the director of original opposite party
No.2 – Even the review application against order dated 26.08.2021
was pending before the Tribunal – Therefore, in the facts and
circumstances of the case, issuance of bailable warrant was not
warranted at this stage – Bailable warrants are to be issued as a
                                                                          B
last resort and only where it is found that the opponent parties are
not cooperating at all and that they are avoiding appearance
deliberately and/or they are not represented at all either through
their authorised representative or through their counsel – Orders
dated 26.08.2021, 03.09.2021 and 16.09.2021 are quashed – At
this stage, original opposite party No.2 is permitted to be represented   C
through authorised representatives and through counsel – However,
it will be open for the National Commission to require the presence
of the director of the appellant company, if required, in future.
      Partly allowing the appeals, the Court
       HELD: It is true that if the allegations made by the original      D
complainant recorded in order dated 26.08.2021 “to pressurize
him and giving threats to enter into settlement” are found to be
true, the same are very serious and can be said to be interfering
in the administration of justice. However, at the same time, the
allegations are yet to be considered in detail by the National            E
Commission after giving an opportunity to the opposite parties.
The opposite parties are represented through their counsel and
even through their authorised representatives, who remained
present before the National Commission. Even as per the
allegations made by the complainant recorded in order dated
26.08.2021, the representatives of the opposite companies gave            F
threats and forced him to enter into settlement and there were
no specific allegations against the Director of original opposite
party No.2. Even the review application against order dated
26.08.2021 is pending before the Tribunal. Therefore, in the facts
and circumstances of the case, issuance of the bailable warrants          G
against the director of original opposite party No.2 was not
warranted at this stage. It cannot be disputed that free access
and unfettered right to approach/justice, as permissible by law, is
inbuilt in our judicial system where rule of law prevails. Any

                                                                          H
948            SUPREME COURT REPORTS                      [2021] 11 S.C.R.


A     attempt to impede or obstruct the course of justice, not to speak
      of exercising any coercion against anybody, who is before the
      court or authority in order to seek justice, cannot be lightly taken
      or be countenanced with. However, at the same time, the case of
      the complainant is yet to be adjudicated upon and/or established
      and proved and the opportunities are to be given to the opposite
B
      parties. In view of that, orders dated 26.08.2021 and 03.09.2021
      directing the director of the appellant company to personally
      remain present through physical mode or through video
      conferencing and subsequent order dated 16.09.2021 issuing
      bailable warrants are quashed and set aside. However, it will be
C     open for the National Commission to pass further order after
      giving opportunity to both the opposite parties to represent their
      case on the allegations made by the original complainant recorded
      in order dated 26.08.2021. At this stage, the appellant-original
      opposite party No.2 be permitted to be represented through his
      authorised representatives and through his counsel. However, it
D
      will be open for the National Commission to require the presence
      of the Director of the appellant company, if required, in future.
      Review application to recall order dated 26.08.2021 pending
      before the National Commission, may be heard, decided and
      disposed of by the National Commission in accordance with law
E     and on merits. [Paras 5.1, 6][951-C-G; 952-C-D, E-H; 953-A]
            CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 5894-
      5895 of 2021.
             From the Judgment and Order dated 26.08.2021 and 03.09.2021
      of the National Consumer Dispute Redressal Commission in Consumer
F     Complaint No.1653 of 2018.
           Ms. Ruchi Kohli, Ms. Usha Singh, Ms. Nidhi Saini, Ms. Srishti
      Mishra, Advs. for the Appellant.
            The Judgment of the Court was delivered by
G           M. R. SHAH, J.
             1. Feeling aggrieved and dissatisfied with the impugned orders
      dated 26.08.2021, 03.09.2021 and the subsequent order dated 16.09.2021
      passed by the National Consumer Disputes Redressal Commission

H
  L & T FINANCE LTD. v. PRAMOD KUMAR RANA & ANR.                             949
                   [M. R. SHAH, J.]

