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Tuesday, May 7, 2019

whether a Revision Petition under Section 21(b) of the Consumer Protection Act, 1986 (herein after referred to as “the 1986 Act”) is maintainable before the National Commission Dispute Redressal Commission (herein after referred to as “National Commission”) against an Order passed by the State Commission in an execution proceeding. = The National Commission erroneously allowed the Revision Petition u/S. 21(b) which was not maintainable. Furthermore, the National Commission modified the decree passed by this Court vide Order dated 19.11.2012 wherein this Court had directed the Board to pay Interest @ 18% p.a. on the principal amount of Rs. 2,67,750/­ (which included an amount of Rs. 3,937 which had been initially deducted by the Board). The National Commission has awarded Interest on the amount of Rs. 3,937/­ twice, by first including it in the principal amount of Rs. 2,67,750/­; and thereafter awarding Interest @ 18% on the same amount of Rs. 3,937/­, which would amount to a double payment.

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.4631 OF 2019
(Arising out of SLP (Civil) No. 6276 of 2019)
Karnataka Housing Board                    …Appellant
versus
K. A. Nagamani                …Respondent
J U D G M E N T
INDU MALHOTRA, J.
Leave granted.
1. The present Civil Appeal arises out of execution proceedings
initiated   by   the   Respondent   –   Complainant   from   an   Order
passed by the State Commission in a consumer dispute. The
issue which has arisen for consideration is whether a Revision
Petition under Section 21(b) of the Consumer Protection Act,
1986   (herein   after   referred   to   as   “the   1986   Act”)   is
maintainable   before   the   National   Commission   Dispute
Redressal Commission (herein after referred to as “National
1
Commission”)   against   an   Order   passed   by   the   State
Commission in an execution proceeding.
2. The factual matrix in which the present jurisdictional issue
has been raised, is as follows:
2.1. The Respondent – Complainant applied for allotment of a
HIG­B Flat under the Self­Financing Housing Scheme at
Kengeri, Bangalore. The Appellant – Karnataka Housing
Board (hereinafter referred to as “the Board”)  vide  letter
dated 25.03.1992 allotted Flat No. 116, Type B on the First
Floor to the Respondent – Complainant. The Board issued
a Provisional Allotment letter dated 23.04.1992 informing
the Respondent – Complainant that the cost of the flat was
Rs. 3,15,000 which was to be paid in the instalments as
specified.
It   is   an   admitted   position   that   the   Respondent   –
Complainant deposited a total amount of Rs. 2,67,750 in
four instalments.
2.2. The   Board   issued   letter   dated   24.06.1995   whereby   the
Respondent – Complainant was allotted another flat,  in
lieu  of the earlier flat for which the provisional allotment
had   been   made.   The   Respondent   –   Complainant   was
informed that the cost of the flat was Rs. 5,90,000. Since
the Respondent – Complainant was not willing to pay the
2
final cost demanded by the Board, she sought a refund of
the amount deposited by her.
2.3. The   Board   refunded   the   amount   of   Rs.   2,63,813   after
deducting   Rs.   3,937   deposited   by   the   Respondent   –
Complainant.
2.4. The Respondent – Complainant made a representation to
the Board demanding refund of the amount deducted, and
also Interest @ 27% p.a. on the entire amount deposited
from the date of payment of each instalment, till the date
of refund.
The Board however refused to accept the demand of
the Respondent – Complainant.
2.5. The   Respondent   –   Complainant   filed   a   Consumer
Complaint alleging deficiency of service under Section 2(1)
(c)(iii)   of   the   1986   Act   before   the   District   Consumer
Disputes   Redressal   Forum,   Bangalore,   and   prayed   for
compensation.
The   District   Forum  vide  Order   dated   21.12.2006
allowed the Complaint, and directed payment of Interest @
12% p.a. on the amount deposited being Rs. 2,67,750 from
the date of deposit of the respective instalments, till the
date of realization. The Board was also directed to refund
the amount of Rs. 3,937 to the Respondent – Complainant.
3
It was directed that the amounts be paid within 45 days
from the date of the Order.
2.6. Being dissatisfied with the compensation awarded by the
District   Forum  vide  Order   dated   21.12.2006,   the
Respondent – Complainant preferred Appeal No. 166 of
2007   before   the   Karnataka   State   Consumer   Disputes
Redressal Commission, Bangalore.
The State Commission  vide  Order dated 06.02.2007
dismissed the Appeal of the Respondent – Complainant.
2.7. The Respondent – Complainant filed Revision Petition No.
1839 of 2007 before the National Commission.
