Case Note & Summary
The Supreme Court upheld the NCDRC's dismissal of execution applications against directors/promoters of ACIPL, holding that execution must strictly conform to the decree and cannot bind persons not adjudicated in the original complaints. The NCDRC had admitted consumer complaints only against ACIPL, excluding directors/promoters, and this order was never challenged, attaining finality. No liability was determined against directors/promoters in the complaints, and thus execution against them was impermissible. The Court clarified that while moratorium under IBC does not extend to directors/promoters, execution cannot proceed due to lack of decree against them.
Headnote
The Supreme Court dismissed appeals challenging the National Consumer Disputes Redressal Commission (NCDRC) order that refused execution against directors/promoters of M/s. Ansal Crown Infrabuild Pvt. Ltd. (ACIPL) -- The Court held that execution must strictly conform to the decree and cannot bind persons not party to the original adjudication -- The NCDRC had admitted complaints only against ACIPL, excluding directors/promoters, and this order attained finality -- No pleadings, issues, or findings were recorded against the directors/promoters in the complaints -- The moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) shields only the corporate debtor, not directors/promoters, but execution cannot proceed against them due to lack of liability in the decree -- The principle from Rajbir v. Suraj Bhan was cited, emphasizing that executing court cannot go beyond the decree
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Issue of Consideration: Whether persons arrayed as respondents in consumer complaints but against whom no notice was issued and complaints did not proceed could be brought within execution against directors/promoters of judgment-debtor company
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Final Decision
Supreme Court dismissed the appeals, upholding NCDRC's decision that execution cannot proceed against respondents 2 to 9 (directors/promoters) as they were not party to the decree
