Supreme Court unconvinced by NCDRC members' explanation for flouting court order

The Supreme Court on Wednesday was left unimpressed by the explanation given by two members of the National Consumer Disputes Redressal Commission (NCDRC) as to why they flouted an interim order by the top court to not take any coercive action against a realty company [Ireo Grace Realtech Pvt Ltd vs Sanjay Gopinath]..Pertinently, the two NCDRC members had earlier been directed to explain why they had issued non-bailable warrants against the company's directors, despite an interim order by the top court not to take any coercive action against the company. A Bench of Justices Hima Kohli and Ahsanuddin Amanullah on April 24 was not unconvinced by the NCDRC members' explanation that they were not aware of the Supreme Court's interim order.The Bench observed that the NCDRC order of March 8 (in which the warrants were issued) itself acknowledged the passage of the Supreme Court's March 1 interim order. "We have expressed our reservations on the explanation sought to be offered inasmuch as, the said explanation runs contrary to the order passed by the NCDRC ... even after recording that the order passed by this Court has been brought to its notice, the NCDRC proceeded to direct the appellant herein to file an affidavit of compliance with regard to the execution of decree. In our view, this direction itself is unacceptable and flies in the face of the order passed by this Court on 01st March, 2024," the Supreme Court said in its April 24 order..The case before the Court was rooted in consumer complaints filed by homebuyers who were aggrieved by the failure/ delay in handing over possession of flats in Gurugram's 'The Corridor' housing project.After the homebuyers secured orders of compensation from the NCDRC, various execution proceedings were initiated by them before the national consumer form against the project developer, Ireo Grace.The project developer (Ireo Grace) then approached the Supreme Court with civil appeals challenging such an award of compensation..On March 1, the Supreme Court gave interim protection to Ireo Grace while issuing notice on the civil appeals. By this interim order, the Court restrained the NCDRC from taking any coercive steps against Ireo Grace.However, in one of the several execution proceedings initiated by homebuyers, a two-member Bench of the NCDRC passed an order on April 2, 2024, issuing non-bailable warrants against the directors of Ireo Grace after the company failed to file certain compliance affidavits..When the Supreme Court was appraised of this development, the NCDRC members who passed the order - namely, Subhash Chandra (presiding member) and Dr. Sadhna Shanker - were asked to submit an explanation. Representing the NCDRC members, Attorney General (AG) R Venkataramani told the Supreme Court that the lapse on the part of the members was inadvertent and unintentional.The NCDRC members also filed an affidavit containing an apology, which further stated that the consumer forum members were unaware of the Supreme Court's March 1 order. However, this was contested by Ireo Grace, which contended that the NCDRC members cannot feign ignorance of the Supreme Court's interim order. The Court found some force in this stance. "A bare perusal of the aforesaid order passed by the NCDRC on 08th March, 2024 itself demonstrates that counsel for the appellant herein (Judgement Debtor) had handed over a copy of the order passed by this Court on 01st March, 2024. It is implausible to accept the explanation offered now that the aforesaid order passed by this Court was not brought to the notice of the NCDRC," the Court said. .The Court eventually adjourned the matter till May 3."At the request of learned Attorney General, list on 03rd May, 2024, on top of the Board," the Court said..Senior Advocate Ranjit Kumar with advocates Abhimanyu Bhandari, Rooh-e-hina Dua, Dhanakshi Gandhi, and Ruchi appeared for Ireo Grace.Advocates Deepak Kumar Khushlani, Santosh Kumar Pandey, Chritarth Palli, Abhay Kumar, and Shagun Ruhil appeared for the legal heirs of a now-deceased homebuyer.[Read order]