SARFAESI Act – Auction Sale – Interim stay by Consumer Forum
The Opposite Party No.1 filed consumer case under Section 35 of the Consumer Protection Act challenging the E-auction of secured assets to be held on 16.12.2023. By the interim order dated 14.12.2023 passed under Section 38(8) of the CP Act, 2019, the District Consumer Commission, Jharsuguda, directing the Petitioner Bank not to proceed with the auction of secured assets under SARFAESI Act, 2002. This was challenged in the writ petition.
HELD that SARFAESI Act, 2002 is a Special Act and a Code in itself and the steps taken in terms of the said Act cannot be called in question in a proceeding under the Consumer Protection Act. The least that can be expected from the learned President and the Members of the District Commissions that before passing any order relating to any alleged violation vis-à-vis the provisions of any Special Act they will test the propositions claiming the reliefs on the touchstone of law governing the field which would enable them not to embark upon a journey which will lead to avoidable litigation and denude the faith of the common man in the fairness and effectiveness of the redressal mechanism and which will also not render otiose, the intent of the legislature in enacting Special Statutes.
Since the Consumer Commission lacked inherent jurisdiction, the High Court is left with no other alternative but to quash entire proceedings and the interim order. This Court cannot be oblivious of the conduct of the opposite Party NO.1 in suppressing material facts relating to pendency of Securitization Application before the Debt Recovery Tribunal, while seeking impugned interim order to that cannot be lightly brushed aside as it clearly appears to be purposeful to serve the mischievous end. Hence, cost of Rs.1,00,000- was imposed and payable to the Welfare Fund of Jharsugda District Bar Association.
An onerous duty has been cast on the President and Members manning the Consumer Commission while considering the reliefs sought under the Special Acts and to act and function within the orbit provided thereunder. The maxim “ignoratia juris no excusat” applies in equal measure to all including the Consumer Commissions.
Judgment dated 1.7.2024 of the Orissa High Court in W.P. (C) No.41680 of 2023 of The Chief Manager – cum – Authorized Officer, Union Bank of India, Jharsuguda Vs. Rajesh Kumar Agrawal and another.