The National Commission vide Order dated 04.08.2011
dismissed  the  Revision  Petition   and  affirmed the   Order
passed by the District Forum.
2.8. The Respondent – Complainant filed SLP (Civil) No. 35226
– 35227 of 2011 before this Court, which was allowed, and
the  Order passed by  the National  Commission  was set
aside. This   Court  vide  Judgment   and   Order   dated
19.09.2012 directed the Appellant – Board to pay Interest
@ 18% p.a. on the amount deposited being Rs. 2,67,750
from the date of deposit till the date of realization; refund
the amount of Rs. 3,937 which had been deducted by the
4
Board;   pay   Rs.   50,000   towards   compensation   for
deficiency   in   service,   and   Rs.   20,000   towards   Costs   of
litigation to the Respondent – Complainant. The operative
part   of   the   Order   is   set­out   herein   below   for   ready
reference :
“For the reasons aforesaid, we allow the appeals
and pass the following order:­
(i) The respondent is directed to pay the appellantcomplainant interest at the rate of 18% per annum
on Rs.2,67,750/­ from date of its respective deposit
till the date of realization with further direction to
refund the amount of Rs. 3,937/­ to her, as directed
by the Consumer Forum.
(ii) The respondent is directed to pay the appellantcomplainant   further   sum   of   Rs.50,000/­   as
compensation for deficiency in service on their part.
(iii)   The   respondent   is   also   directed   to   pay   the
appellant­complainant   a   sum   of   Rs.20,000/­
towards cost of the litigation incurred by her.”
The ‘consumer dispute’ stood finally adjudicated by this
Court  vide  Judgment and Order dated 19.09.2012 which
conclusively determined the rights and obligations of the
parties.
2.9. The Respondent – Complainant filed Execution Application
No. 2 of 2014 before the District Forum. The Respondent –
Complainant   claimed   payment   of   an   amount   of   Rs.
3,58,749 towards execution of the Order dated 19.09.2012
passed by this Court. Both parties submitted their Memo
of   calculation   before   the   District   Forum.   The   District
5
Forum vide Order dated 16.08.2014 held that the Memo of
calculation filed by the Respondent – Complainant was
partly correct, and directed the Appellant – Board to make
an additional payment of Rs. 1,07,057.
The Board satisfied the Decree by payment of the sum
of Rs. 1,07,057 vide Demand Draft dated 09.09.2014.
2.10. On   22.09.2014,   the   Respondent   –   Complainant   filed
Execution Appeal No. 1238 of 2014 under Section 15 of
the   1986   Act,   challenging   the   Order   dated   16.08.2014
before the State Commission.
The State Commission  vide  Order dated 01.03.2016
allowed the Appeal filed by the Respondent – Complainant,
and set aside the Order dated 16.08.2014 passed by the
District Forum in E.P. No. 2 of 2014. It was directed that
the amount of Rs. 2,67,750 already paid by the Board,
would   be   appropriated   first   towards   the   Interest
component and then towards the principal amount. The
State   Commission   remitted   the   matter   to   the   District
Forum   for   fresh   computation   in   compliance   with   the
Order.
2.11.   Aggrieved   by   the   Order   of   the   State   Commission,   the
Appellant – Board preferred a Revision Petition u/S. 21(b)
6
of the 1986 Act before the National Commission being R.P.
No. 1362 of 2016.
The Respondent – Complainant filed I.A. No. 299 of
2017   to   challenge   the   maintainability   of   the   Revision
Petition filed by the Appellant – Board.
The Revision Petition filed by the Board was allowed
vide  Order   dated   10.02.2017.   The   stand   taken   by   the
Respondent – Complainant was rejected as being devoid of
merit.
2.12. The Respondent – Complainant thereafter preferred M.A.
No. 281 of 2017 for referring I.A. No. 299 of 2017 to a
larger bench; and filed M.A. No. 282 of 2017 for declaring
the Order dated 10.02.2017 to be a nullity.
The National Commission vide Order dated 02.02.2018
rejected   the   applications   filed   by   the   Respondent   –
Complainant. 
2.13.   Being   aggrieved   by   the   Orders   dated   10.02.2017   and
02.02.2018   passed   by   the   National   Commission,   the
Respondent – Complainant filed W.P. (Civil) No. 1746 of
2018 before the Delhi High Court.
