In a significant ruling, the Delhi High Court has fortified the authority of consumer commissions, empowering them to issue arrest warrants under the Consumer Protection Act. Justice Sanjeev Narula confirmed that these commissions hold judicial powers akin to a first-class magistrate, making arrest warrants a potent tool for ensuring compliance with their directives.
This ruling came after a petition by Rakesh Khanna, a former director of VXL Realtors Pvt. Ltd, who challenged the arrest warrants issued against him. The case arose from a complaint by Naveen Kumar Aggarwal, who accused the company of deficient services and unfair trade practices. Despite Khanna’s resignation, the court ruled that his tenure as director during the period of non-compliance made him liable.
Khanna argued that the arrest warrants were arbitrary and issued without following proper legal procedure, asserting that his resignation shielded him from responsibility. However, the court rejected this defense, stating that all company officials at the time of non-compliance share accountability.
“The Consumer Protection Act clearly places responsibility on those in charge during periods of non-compliance. The commission’s powers include the ability to issue arrest warrants under its judicial authority, which mirrors that of a magistrate,” the court clarified.
By upholding the State Consumer Commission’s jurisdiction and its use of arrest warrants, this ruling signals a strong stance on enforcing consumer rights and holding corporate officials accountable for disregarding legal orders.
