GAURAV CHAKRABORTY & ANR. vs M/S. SOVEREIGN DEVELOPERS AND INFRASTRUCTURE LTD.

Notice in this Appeal has been served on the Respondent Company. However, it remains unrepresented. Accordingly, we have heard learned Counsel for the Appellants.

Challenge in this Appeal, by the Decree Holders, is to the order dated 30.03.2017, passed by the Karnataka State Consumer Disputes Redressal Commission at Bangaluru (for short "the State Commission") in E.P. No. 5/2016. By the impugned order, while observing that since the Judgment Debtors were duly represented by their Counsel and that the order, attaching the assets of the Respondent Company, would hinder the normal functioning of the Company, the State Commission has recalled its order, issuing non-bailable warrants against the Directors of the Respondent Company, and has also lifted the attachment order.

Having heard learned Counsel for the Appellants and perused the order dated 27.02.2017, which has been recalled by the order impugned in this Appeal, and bearing in mind the fact that out of the total amount, which is to the tune of approximately Rs.40,00,000/-, only a sum of approximately Rs.16,00,000/- has been paid by the Judgment Debtors to the Decree Holders, we are of the opinion that the State Commission erred in lifting the attachment order in respect of the assets of the Respondent Company. It is also pertinent to note that when the correctness and legality of the main order had been questioned by the Respondent before this Commission, as a pre-condition for grant of interim stay of the order impugned in that Appeal, vide order dated 18.10.2016, the Respondent was directed to deposit in this Commission the principal amount, deposited by the Complainants, along with interest @ 9% p.a., which it was willing to refund to the Complainants as far back as in the year 2014, but the Respondent failed had to comply with the said order.

Having regard to the afore-noted facts and the contumacious conduct of the Respondent, we allow this Appeal; set aside the impugned order; and restore the order passed by the State Commission on 27.02.2017.

It is pointed out that the Execution Petition is now coming up for consideration before the State Commission on 03.10.2017. We are confident that the State Commission will take a final decision in the said Petition to ensure that its final order is taken to a logical end as expeditiously as possible. The Appeal stands disposed of in the above terms. No costs.