The Delhi High Court  vide  the Impugned Judgment
dated   13.11.2018,   set   aside   the   Orders   passed   by   the
National   Commission,   and   held   that   the   National
Commission had no jurisdiction to entertain a Revision
7
Petition against the Order passed in Execution Proceedings
by the State Commission. It was held that the nature of
enforcement proceedings is materially different from the
proceedings for adjudication of the consumer dispute. The
Order passed in an Execution Petition was not amenable
to a challenge before the National Commission in exercise
of its Revisional Jurisdiction.
2.14. Aggrieved by the Order dated 13.11.2018 passed by the
Delhi High Court, the Appellant filed the present Appeal.
3. The learned Counsel for the Appellant submitted that:
3.1. A   Revision   Petition   is   maintainable   before   the   National
Commission   under   Section   21(b)   of   the   1986   Act.   The
revisional   jurisdiction   exercised   by   the   National
Commission   is   wide,   and   intended   to   encompass   all
proceedings before the State Commissions.
3.2. The intent of Section 21(b) is clearly to provide revisional
jurisdiction to the National Commission, over the State
Commission.   The   reference   under   Section   21(b)   is
specifically   to   orders   passed   in   any   consumer   dispute
which is pending before, or has been decided by any State
Commission.
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3.3. The phrase “consumer dispute” under Section 21(b) of the
1986 Act must be understood to mean any dispute which
arises under the 1986 Act.
3.4. Execution proceedings are a continuation of the original
proceedings i.e. the Consumer Complaint.
Reliance in this regard was placed on the judgment of
this   Court   in  Dokku   Bhushayya  v.  Katragadda
Ramakrishnayya & Ors.1
4. On the other hand, the Respondent who appeared in person,
inter alia contended that :
4.1. A Revision Petition is not maintainable under Section 21(b)
of the 1986 Act, against an order of the State Commission
passed in execution proceedings.
4.2. The impugned judgment does not merit interference.
4.3. Section 3 of the Consumer Protection Act, 1986 provides
that the provisions of the Act shall be in addition to, and
not in derogation of the provisions of any other law for the
time being in force. Therefore, the National Commission
cannot go beyond the limitation placed by the CPC. Order
45, Rule 16 of CPC bars revision in execution appeals.
4.4. An execution petition cannot be termed as a continuation
of the ‘consumer dispute’. The definition of a ‘complaint’
and a ‘consumer dispute’ u/S. 2(1)(c) and (e) respectively,
1 (1963) 2 SCR 499.
9
cannot   be   given   a   wide   interpretation   to   encompass
execution proceedings.
4.5. An Order in execution proceedings is not an Order in a
“consumer dispute” pending before the State Commission.
The   “consumer   dispute”   filed   by   the   Respondent   –
Complainant was finally adjudicated by this Court  vide
Judgment and Order dated 19.09.2012.
4.6. In an execution proceeding, the executing forum only has
the jurisdiction ‘to execute’ the order in accordance with
Order XXI CPC.
5. We have heard both the parties and perused the pleadings and
written submissions filed.
6. The issue which arises for our consideration in the present
Appeal is whether a Revision Petition is maintainable before
the National Commission u/S. 21(b) of the 1986 Act against an
Order passed by the State Commission in an appeal arising
out of execution proceedings.
6.1. The right to file a Revision Petition, like an appeal, is a
right conferred by statute.2
  In the absence of a statutory
conferment, there is no inherent right to file a revision.
Section 21 sets out the jurisdiction of the National
Commission which is reproduced hereunder:
“21. Jurisdiction   of   the   National
Commission. — Subject to the other provisions of
2 P.S. Sathappan (Dead) by Lrs. v. Andhra Bank Ltd. and Ors. (2004) 11 SCC 672.
10
this   Act,   the   National   Commission   shall   have
jurisdiction—
(a) to entertain—
(i)  complaints where   the   value   of   the   goods   or
services   and   compensation,   if   any,   claimed
    exceeds rupees     one crore; and
(ii)   appeals against   the   orders   of   any   State
Commission; and
(b)   to   call   for   the   records   and   pass   appropriate
    orders in any consumer dispute which is pending
before   or   has   been   decided   by   any   State
Commission   where   it   appears   to   the   National
Commission   that   such   State   Commission   has
exercised a jurisdiction not vested in it by law, or
has failed to exercise a jurisdiction so vested, or
has   acted   in   the   exercise   of   its   jurisdiction
    illegally or with material irregularity.”
(emphasis supplied)
The National Commission has :
(i) original   jurisdiction   to   entertain   complaints
where the value of goods or services exceeds
rupees one crore;
(ii) jurisdiction to entertain appeals against Orders
of any State Commission; and
(iii) supervisory   jurisdiction   over   any   State
Commission in any “consumer dispute” pending
or   decided   by   a   State   Commission,   which   is
challenged on the ground of lack or excess of
jurisdiction.
