THIRUVANANTHAPURAM: The State Consumer Disputes Redressal Commission (SCDRC) has sentenced a builder, Ajith Thomas Abraham, to six months of simple imprisonment for failing to fulfil a promise of delivering an apartment.
Ajith, the managing director of Southern Investments, had received Rs 49.68 lakh from the petitioner, Cherukat Vijayakumar, 75, in March 2014, on the assurance of providing an apartment with car parking in “Rain Tree Heights” in Sarovaram, Kozhikode. However, the builder did not complete the project, prompting the consumer to file a complaint with the consumer court. On October 31, 2016, the commission issued an order demanding that the builder deliver the apartment within six months; else, he would have to pay the petitioner Rs 49.68 lakh along with 12 per cent annual interest.
Since the builder failed to adhere to the order, the commission issued an order in the execution petition instructing him to pay Rs 1.13 crore, including compensation and interest. However, the builder contested the order before the National Commission. On June 7, 2022, the National Commission dismissed his appeal and directed him to comply with the state commission’s order.
On July 25, 2023, the commission issued a notice to the builder, giving him 15 days to provide reasons as to why he should not be subjected to imprisonment. His argument was that there were ongoing proceedings with National Company Law Tribunal (NCLT), and the disputed properties were under the liquidator’s custody.
In its final ruling on August 17, the commission rejected the builder’s reliance on NCLT proceedings and Section 13 of the Insolvency and Bankruptcy Code, 2016, as a defence against execution proceedings.
The commission cited a High Court division bench order regarding the builder’s petition against its order, clarifying that the bar on proceedings pertained only to the corporate debtor and that the commission retained the right to execute the order against the managing director. The order was issued by the SCDRC bench comprising judicial member D Ajith Kumar and member K R Radhakrishnan.