Mumbai- Till fairly recently, parties held guilty in consumer forums delayed shelling out compensation by paying only a part or by seeking adjournments. Not anymore. The state consumer commission has, among other measures, precluded payment of compensation in installments to speed up the course of justice.
“Previously, the consumer courts, under section 25 of the Consumer Protection Act (CPA), used to allow the trader time in the adjudication proceeding,” an advocate said. “Also, the parties were allowed the liberty to pay the compensation money in instalments.
“Apart from this, an application under section 27 of the CPA was allowed simultaneously. Back then, advocates used to delay the matter by raising technical issues.”
Since joining as the commission’s president, Justice S B Mhase has passed a number of judgments that give clear-cut guidelines on the procedures to be followed by the district forum and the commission while adjudicating matters under sections 25 and 27.
These judgments make it clear that consumer forums and the commission do not have the right to allow payment of compensation in parts. Instead, their duty is to verify whether the entire amount has been paid, and, if not, whether a “certificate of decreetal” has been issued.
As per section 27, the judgment debtor (trader) can face up to 3 years’ imprisonment for contempt of consumer court if he or she does not cough up the awarded compensation within a specified period.
Both sections 25 and 27 are similar to section 138 of the Negotiable Instruments Act, which gives the complainant the right to file a criminal complaint.
“If the complainant moves an application under section 27 before the commission or the forum, the judgment debtor, who has not paid the compensation, can expect some hard time,” an advocate told .
“He be issued summons and he will have to apply for bail by appearing in person before the commission. The commission or the forum can then rule about his conviction or acquittal,” the advocate added.
Another advocate said, “Dilly-dallying on the issue of paying the compensation has become a costly proposition. The guilty parties, therefore, try to settle the matter by immediately shelling out the amount.”