(hereinafter referred to as “National Commission”) passed in Consumer        A
Complaint No.1653 of 2018, the original opposite party No.2 – L & T
Finance Ltd. has preferred the present appeals.
      2. Facts leading to the present appeals in a nutshell are as under:-
       2.1 That one complaint being Consumer Complaint No.1653 of
2018 filed by the respondent No.1 Pramod Kumar Rana is pending before        B
the National Commission. The aforesaid complaint came up for hearing
before the National Commission on 12.08.2021. Learned counsel for
the original opposite party No.1 – M/s. Paramount Villas Pvt. Ltd. &
Anr. made a submission on the instructions that the matter has been
settled between the parties. Learned counsel for the complainant             C
requested for an adjournment to seek instructions in this respect. The
matter was adjourned to 26.08.2021.
       2.2 The complaint was taken up for further hearing on 26.08.2021.
Learned counsel appearing for the original opposite party No.1 again
submitted on instructions that the matter has been settled between the       D
parties. However, the complainant, who appeared in person, made a
grievance that he has been pressurised/forced by the representatives of
the two opposite parties to sign on blank papers and visits threatening
him were made to his residence by the representatives to force him into
a “settlement” which according to him is neither amicable nor voluntary
and nor equitable. The National Commission by order dated 26.08.2021         E
directed Shri Mukesh Aggarwal, Director of the original opposite party
No.1 company and one Shri Dinanath Mohandas Dubhashi, Director of
original opposite party No.2 company to appear in person, either in
physical hearing or through video conferencing with counsel on the next
date of hearing to explain the situation and clarify their position with     F
regard to the allegations made by the complainant. The matter was
adjourned to 03.09.2021.
       2.3 On 03.09.2021, the said Shri Mukesh Aggarwal, Director of
the original opposite party No.1 appeared through video conferencing.
On behalf of original opposite party No.2, the authorised representatives    G
and their counsel appeared before the National Commission. However,
Shri Dinanath Mohandas Dubhashi, Director of the original opposite party
No.2, who was required to appear as per previous order dated 26.08.2021,
did not appear. It was submitted on his behalf that an application seeking
exemption for his personal appearance had been moved, which was
pending in the Registry. The National Commission directed to list the        H
950            SUPREME COURT REPORTS                          [2021] 11 S.C.R.


A     case again on 16.09.2021 and directed that on that date, both Shri Mukesh
      Aggarwal and Shri Dinanath Mohandas Dubhashi shall also appear either
      personally or through video conferencing.
             2.4 That on 16.09.2021, Shri Mukesh Aggarwal, Director of the
      original opposite party No.1 remained present. However, again Shri
B     Dinanath Mohandas Dubhashi did not remain present. It was pointed
      out that against the order dated 26.08.2021, a review application was
      filed, which is pending. As Shri Dinanath Mohandas Dubhashi, Director
      of the original opposite party No.2 company did not remain present, by
      order dated 16.09.2021, the National Commission directed to issue bailable
      warrants against Shri Dinanath Mohandas Dubhashi, Director of the
C     original opposite party No.2 company and directed that Shri Dinanath
      Mohandas Dubhashi be produced in person before the National
      Commission on 18.10.2021. Feeling aggrieved and dissatisfied with the
      impugned orders dated 26.08.2021, 03.09.2021 and 16.09.2021, the original
      opposite party No.2 – L& T Finance Ltd. has preferred the present
D     appeals.
            3. Though served nobody has remained present on behalf of the
      respondent No.1 – original complainant.
            4. We have heard Ms. Ruchi Kohli, learned Advocate appearing
      on behalf of appellant – original opposite party No.2 company.
E
             5. Having gone through and perused the impugned orders passed
      by the National Commission, it appears that in view of the allegations
      made by the original complainant recorded in the order dated 26.08.2021
      that “he has been forced by the representatives of the two opposite
      parties to sign on blank papers and threatening visits were made to his
F     residence by the representatives to force him into a settlement”, the
      impugned orders have been passed by the National Commission by
      observing as under in the order dated 26.08.2021:-
            “The allegations, as have been made by the complainant, are of
            serious nature and may have grave implications. This Commission
G           is a lawfully created tribunal in order to adjudicate upon the issues
            relating to consumer disputes and arrive at just conclusions.
            Anybody and everybody who feels aggrieved and for whom
            redress may be provided under the Act can approach this
            Commission invoking its jurisdiction as provided by law. Free access
            and unfettered right to approach, as permissible by law, is inbuilt
H
  L & T FINANCE LTD. v. PRAMOD KUMAR RANA & ANR.                                 951
                   [M. R. SHAH, J.]

