Supreme Court Issues Contempt Notice To Two NCDRC Members For Issuing Warrants Ignoring SC's Stay Order

The Supreme Court on Friday (May 3) issued contempt notice to two members of the National Consumer Dispute Redressal Commission (NCDRC) for issuing non-bailable warrants ignoring an interim order passed by the Supreme Court.

Earlier, the Court had sought an explanation from the members. Unconvinced with their explanation, a bench comprising Justices Hima Kohli and Ahsanuddin Amanullah asked them to show cause why contempt of court proceedings should not be initiated against them.

The Court noted that even after it issued the notice to the NCDRC members on April 15, the NCDRC members did not recall the non-bailalbe warrants.

"Given the aforesaid position, it is appropriate to issue show cause notice in the name of the members of the NCDRC to show cause as to why contempt of court proceedings ought not to be initiated for wilful defiance of the orders passed by this Court," the bench observed in the order. The replies should be submitted within ten days.

The matter will be next heard on May 15, 2024.

On March 1, the court had ordered that no coercive steps would be taken against the appellant/developer. However, on March 8, the NCDRC asked the directors of the appellant/developer to file affidavits of compliance. Later, on April 2, the NCDRC issued non-bailable warrants against the directors after the appellant failed to file certain compliance affidavits

Earlier, the court had sought an explanation from the NCDRC members Subhash Chandra and Dr. Sadhna Shanker, however, the court expressed its reservation on the explanation offered by them.

When the matter was called for hearing today, the court was not convinced by the explanation offered by the erring members of NCDRC who were represented by the Attorney General for India (“AG”) Mr. R. Venkataramani. Senior Advocate Ranjit Kumar appeared for the appellant/developer.

“In deference to you appearing, we are asking you point blank? Are you pressing the affidavit you filed? Yes or no. There will be deep penal consequences, we find it to be defying ... You have to be careful about what you (NCDRC members) sign!”, Justice Amanullah said.  

Accepting the fault, AG submitted that the mistake was not deliberate. He also tendered an unconditional apology for the mistake made by the members.

"I sincerely and unconditionally apologise (on behalf of the members) ... Please do not comprehend anything as being deliberate. May be I failed to convey," the AG said.

The court criticized the inaction of the erring members for not withdrawing the order issuing non-bailable warrants against the developer directors despite the Supreme Court's order.

"Why they (erring members) did not withdraw their order? We had tied their hands but they flouted our order!", Justice Kohli remarked.

"They should have recalled the order immediately. Don't be hyper-technical ... They should have withdrawn without discussing next dates ... They acted defiantly.", Justice Amanullah added.

Justice Amanullah termed the incident "a mockery of the court."

However, AG suggested that the members should be provided with another opportunity for explanation.

Being present in the court, the members explained that they were under the impression that they could not withdraw their order once it had been passed.

Unimpressed with their explanation, Justice Kohli raised the issue of the personal liberty of the directors of the appellant if the non-bailable warrants were executed.

"Why not? we are talking of life and liberty here. They would have been behind bars if (the NBWs were) executed! What about that?", Justice Kohli replied.

Echoing in the same voice, Justice Amanullah added "How do you refuse to comply state in one breath? You are throwing a challenge in the face of the Supreme Court after noting our order."

Last year, the Supreme Court had initiated contempt proceedings against NCLAT members who passed an order defying a Supreme Court direction. The proceedings were later closed after the NCLAT judicial member resigned.

 Case : Ireo Grace Realtech Pvt Ltd vs Sanjay Gopinath, C.A. No. 2764-2771/2022