Bombay High Court Quashes Conviction in Consumer Protection Act Penalty Case for Violation of Summary Trial Procedure. Failure to Record Plea and Conduct Trial as Per Sections 254 and 262 CrPC Renders Proceedings Void.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Suhas Ratnakar Morey, was convicted by the Maharashtra State Consumer Disputes Redressal Commission (State Commission) under Section 27(1) of the Consumer Protection Act, 1986, for non-compliance of an order passed by the District Consumer Forum. The State Commission imposed a sentence of simple imprisonment for three months and a fine of Rs. 5,000. The petitioner challenged this conviction before the Bombay High Court, Nagpur Bench, primarily on the ground that the State Commission had not followed the proper procedure for trial of offences under Section 27 of the Act. The High Court examined the provisions of Section 27 of the Consumer Protection Act, 1986, which confers upon the State Commission the powers of a Judicial Magistrate First Class for trial of offences under the Act, and mandates that such offences be tried summarily. The court noted that under Section 27(2) and (3), the State Commission is deemed to be a Judicial Magistrate First Class for the purposes of the Code of Criminal Procedure, 1973 (CrPC), and all offences under the Act are to be tried summarily. The High Court observed that the summary trial procedure under Chapter XXI of CrPC, specifically Sections 260 and 262, requires the Magistrate to follow the procedure for trial of summons cases under Chapter XX, except as otherwise provided. Section 254 of CrPC, which applies to summons cases, mandates that if the accused does not plead guilty, the Magistrate shall proceed to hear the prosecution and take all evidence produced in support of the prosecution, and also hear the accused and take all evidence produced in defence. The High Court found that the State Commission had not followed this procedure. The record did not show that the plea of the petitioner was recorded, nor was he given an opportunity to lead defence evidence. The State Commission had straight away passed the order of conviction based on affidavits and documents, without complying with the mandatory requirements of Section 254 CrPC. The High Court held that this was a serious procedural irregularity that vitiated the conviction. Consequently, the High Court allowed the writ petition, quashed and set aside the impugned order of conviction and sentence passed by the State Commission, and remanded the matter back to the State Commission for fresh adjudication in accordance with law, after following the proper procedure. The court directed the State Commission to afford the petitioner an opportunity to lead evidence in defence and to decide the matter afresh.

Headnote

A) Criminal Procedure - Summary Trial - Consumer Protection Act - Section 27(1) Consumer Protection Act, 1986 read with Sections 260, 262, 254 CrPC - The State Commission, while trying an offence under Section 27(1) of the Consumer Protection Act, 1986, is deemed to be a Judicial Magistrate First Class and must follow the summary trial procedure under Chapter XXI of CrPC. The procedure requires that if the accused does not plead guilty, the Magistrate must proceed to hear the prosecution and take evidence, and also hear the accused and take his defence evidence under Section 254 CrPC. Failure to do so vitiates the conviction. (Paras 2-5)

B) Consumer Law - Penalty Proceedings - Natural Justice - Section 27 Consumer Protection Act, 1986 - The State Commission cannot convict a person for non-compliance of its order without first recording the plea of the accused and giving him an opportunity to lead evidence in defence. The summary procedure under Section 260 CrPC read with Section 262 CrPC mandates that the procedure for summons cases be followed, which includes the mandatory hearing under Section 254 CrPC. (Paras 3-5)

C) Criminal Procedure - Summons Case - Section 254 CrPC - In a summons case, if the accused does not plead guilty, the Magistrate shall proceed to hear the prosecution and take all evidence produced in support of the prosecution, and also hear the accused and take all evidence produced in defence. This requirement is mandatory and cannot be dispensed with even in summary trials under Section 260 CrPC, as Section 262(1) CrPC incorporates the procedure for summons cases. (Para 3)

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Issue of Consideration

Whether the State Consumer Disputes Redressal Commission, while trying an offence under Section 27(1) of the Consumer Protection Act, 1986, can convict the accused without following the summary trial procedure under Sections 260, 262 and 254 of the Code of Criminal Procedure, 1973, particularly without recording the plea of the accused and giving him an opportunity to lead defence evidence.

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Final Decision

The High Court allowed the writ petition, quashed and set aside the impugned order of conviction and sentence passed by the State Consumer Disputes Redressal Commission, and remanded the matter back to the State Commission for fresh adjudication in accordance with law, after affording the petitioner an opportunity to lead evidence in defence and following the proper procedure.

