National Consumer Disputes Redressal Commission Allows Appeal in Consumer Dispute Against Army Welfare Housing Organization for Non-Compliance of State Commission Order. Refund of ₹56,90,577 with 9% Interest Ordered Due to Failure to Furnish Required Documents.

Tribunals: National Consumer Disputes Redressal Commission Bench: NEW DELHI In Favour of Accused
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Case Note & Summary

The case pertains to a consumer dispute where Lt. Col. Sarfraz Singh (appellant) filed a complaint against Army Welfare Housing Organization & Anr. (respondents) before the State Consumer Disputes Redressal Commission, Punjab. The State Commission, vide order dated 13.06.2022, partly allowed the complaint and directed the respondents to furnish certain documents (Fire Fighting Certificate, Occupancy Certificate, etc.) within 45 days, failing which they were to refund the entire amount of ₹56,90,577, out of which ₹50,56,838 was to be refunded with 9% interest from 01.04.2014 (stipulated possession date) till realization, and ₹6,33,739 with 9% interest from 03.08.2018 till realization. The respondents did not comply within the 45-day period. The appellant filed an execution application before the State Commission, which was dismissed. The appellant then filed an appeal before the National Commission. During the proceedings, the National Commission directed both parties to file calculations. The respondents filed a review application with a delay of 1095 days. The National Commission held that the respondents failed to comply with the order within the stipulated period, thus the condition for refund was triggered. The Commission allowed the appeal, directing the respondents to refund ₹50,56,838 with 9% interest from 01.04.2014 till realization, and ₹6,33,739 with 9% interest from 03.08.2018 till realization, within 8 weeks. The review application was dismissed as no sufficient cause was shown for the delay.

Headnote

A) Consumer Law - Execution of Order - Non-Compliance - Consumer Protection Act, 2019 - Sections 71, 72 - The appellant sought execution of the State Commission's order directing the respondents to furnish documents or refund the amount with interest. The respondents failed to comply within the stipulated period, leading to the order for refund. Held that the respondents are liable to refund the amount with interest at 9% per annum from the stipulated date of possession (01.04.2014) till realization. (Paras 1-8)

B) Consumer Law - Condonation of Delay - Limitation - Consumer Protection Act, 2019 - Section 43 - The review application was filed with a delay of 1095 days. The appellant opposed condonation. The Commission found no sufficient cause for the delay and dismissed the application. Held that the delay cannot be condoned in the absence of reasonable explanation. (Paras 9-10)

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Issue of Consideration

Whether the respondents complied with the State Commission's order dated 13.06.2022 directing them to furnish certain documents within 45 days, failing which they were to refund the amount with interest.

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Final Decision

The appeal is allowed. The respondents are directed to refund ₹50,56,838 with interest at 9% per annum from 01.04.2014 till realization, and ₹6,33,739 with interest at 9% per annum from 03.08.2018 till realization, within 8 weeks. The review application is dismissed.

Law Points

  • Consumer Protection Act
  • 2019
  • Execution Proceedings
  • Refund with Interest
  • Non-Compliance of Order
  • Condonation of Delay
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Case Details

2025 LawText (NCDRC) (01) 49

Appeal Execution No.99 of 2022 with RA/75/2025

2025-07-23

AVM J. Rajendra, AVSM, VSM (Retd.), Presiding Member, Hon'ble Mr. Justice Anoop Kumar Mendiratta, Member

Mr. Paramjit Singh Gorayas (for Appellant), Mr. A.K. Tewari, Mr. Rahul Burman, Col. Rohit Gupta, Capt. Ashwat (for Respondents)

Lt. Col. Sarfraz Singh

Army Welfare Housing Organization & Anr.

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Nature of Litigation

Appeal against dismissal of execution application and review application for condonation of delay.

Remedy Sought

Appellant sought execution of the State Commission's order dated 13.06.2022 directing respondents to furnish documents or refund amount with interest.

Filing Reason

Respondents failed to comply with the State Commission's order within the stipulated 45 days.

Previous Decisions

State Consumer Disputes Redressal Commission, Punjab partly allowed the complaint on 13.06.2022 directing respondents to furnish documents or refund amount with interest. The execution application was dismissed.

Issues

Whether the respondents complied with the State Commission's order dated 13.06.2022 within the stipulated period? Whether the delay in filing the review application should be condoned?

Submissions/Arguments

Appellant argued that respondents failed to furnish documents within 45 days, thus liable to refund with interest. Respondents sought condonation of delay of 1095 days in filing review application, claiming no sufficient cause shown.

Ratio Decidendi

Failure to comply with the conditional order within the stipulated period triggers the refund obligation. The respondents did not furnish the required documents within 45 days, hence they are liable to refund the amount with interest as directed.

Judgment Excerpts

Heard the learned counsel for both the parties and perused the calculation filed on behalf of both the parties in terms of order dated 04.04.2025 passed by this Commission. The factual matrix of the case is that Lt. Col. Sarfraz Singh filed a Consumer Complaint being C.C. No.495 of 2019 against the Army Welfare Housing Organization & Anr. before the State Commission which was partly allowed vide order dated 13.06.2022 with the following directions...

Procedural History

The appellant filed a consumer complaint (C.C. No.495/2019) before the State Consumer Disputes Redressal Commission, Punjab, which was partly allowed on 13.06.2022. The appellant filed an execution application (Ex. No.37/2020) which was dismissed. The appellant then filed an appeal (A.E. No.99/2022) before the National Commission. The respondents filed a review application (RA/75/2025) with a delay of 1095 days. The National Commission heard both matters and passed the final order on 23.07.2025.

Acts & Sections

  • Consumer Protection Act, 2019: 71, 72, 43
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