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H.K. Singla v. Avtar Singh Saini & Ors.

Civil Appeal · 2018 INSC 1209Decided 14 Dec 2018
Civil Appeal No. 11969 of 2018
Justice Uday Umesh Lalit · Justice R. Subhash Reddy

Background

This is an interim order, not a final judgment. The secretary of a cooperative credit society, since liquidated, was sentenced to two years' imprisonment under Section 27 of the Consumer Protection Act for the society's failure to pay a depositor.

Decision Breakdown

This is an interim order, not a final judgment. The Court observed, only prima facie, that imprisoning him personally seemed doubtful since the order was against the society. It recorded no finding because an appeal was pending before the State Commission, and suspended the imprisonment until that appeal is decided.

Lesson Learnt

There is no final ruling yet on whether an office-bearer can be jailed for a society's default.

Official source (sci.gov.in)View Judgment (PDF)

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