Anil Kumar Mukherjee and Others vs District Consumer Disputes Redressal Forum and Others

Barin Ghosh, J.—A private limited company took certain amount from the private respondent herein. The said private limited company issued cheques in favour of the private respondent of the amount so received. The cheque was dishonoured by non-payment. The private respondent then approached the Consumer Forum to redress his grievances. It is quite surprising that the Consumer Forum entertained the matter. Be that as it may, the Consumer Forum not only proceeded against the private limited company but also against its Shareholders and Directors and passed a composite award against the private limited company as well as against its Shareholders and Directors. The Company Law has not been changed since the pronouncement of Salmon v. Salmon. The Corporate veil cannot be lifted in the manner the Consumer Forum sought to lift. There was no contention that the Directors and the Shareholders of the private limited company are sitting behind the veil of the Corporation for the purpose of defrauding the private respondent. In any event such a case could not be entertained by the Consumer Forum.

This writ petition seeks to challenge that award. As a condition for entertainment of the present writ petition I wanted to ascertain from the petitioners who are admittedly Directors of that company as to whether the company is agreeable to refund the principal amount and if so within what time. A representation was made that the payment of the principal amount would be made to the private respondent. Today the final payment has been made in Court by a Bankers Cheque. The question is what about the interest amount. In the matter of depositing any sum of money, unless authorised by law, any adjudicating authority is not entitled to award any interest. The Consumer Forum has not been authorised to award interest upon the award money. In such view of the matter, the application is allowed. The award is set aside. In the event the private respondent seeks to recover interest, under the Interest Act, 1978, it shall be open to the private respondent to file an appropriate civil suit against the private limited company.

Let urgent xerox certified copy of this order, if applied for, to given be the parties.