Date of Filing:06.11.2024
Date of Disposal:15.05.2024
BEFORE THEKARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)
DATED:15.05.2024
PRESENT
HON’BLE Mr JUSTICE HULUVADI G RAMESH : PRESIDENT
Mrs DIVYASHREE M: LADY MEMBER
APPEAL No.1455/2014
Mr N Manohar Reddy
S/o Mr Ramachandra Reddy
Aged 59 years
312, 3rd Floor, Royal Corner
Richmond Town
Bengaluru-560 027 Appellant
(By Mr V Srinivasan, Advocate)
-Versus-
1. Mr Devendra Narayan Singh
S/o Late Basudeo Prasad Singh
Aged about 48 years
2. Mrs Anupama Kashap
W/o Devendra Narayan Singh
Aged about 43 years
Both are residing at
Flat No.T/501
Block 8, Om Nirmalya Apartments
Nageshwar Colony
Boring Road
Patna-800 001
(By Mr Yasir Ali, Advocate for R1 and R2)
3. M/s Happy Farms and Resorts Pvt. Ltd.,
Happy Valley
Neat Ghati Subramanyam
Ghati Subramanyam Road
Doddaballapur
Bangalore Rural District
By its Managing Director Respondents
(Mr M Mahesh Kumar, Advocate for R3)
:ORDER:
Mr JUSTICE HULUVADI G RAMESH : PRESIDENT
1. This Appeal is filed under Section 27A of Consumer Protection Act 1986 by JDr/OP aggrieved by the Order dated 20.06.2014passed in Execution Petition No.80/2009 on the file of III Additional District Consumer Disputes Redressal Forum, Bengaluru (for short, the District Forum).
2. Heard the arguments of the Learned Counsels on Record. Perused the Impugned Order, Grounds of Appeal and Documents on record.
3. During the course of arguments, the learned Counsel for Appellant & Respondent No.3 submitted their Written Arguments.
4. In this Appeal, Appellant has contended that he was the Director of Respondent No.3 Company; thereafter has retired from the post of Directorship from Respondent No.3 Company on 01.06.1997; he was the Director of the Respondent No.3 in official capacity; has signed the Agreement of sale with the customers on & behalf of Respondent No.3 in his official capacity, prior to his retirement. Due to some mis-understanding with the other Directors of Respondent No.3 Company, the Appellant was forced to retire from the Company; in pursuant to a Memorandum of Understanding dated 01.06.1997 retired from the Company on 01.06.1997 as per Form 32 of the Companies Act, all the liabilities were settled and customers, aware that he is ceased to be one of the Director of Respondent No.3, vide Notice dated 12.04.1998 issued in the Times of India News Paper Publication. The Respondent No.3 is solely responsible for the affairs and administration of the Project and the Appellant has been forced to face the warrant issued in the name of the Respondent No.3, depicting the Appellant as the Managing Director of Respondent No.3. Further contended that, Respondent No.1 & 2 have entered into the Agreement of Sale dated 25.10.1995 with the Respondent No.3 and the Appellant as signed the document in his official capacity, prior to his retirement. The Appellant is in no way related to the entire proceedings and the Warrant being issued by the District Forum on him is without any justification. District Forum failed to note that, no occasion was afforded to the Appellant to justify his contention; failed to appreciate the numerous documents produced to reveal that he was not with the Company and Respondent No.1 and 2/Complainants failed to establish the fact that the Appellant/OP was in-charge of the affairs and management of Respondent No.3, hence, issuing of Warrant on him is arbitrary and without application of mind. Thus, seeks to set aside the issue of Non-bailable Warrant of Arrest dated 20.06.2014 as a non-entity against the Appellant.
5. On perusal of the Order Sheet dated 20.06.2014 of District Forum, same reads as hereunder:
“Called out. Await Notice by 26.06.2014
Later, the J.Dr has filed the application under Section 20 (2) of CPC and has prayed that the NBW be recalled. Copy given. D.Hr is present. Ordered to hear on application by 26.06.2014”.