6.2. The exercise of revisional jurisdiction u/S. 21(b) by the
National   Commission   is   limited   to   a   consumer   dispute
11
which has been filed before the State Commission3
. The
jurisdiction u/S. 21(b) of the 1986 Act can be exercised by
the   National   Commission   only   in   case   of   a   “consumer
dispute” filed before the State Commission. The National
Commission in exercise of its supervisory jurisdiction u/S.
21(b) is concerned about the correctness or otherwise of
the orders passed by the State Commission in a “consumer
dispute”.
6.3. A Revision Petition has a narrower scope than an ‘appeal’.
In  Dattonpant   Gopalvarao   Devakate  v.  Vithalrao
Maruthirao   Janagaval,
4
  this   Court   discussed   the
distinction between “appellate jurisdiction” and “revisional
jurisdiction” as follows:
“2.   ‘Appeal’   and   ‘revision’   are   expressions   of
common usage in Indian statute and the distinction
between   ‘appellate   jurisdiction’   and   ‘revisional
jurisdiction’ is well known though not well defined.
Ordinarily,   appellate   jurisdiction   involves   a
rehearing, as it were, on law as well as fact and is
invoked by an aggrieved person. Such jurisdiction
may,   however,   be   limited   in   some   way   as,   for
instance has been done in the case of second appeal
under the Code of Civil Procedure, and under some
Rent   Acts   in   some   States.   Ordinarily,   again,
revisional   jurisdiction   is   analogous   to   a   power   of
superintendence and may sometimes be exercised
even   without   its   being   invoked   by   a   party.  The
extent   of   revisional   jurisdiction   is   defined   by   the
statute conferring such jurisdiction. The conferment
of revisional jurisdiction is generally for the purpose
3 Galada Power and Telecommunication Ltd. v. United India Insurance Co. Ltd. & Ors.
(2016) 14 SCC 161.
4 (1975) 2 SCC 246.
12
of   keeping   tribunals   subordinate   to   the   revising
Tribunal   within   the   bounds   of   their   authority   to
make them act according to law, according to the
procedure established by law and according to well
defined principles of justice.”
(emphasis supplied)
6.4. Reference must also be made to the judgment of this Court
in Hindustan Petroleum Corporation Ltd. v. Dilbahar Singh,
5
wherein it was held that :
“…Conceptually,  revisional jurisdiction is a part of
appellate jurisdiction but it is not vice­versa.  Both,
appellate jurisdiction and revisional jurisdiction are
creatures of statutes. No party to the proceeding has
an inherent right of appeal or revision. An appeal is
continuation of suit or original  proceeding, as  the
case may be. The power of the appellate court is coextensive   with   that   of   the   trial   court.   Ordinarily,
appellate   jurisdiction   involves   re­hearing   on   facts
and law but such jurisdiction may be limited by the
statute itself that provides for appellate jurisdiction.
On the other hand, revisional jurisdiction, though, is
a   part   of   appellate   jurisdiction   but   ordinarily   it
cannot be equated with that of a full­fledged appeal.
In other words, revision is not continuation of suit or
of original  proceeding. When the  aid  of  revisional
court   is   invoked   on   the   revisional   side,   it   can
interfere within the permissible parameters provided
in the statute.”
(emphasis supplied)
6.5. Ordinarily, the power of revision can be exercised only
when illegality, irrationality, or impropriety is found in the
decision making process of the fora below.
7. The   revisional   jurisdiction   conferred   on   the   National
Commission   u/S.   21(b)   is   with   respect   to   a   pending   or
disposed of ‘consumer dispute’ before the State Commission.
5 (2014) 9 SCC 78
13
7.1. The consumer dispute, in the present case, had already
been finally adjudicated by this Court vide Judgment and
Order dated 19.09.2012. The second round of litigation
emanated from the execution of the final order passed by
this Court.
7.2. Section 25 of the 1986 Act, provides for the enforcement of
Orders passed by the District Forum, State Commission or
National Commission.
Section 25(3) states :
25.   Enforcement   of   orders   of   the   District
Forum,   the   State   Commission  or  the  National
Commission.