Law Points

  • Summary trial procedure
  • Consumer Protection Act penalty
  • Section 27 Consumer Protection Act 1986
  • Section 254 CrPC
  • Section 262 CrPC
  • Section 260 CrPC
  • natural justice
  • right to be heard
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Case Details

2022 LawText (BOM) (04) 130

Criminal Writ Petition No. 113 of 2022

2022-04-26

Avinash G. Gharote

Mr. Akshay A. Naik for the Petitioner, Mr. Mayukh M. Awode for the Respondent

Suhas Ratnakar Morey

Dhanraj Tulshiram Khaparde

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Nature of Litigation

Criminal writ petition challenging conviction under Section 27(1) of the Consumer Protection Act, 1986 for non-compliance of order of District Consumer Forum.

Remedy Sought

Petitioner sought quashing of the order of conviction and sentence passed by the State Consumer Disputes Redressal Commission.

Filing Reason

The State Commission convicted the petitioner without following the summary trial procedure under the Code of Criminal Procedure, 1973, particularly without recording his plea and giving him an opportunity to lead defence evidence.

Previous Decisions

The State Consumer Disputes Redressal Commission convicted the petitioner under Section 27(1) of the Consumer Protection Act, 1986 and sentenced him to simple imprisonment for three months and a fine of Rs. 5,000.

Issues

Whether the State Commission followed the mandatory summary trial procedure under Sections 260, 262 and 254 of the Code of Criminal Procedure, 1973 while convicting the petitioner under Section 27(1) of the Consumer Protection Act, 1986. Whether the conviction is vitiated due to non-compliance of the procedure requiring recording of plea and opportunity to lead defence evidence.

Submissions/Arguments

Petitioner argued that the State Commission, being deemed a Judicial Magistrate First Class, was required to try the offence summarily under Section 260 CrPC read with Section 262 CrPC, which mandates following the procedure for summons cases under Chapter XX CrPC, including Section 254 CrPC which requires hearing the accused and taking defence evidence if he does not plead guilty. Petitioner contended that the State Commission straight away passed the conviction order without recording his plea or giving him an opportunity to lead evidence in defence, violating the mandatory procedure. Respondent's arguments are not recorded in the judgment.

Ratio Decidendi

The State Commission, while trying an offence under Section 27(1) of the Consumer Protection Act, 1986, is deemed to be a Judicial Magistrate First Class and must follow the summary trial procedure under Chapter XXI of the Code of Criminal Procedure, 1973. Section 262(1) CrPC directs that the procedure for trial of summons cases under Chapter XX shall be followed in summary trials. Section 254 CrPC mandates that if the accused does not plead guilty, the Magistrate shall proceed to hear the prosecution and take all evidence produced in support of the prosecution, and also hear the accused and take all evidence produced in defence. Failure to follow this mandatory procedure vitiates the conviction.

Judgment Excerpts

In a case of a penalty under Section 27(1) of the Consumer Protection Act, 1986, as the State Commission under Section 27(2) of the said Act has been conferred with the power of a Judicial Magistrate, First Class for trial of offence under the said Act, and the State Commission shall be deemed to be a Judicial Magistrate, First Class for the purpose of the Cr.P.C., by virtue of Section 27(3) of the said Act, all offences under the said Act of 1986, are to be tried summarily. This requirement of Section 254(1) of Cr.P.C. has not been followed by the learned State Commission while deciding an offence under Section 27(1) of the Consumer Protection Act and straight away an order of conviction has been passed, which is not permissible in law. The impugned order dated 24/12/2021 passed by the learned State Consumer Disputes Redressal Commission, Maharashtra State, Circuit Bench at Nagpur in Consumer Complaint No. CC/18/201 is quashed and set aside. The matter is remanded back to the learned State Commission for fresh adjudication in accordance with law, after affording an opportunity to the petitioner to lead evidence in defence.

Procedural History

The petitioner was convicted by the State Consumer Disputes Redressal Commission, Maharashtra State, Circuit Bench at Nagpur, vide order dated 24/12/2021 in Consumer Complaint No. CC/18/201, under Section 27(1) of the Consumer Protection Act, 1986, and sentenced to simple imprisonment for three months and a fine of Rs. 5,000. The petitioner challenged this order before the Bombay High Court, Nagpur Bench, by filing Criminal Writ Petition No. 113 of 2022. The High Court issued notice on 23/02/2022 and finally heard the matter on 26/04/2022, allowing the petition and remanding the case.

Acts & Sections

  • Consumer Protection Act, 1986: 27(1), 27(2), 27(3)
  • Code of Criminal Procedure, 1973: 254, 260, 262
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