Shaik Allabakshu, vs The State Of Andhra Pradesh, on 9 July, 2025

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Andhra Pradesh High Court – Amravati

Shaik Allabakshu, vs The State Of Andhra Pradesh, on 9 July, 2025

Author: R Raghunandan Rao

Bench: R Raghunandan Rao

APHC010088402025
                   IN THE HIGH COURT OF ANDHRA PRADESH
                                     AT AMARAVATI                    [3541]
                            (Special Original Jurisdiction)

                   WEDNESDAY,THE NINTH DAY OF JULY
                    TWO THOUSAND AND TWENTY FIVE
                                    PRESENT
      THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
        THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM
                       WRIT PETITION NO: 4585/2025
Between:
Shaik Allabakshu,                                             ...PETITIONER
                                       AND
The State Of Andhra Pradesh and Others                 ...RESPONDENT(S)

Counsel for the Petitioner:

1. G SRI HARSHA
Counsel for the Respondent(S):

1. GP FOR HOME

2. THE ADVOCATE GENERAL

3. KOTHA LEELA GANESH RAGHAVENDRA
The Court made the following Order:

(per Hon’ble Sri Justice R. Raghunandan Rao)

The petitioner herein is the Managing Director of a company

named ‘Vijaya Saradhi Housing Private Limited’ which is involved in real

estate business. The said company is said to have made a lay out of land

in certain survey numbers of Vankayalapadu village of Pattipadu Mandal,

Guntur District. These plots were offered for sale and various members of
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the public had entered into agreements for purchasing these plots and

paid substantial amounts of money towards the purchase of these plots.

However, neither the company nor the petitioner herein was completing

the transactions by execution of necessary documents. The purchasers,

contending that the company had never even purchased the land which is

sought to be made into plots, had approached the District Consumer

Disputes Redressal Commission, Guntur for compensation and refund of

the amounts already paid to M/s. Vijaya Saradhi Housing Private Limited.

The respondents in these consumer cases were the petitioner described

as a director of M/s. Vijaya Saradhi Housing Private Limited and his wife

who was also described as a director of Vijaya Saradhi Housing Private

Limited.

2. These consumer cases, more specifically C.C.No.13 of 2019,

C.C.No.20 of 2019 and C.C.No.32 of 2019 were allowed with directions to

the opposite parties therein, to refund the sale consideration paid out by

the complainant and to pay compensation and Costs. The said amounts

being payable by within four weeks from the date of the order. As these

orders were not complied, the consumers filed Penalty Petitions 4 to 6 of

2022 before the District Consumer Disputes Redressal Commission,

Guntur.

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3. It appears that initially some steps were taken for arriving at

a compromise in the matter. However, the District Consumer Disputes

Redressal Commission, Guntur by an order, dated 20.07.2022, had taken

the petitioner herein into custody and forwarded the petitioner to the

Station House Officer, Pattabhipuram Police Station, under Section 27 of

the Consumer Protection Act, 1986 r/w Section 200 of Cr.P.C with a

further remand warrant being addressed to the Superintendant, District

Jail, Guntur for detaining the petitioner in the custody of the jail

Superintendant till 03.08.2022. The custody order was passed by way of

a common order in P.P.No.4 of 2022 in C.C.No.13 of 2019, P.P.No.5 of

2022 in C.C.No.20 of 2019 and P.P.No.6 of 2022 in C.C.No.32 of 2019.

Thereafter, the other affected parties, who had already approached the

District Consumer Disputes Redressal Commission, Guntur against the

petitioner and his wife had filed separate P.Ps for detention of the

petitioner. These P.Ps are P.P.Nos.17 to 42 of 2019, 45 to 65 of 2022

and P.P.Nos.72 to 84 of 2022.

4. The petitioner being aggrieved by his detention in the District

Consumer Disputes Redressal Commission, Guntur from 20.07.2022 has

approached this Court, by way of the present Writ Petition.

5. Sri G. Sri Harsha, the learned counsel appearing for the

petitioner would contend that the District Consumer Disputes Redressal
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Commission, Guntur did not have any power of detaining the petitioner for

such a prolonged period and in any event, the power that is said to have

been exercised under Section 27 of the Consumer Protection Act, 1986

r/w Section 200 of Cr.P.C would have to be set aside on the ground that it

has not followed the required procedure and has been passed without the

conditions set out in Section 27 of the Consumer Protection Act, 1986

being complied.

6. After notice, the respondents 4 to 6 had been served with

notice and Sri K.L. Ganesh Raghavendra has filed vakalat for them.

7. Heard Sri G. Sri Harsha, learned counsel for the petitioner,

the learned Government Pleader for Home appearing for respondents 1

to 3 and Sri K.L. Raghavendra, learned counsel appearing for

respondents 4 to 6.

8. As the circumstances in which the petitioner had been kept

under detention and the circumstances in which such detention had been

extended from time to time were not clear, this Court had summoned the

record in relation to P.P.Nos.4 to 6 of 2022, C.C.No.13 of 2019,

C.C.No.20 of 2019 and C.C.No.30 of 2019.

9. The available material shows that C.C.No.13 of 2019 came

to be disposed of on 30.08.2019 directing the petitioner and his wife to

refund sale consideration of Rs.1,80,000/- with interest @12% per annum
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W.P.No.4585 of 2025

from 05.04.2015 till realization, payment of Rs.50,000/- towards

compensation, payment of Rs.20,000/- towards mental agony and

payment of Rs.2,000/- towards cost of complaint.