       in the system where rule of law prevails. Any attempt to impede           A
       such a course, not to speak of exercising coercion against anybody,
       cannot be rightly taken or be countenanced with. The matter
       requires explanation forthwith.”
         5.1 As, on the subsequent dates, Shri Dinanath Mohandas
Dubhashi, the Director of the original opposite party No.2 company did           B
not remain present, subsequent orders have been passed dated
03.09.2021 and 16.09.2021 and by the order dated 16.09.2021, bailable
warrants have been issued against him by further directing that he may
be produced before the National Commission on 18.10.2021. However,
it is required to be noted that all throughout the representatives of original
opposite party No.2 company and their counsel remained present before            C
the National Commission. It is true that if the allegations made by the
original complainant recorded in the order dated 26.08.2021 “to pressurize
him and giving threats to enter into settlement” are found to be true, the
same are very serious and can be said to be interfering in the
administration of justice. However, at the same time, the allegations are        D
yet to be considered in detail by the National Commission after giving an
opportunity to the opposite parties. The opposite parties are represented
through their counsel and even through their authorised representatives,
who remained present before the National Commission. It is also required
to be noted that even as per the allegations made by the complainant
recorded in the order dated 26.08.2021, the representatives of the opposite      E
companies gave threats and forced him to enter into settlement and
there were no specific allegations against the Director of original opposite
party No.2 – Shri Dinanath Mohandas Dubhashi. Be that it may, even
the review application against the order dated 26.08.2021 is pending
before the Tribunal. Therefore, in the facts and circumstances of the            F
case, issuance of the bailable warrants against Shri Dinanath Mohandas
Dubhashi, the Director of original opposite party No.2 was not warranted
at this stage. Bailable warrants are to be issued as a last resort and only
in a case where it is found that the opponent parties are not cooperating
at all and that they are avoiding appearance before the National
Commission deliberately and/or they are not represented at all either            G
through their authorised representative or through their counsel. In the
present case, the allegations made by the original complainant recorded
in the order dated 26.08.2021 are yet to be considered in detail by the
National Commission after giving opportunity to both the opposite parties.
The opposite parties are represented through their counsel and the               H
952             SUPREME COURT REPORTS                          [2021] 11 S.C.R.


A     authorised representatives and even the Director of the original opposite
      party No.1 company has always remained present in person before the
      National Commission through video conferencing as directed. Therefore,
      issuance of bailable warrants and the directions issued by the National
      Commission directing Shri Dinanath Mohandas Dubhashi, Director of
      original opposite party No.2 company to be produced, was not warranted
B
      at all at this stage. If at all subsequently, it is found that anybody has
      tried to pressurize the original complainant and pressurized him to enter
      into settlement and any threatening visits were made to the residence of
      the original complainant, further order can be passed by the National
      Commission. It cannot be disputed that free access and unfettered right
C     to approach/justice, as permissible by law, is inbuilt in our judicial system
      where rule of law prevails. Any attempt to impede or obstruct the course
      of justice, not to speak of exercising any coercion against anybody, who
      is before the court or authority in order to seek justice, cannot be lightly
      taken or be countenanced with. However, at the same time, the case of
      the complainant is yet to be adjudicated upon and/or established and
D
      proved and the opportunities are to be given to the opposite parties. It is
      to be noted that as such, appellant has been appearing through their
      counsel and their authorised representatives and even Shri Mukesh
      Aggarwal, Director of original opposite party No.1 has remained present
      in person either through physical mode or though video conferencing.
E             6. In view of the above and for the reasons stated above, the
      orders dated 26.08.2021 and 03.09.2021 directing Shri Dinanath
      Mohandas Dubhashi, Director of the appellant company to personally
      remain present through physical mode or through video conferencing
      and the subsequent order dated 16.09.2021 issuing bailable warrants
F     against him are quashed and set aside. However, as observed
      hereinabove, it will be open for the National Commission to pass further
      order after giving opportunity to both the opposite parties to represent
      their case on the allegations made by the original complainant recorded
      in the order dated 26.08.2021. At this stage, the appellant herein – original
      opposite party No.2 be permitted to be represented through his authorised
G     representatives and through his counsel. However, it will be open for the
      National Commission to require the presence of Shri Dinanath Mohandas
      Dubhashi, Director of the appellant company, if required, in future. It is
      reported that a review application to review or recall the order dated
      26.08.2021 is pending before the National Commission. Therefore, now,
H     the same may be heard, decided and disposed of by the National
  L & T FINANCE LTD. v. PRAMOD KUMAR RANA & ANR.                               953
                   [M. R. SHAH, J.]

Commission in accordance with law and on merits without being in any           A
way influenced by any of the observations made in the present order. It
is also made clear that we have not expressed anything in favour of
either of the parties on the allegations made by the original complainant
recorded in the order dated 26.08.2021.
      Present appeals are allowed to the aforesaid extent only.                B
However, in the facts and circumstances of the case, there shall be no
order as to costs. Pending applications, if any, also stand disposed of.


Devika Gujral                                        Appeals partly allowed.
                                                                               C




                                                                               D




                                                                               E




                                                                               F




                                                                               G




                                                                               H


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