(3) Where any amount is due from any person under
an   order   made   by   a   District   Forum,   State
Commission or the National Commission, as the case
may be, the person entitled to the amount may make
an   application   to   the   District   Forum,   the   State
Commission or the National Commission, as the case
may   be,   and   such   District   Forum   or   the   State
Commission or the National Commission may issue
a certificate for the said amount to the Collector of
the   district   (by   whatever   name   called)   and   the
Collector shall proceed to recover the amount in the
same manner as arrears of land revenue.
An Order passed for enforcement, would not be an
order   in   the   ‘consumer   dispute’   since   it   stands   finally
decided by the appellate forum, which has conclusively
determined the rights and obligations of the parties.
7.3. The nature of execution proceedings is materially different
from   the   nature   of   proceedings   for   adjudication   of   a
14
consumer   complaint.   Execution   proceedings   are
independent proceedings. Orders passed for enforcement
of  the   final  order  in  the  Consumer  dispute,  cannot  be
construed to be orders passed in the ‘consumer dispute’.
7.4. During the course of the hearing, learned Counsel for the
Appellant raised a contention that execution proceedings
are a continuation of the ‘appeal’, and must therefore be
considered to be a continuation of the ‘consumer dispute’.
Reliance in this regard was placed on the decision of
the Bombay High Court in  Satguru Construction Co. Pvt.
Ltd. & Ors. v. Greater Bombay Co­operative Bank Ltd.,
6 and
Raghunath R. Shingate v. Jayant Gajanan Pathak & Ors.,
7
as   well   as   the   Patna   High   Court   in  M/s.   Parshava
Properties   Ltd.  v.  A.K.   Bose,
8 wherein   it   was   held   that
execution proceedings are a continuation of the Suit.
7.5. On the other hand, the Respondent – Complainant has
placed reliance on a Full Bench of the Andhra Pradesh
High Court in  Guntupalli Rama Subbayya  v.  Guntupalli
Rajamma,
9 wherein it was held that :
“Execution   Proceedings,   in   our   view,   cannot   be
regarded as continuation of the suit in the sense in
which the proceedings in appeal are treated.”
(emphasis supplied)
6 2007 (3) MhLJ 843.
7 2011 (6) MhLJ 799.
8 AIR 1979 Pat 308.
9 AIR 1988 AP 226.
15
7.6. A   Full   Bench   of   the   Patna   High   Court   in  Masomat
Narmada   Devi   &   Anr.  v.  Nandan   Singh   &   Ors.,
10 has
similarly   held   that   execution   proceedings   cannot   be
regarded as a continuation of the Suit.
7.7. We affirm the view taken by the Full Bench of the Andhra
Pradesh   High   Court   and   Patna   High   Court.   Execution
proceedings even though they are proceedings in a suit,
cannot be considered to be a continuation of the original
suit. Execution proceedings are separate and independent
proceedings for execution of the decree. The merits of the
claim or dispute, cannot be considered during execution
proceedings. They are independent proceedings initiated
by the decree holder to enforce the decree passed in the
substantive dispute.
7.8. There is no remedy provided under Section 21 to file a
Revision Petition against an Order passed in appeal by the
State Commission in execution proceedings.
Section 21(b) does not provide for filing of a Revision
Petition before the National Commission against an Order
passed by the State Commission in execution proceedings.
7.9. In the present case, the National Commission committed a
jurisdictional error by entertaining the Revision Petition
10 AIR 1987 Pat 33.
16
u/S. 21(b) filed by the Appellant – Board against an appeal
filed   before   the   State   Commission,   in   Execution
proceedings.
8. The   National   Commission   erroneously   allowed   the   Revision
Petition u/S. 21(b) which was not maintainable. Furthermore,
the National Commission modified the decree passed by this
Court  vide  Order dated 19.11.2012 wherein this Court had
directed the Board to pay Interest @ 18% p.a. on the principal
amount of Rs. 2,67,750/­ (which included an amount of Rs.
3,937 which had been initially deducted by the Board). The
National Commission has awarded Interest on the amount of
Rs. 3,937/­ twice, by first including it in the principal amount
of Rs. 2,67,750/­; and thereafter awarding Interest @ 18% on
the same amount of Rs. 3,937/­, which would amount to a
double payment. 
9. In view of the aforesaid discussion, we affirm the judgment of
the Delhi High Court, which has rightly set aside the Order
passed  by   the   National   Commission   on   the   ground   that   a
Revision   Petition   was   not   maintainable   against   the   Order
passed by the State Commission in an appeal arising out of
execution proceedings. 
17
The Appeal is accordingly disposed of.
…….........................J.
(UDAY UMESH LALIT)
…...……………………J.
(INDU MALHOTRA)
New Delhi,
May 6, 2019
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