In a later ruling on September 25, 2024, the Delhi High Court rejected a request recorded by Rakesh Khanna, a executive of VXL Realtors Pvt. Ltd., seeking to suppress arrest warrants issued against him by the State Consumer Disputes Redressal Commission (SCDRC). The warrants were related to non-compliance with an prior arrange passed by the SCDRC, which had coordinated VXL Realtors to discount the sum paid by a complainant, Naveen Kumar Aggarwal, at the side intrigued, recompense, and case costs.
The High Court, managed over by Justice Sanjeev Narula, maintained the arrest warrants, dismissing Khanna's supplication. The solicitor had contended that he was named as a director after the occasions that driven to the complaint and, thus, ought to not be held by and by at risk for the company's disappointment to comply with the order. Khanna moreover claimed that due to his restorative condition, he was not included within the day-to-day issues of the company amid the execution procedures.
However, the Court decided that Khanna was in charge of making sure the SCDRC's ruling was followed because he was a director at the time of the execution procedures. The Court stressed that Khanna's duty to uphold the ruling made by the consumer forum was the crucial question, not whether he was complicit in the initial misconduct.
The Court stated:
“The question here is not about past wrongs; it is about the present failure to comply with a legally binding order. The CP Act is explicit: those in charge of a company at the time of non-compliance are accountable.”
Moreover, the High Court pointed out that beneath Section 72 of the Consumer Protection Act, 2019, executives can be held responsible for non-compliance with orders passed by consumer forums, in any case of whether they were dependable for the company's operations at the time of the initial complaint.
This administering strengthens the significance of compliance with consumer forum orders and highlights the individual responsibility of company chiefs in guaranteeing such compliance, indeed in the event that they were not specifically included within the unique act of wrongdoing.
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TAGS: Delhi High Court arrest warrants Consumer Protection Act VXL Realtors Rakesh Khanna SCDRC non-compliance consumer case.
