NEW DELHI: In its recent ruling, the Delhi High Court has upheld consumer commissions’ power to issue arrest warrants under the Consumer Protection Act, 2019 (CP Act), stating that the State Consumer Disputes Redressal Commission (SCDRC) and the National Consumer Disputes Redressal Commission (NCDRC) have judicial powers equivalent to first-class “judicial magistrates” for enforcing compliance with their orders.
Justice Sanjeev Narula, in a detailed judgment, declared the enforcement actions initiated due to VXL Realtors’ failure to comply with an order from the SCDRC, which mandated a refund and compensation to a consumer, were within the commission’s jurisdiction.
“Section 72 of the CP Act makes it abundantly clear that the objective of the provision is to enforce the orders of Consumer Commissions, by holding a company and its officers accountable for defying the directions of the Commissions,” the court stressed.
The case stems from a 2016 complaint filed by a consumer Naveen Kumar Aggarwal, who alleged unfair trade practices and deficiency in services by VXL Realtors related to a real estate deal.
The SCDRC, in one of its orders, had directed VXL Realtors to refund the full amount paid by the complainant, along with interest and compensation for the inconvenience caused.
Despite this, VXL Realtors failed to comply, leading Aggarwal to file an execution petition in 2022, which eventually resulted in arrest warrants being issued against the company’s directors, including Rakesh Khanna.
Khanna, who was appointed director of VXL Realtors in 2020, filed a writ petition seeking to quash the arrest warrants. He contended that since the alleged deficiencies in service occurred between 2010 and 2013—prior to his appointment—he should not be held accountable for the company’s past failings.