6. It appears that Complainants had entered into an Agreement of Sale dated 25.10.1995 with the OP for the purchase of Plots No.1062 & 1063, each Plot measuring 10,800 Sq ft, under the Project known as ‘Happy Valley’ situated at No.120 & 97, Jogana Halli, Kelagina Melina Joganahalli, Subramanya Swamy Ghati, (S.S. Ghati) Tubegeri Hobli, Doddaballapur Taluk, Bangalore Rural District for aSale consideration of Rs.1,99,000/- per plot and they paid the initial deposit amount at Rs.23,000/- each and Rs.74,000/- each, respectively to the OP. OP after receipt of payment, failed to respond to the letter of the complainant dated 03.11.1997 and failed to update the developments in the Project. Hence, they lodged the instant Complaint before the District Forum, alleging deficiency in service on the part of OP and seeking directions for Execution of the Absolute Sale Deed in respect of said plots in their favour and for other reliefs. The District Forum after enquiring into the matter, allowed the Complaint and directed the OP to refund Rs.74,000/-each to the Complainants along with interest at 18% p.a right from the date of respective payment on the respective amount till refund. The OP shall further pay a sum of Rs.50,000/- each to the complainant by way of compensation for the agony, sufferance and deprivation of the site. OPs shall also pay Rs.5,000/- to the complainants towards cost o the litigation etc., Inspite of receipt of the Order and when the OP has not complied with the Order of the District Forum, Complainants initiated the proceedings against the Jdr/OP in EP No.80/2009 and on 26.02.2010, the District Forum Ordered to issue NBW against the JDr for non-compliance.
7. Further, on perusal of the order passed in OS No.26781/2007 on the file of XXVIII Additional City Civil Judge, Bengaluru, it is observed that the Appellant herein, Mr. N. Manohar Reddy & his Wife Mrs Sarada Reddy and Happy Home Construction Pvt. Ltd., represented by its Managing Director,Mr N Manohar Reddy has filed said suit against M/s Happy Farms and Resorts Pvt. Ltd., Happy Valyee, represented by Managing Director, Penchaliah, Mrs Usha Reddy W/o Ramana Reddy, Mr P V Ragava Reddy and Mr Ramana Reddy claiming permanent mandatory injunction directing the Defendant Company to remove the name of the Plaintiff No.1 in the case filed against the Defendant Company. The City Civil judge after enquiring into the matter, Dismissed the Suit with no order as to costs on the ground that, in the absence of any pleadings or the evidence produced by the Plaintiff, the plaintiff not entitled for relief of mandatory injunction restraining the Defendants from interfering with the affairs of the Plaintiffs and administration of the Company.
8. On perusal of the documents on record, viz., Memorandum of Understanding dated 01.06.1997, it is seen Appellant is a life time Director of M/s Happy Farms and Resorts Pvt. Ltd., Further, the contention of the Appellant that, as per Form 32 of the Companies Act, he had retired from the Company on 01.06.1997. However, as long as he was Director of the said Company as per MoU dated 01.06.1997,t he Form 32 becomes ineffective, inoperative and in as much as the Company was registered under Registrar of Companies Act and the appropriate Certificate was to be issued only by the Authority concerned.
9. Similarly, on perusal of Memorandum of Association of M/s Happy Farms & Resorts Pvt. Ltd., dated 09.09.1993, wherein, in clause V, states that the Authorised share Capital of the Company is Rs.25,00,000/- divided into 25,000 Equity Shares of Rs.100/- each, out of which, Sri Manohar Reddy has taken 9 shares. Further, in the Articles of Association of Happy Farms & Resorts Pvt. Ltd., Clause 6 (ii) states that ‘The First Directors of the Company shall be the persons mentioned hereunder, viz., a) Mr N Manohar Reddy b) Mr G Ravindra Reddy c) Mrs N Usha Reddy d) Mr D Rama Veera Sai. Further, Mr N Manohar Reddy, Chairman & Managing Director has signed the Statement of Assessable income for the Assessment year 1996-97. The copy of the News Paper publication in Times of India dated 12.04.1998, produced by the Appellant, it is seen that he is ceased to be one of the Directors of the Respondent No.3, which goes to prove that same he has not produced any cogent evidence to accept the same that all the liabilities were settled and customers are aware of the same. Thus, all these documents discloses that he is held responsible as one of the Director of the company and he cannot escape from his liability as he was outgoing Director of the Company and other Directors only are responsible. The facts remains that, as long as he was Director of the Company, he has to discharge his liability and outstanding dues, if any of the Company. It is abundantly clear that this Appellant cannot take shelter under any of his submission in as much as his entity viz., M/s Happy Farms & Resorts Pvt. Ltd., is a Registered Firm and the competent authority has not discharged him from his registered and accepted portfolio, hence, he is held liable for the claims preferred against him. Under the circumstances, issue of NBW against him by the District Forum is just & proper and there are no grounds to interfere with the same.
10. In view of the forgoing observations, Appeal stands dismissed
11. Send a copy of this Order to the District Commission as well as to the parties concerned, immediately.
Lady Member President
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