Consumer Forum Overreach – Bombay HC Says Not So Fast
Judgment dated of the High Court of Bombay, Nagpur Bench, Nagpur, in Criminal Writ Petition No.41 of 2025 of SREI Equipment Finance Limited Vs. Rajesh Bajirao Khandewar and others
On 26.10.2021, the respondent no.1 filed consumer complaint against the respondent nos.2 and 3 on the ground that the petitioner NBFC had illegally repossessed his JCB machine for non-payment of instalments. The petitioner company was not made a party to the said consumer complaint.
By the order dated 20.7.2022, the consumer forum allowed the complaint and directed the respondent nos.2 and 3 to return the JCB Machine, on payment of dues.
On 19.6.2024, the Consumer Forum issued bailable warrants.
The petitioner company challenged the said order on the ground that it was passed after moratorium imposed on 8.10.02021 and during CIRP under the IBC. New management has taken over the affairs of the company.
HELD that the petitioner company was not a party to the consumer complaint, the order of consumer forum was passed after the moratorium was imposed on 8.10.2021 prior to fling of the complaint and during CIRP under the IBC. Moreover, new management has taken over the affairs of the company as per the Resolution Plan. As a result, further recovery proceedings initiated in 2023 are also not maintainable against the petitioner Company, its employees and members of new management. Thus, the warrants issued by the Consumer Forum are also bad in law.