10. C.C.No.20 of 2019 was disposed of by an order, dated

30.08.2019, directing the petitioner and his wife to pay to refund sale

consideration of Rs.1,71,612/- with interest @12% per annum from

30.11.2015 till realization, payment of Rs.50,000/- towards compensation,

payment of Rs.20,000/- towards mental agony and payment of Rs.2,000/-

towards cost of complaint.

11. C.C.No.32 of 2019 was disposed of by an order, dated

30.08.2019, directing the petitioner and his wife to pay to refund sale

consideration of Rs.2,79,000/- with interest @12% per annum from

30.11.2015 till realization, payment of Rs.50,000/- towards compensation,

payment of Rs.20,000/- towards mental agony and payment of Rs.2,000/-

towards cost of complaint.

12. In C.C.No.13 of 2019, Penalty Petition No.4 of 2022 came to

be filed on 02.11.2021 contending that the petitioner and his wife had

failed to comply with the orders of the District Consumer Disputes

Redressal Commission, Guntur. The Commission after taking his petition

on file initiated process on 26.04.2022, matter was posted to 11.05.2022

and 27.06.2022. On 27.06.2022 a prayer was made for issuance of
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warrants against the petitioner and his wife for not appearing before the

reddressal commission. On 20.07.2022, the petitioner was produced

before the Commission, by a police constable of Pattabhipuram Police

Station, in execution of the warrant issued on 27.06.2022. On that date,

the Commission remanded the petitioner for 14 days up to 03.08.2022

with a direction to produce the petitioner on 03.08.2022 at 11.30 a.m. On

03.08.2022, the remand was extended till 16.08.2022. The matter again

came up on 16.08.2022 when the petitioner was examined under Section

251 of Cr.P.C and his remand was extended for a further period of 14

days. The matter underwent various adjournments when the remand of

the petitioner was extended from time to time. The orders passed in

P.P.Nos.5 and 6 of 2022 are identical orders, passed on the same dates.

13. A perusal of this record shows that notices had been sent to

the petitioner and his wife in these penalty petitions and non bailable

warrants were issued for their production, on account of their non-

appearance before the District Consumer Disputes Redressal

Commission, Guntur despite service of notice. Upon being produced, the

District Consumer Disputes Redressal Commission, Guntur had

remanded them to the custody of the Jail Superintendent, District Jail,

Guntur. Thereafter, this remand was extended from time to time. What

becomes clear is that the petitioner had not been detained for non-
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compliance of the directions of the District Consumer Disputes Redressal

Commission, Guntur. The petitioner was produced under warrants issued

for compelling his appearance before the District Consumer Disputes

Redressal Commission, Guntur and was remanded to the custody of the

Jail Superintendant, District Jail, Guntur. This remand was extended from

time to time.

14. The learned counsel for the petitioner relies upon the

Judgment of the Hon’ble Supreme Court in Ganeshlal vs Shyam

decided in Civil Appeal No.331 of 2007, by a judgment dated 26.09.2013.

In this case, the question that came up before the Hon’ble Supreme Court

was whether real estate activity would come within the Consumer

Protection Act or not. This judgment may not be relevant for the purpose

of this case inasmuch as the said judgment would be relevant only for the

purpose of setting aside the order passed in the consumer cases. The

present Writ Petition relate to the detention of the petitioner, and whether

such detention is permissible and legal.

15. Section 27 of the Consumer Protection Act, 1986 which is

identical to Section 72 of the Consumer Protection Act, 2019 provides for

levy of fine or imprisonment which is not less than one month, but which

may extend to three years as a penalty against a person who fails or
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omits to comply with any order made by the District Commission, the

State Commissioner or the National Commission as the case may be.

16. Section 27/72 of the Consumer Protection Act, 1986/

Consumer Protection Act, 2019 requires a finding by the Consumer

Forum that there has been non-compliance of the award passed by the

Redressal Commission. Upon such a finding being given, the Redressal

Commission may levy a fine or sentence the defaulter to a jail sentence.

In the present case, there has been no finding by the Redressal

Commission that there is a default and consequently the petitioner was

being sentenced to imprisonment. A reading of the docket orders in the

penalty petition would show that the detention of the petitioner arose out

of his production before the Redressal Commission, in pursuance to the

execution of warrant issued by the Redressal Commission. No enquiry

has been conducted as to whether there was non-compliance of the

directions of the Redressal Commission and whether such non

compliance would require the Redressal Commission to imprison the

petitioner. In the absence of any such findings and in the absence of any

proceedings initiated for arriving at such findings, the petitioner could not

have been detained indefinitely in this manner.

17. It is settled law, that human liberty is the most sacrosanct

right available to a citizen of this country. Such a right enshrined in Article
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19 and 21 of the Constitution of India cannot be trifled with in such a

casual and cavalier manner. The power of imprisonment granted to the

District Consumer Disputes Redressal Commission under Section 72 of

the Consumer Protection Act, is not a power that can be exercised in

such a casual manner. Violation of law or the non-compliance of the

orders of the Redressal Commission cannot and will not result in an

automatic incarceration of the defaulter. The necessary provisions

relating to the procedural safeguards protecting the liberty of a citizen

would have to be complied with before any defaulter can be put in prison.

18. In the present case, there is a total absence of such

compliance by the District Redressal Commission. In such a situation, the

continued imprisonment of the petitioner has to be ended at the earliest.

Though no application for release or bail appear to have been moved

before the District Consumer Disputes Redressal Commission, the same

cannot detract from the need to protect the fundamental right of personal

liberty of the petitioner.

19. Accordingly, the petitioner shall be released forthwith by the

Jail Superintendent, District Jail, Guntur, in relation to the order of remand

passed in P.P.No.4 of 2022 in C.C.No.13 of 2019, P.P.No.5 of 2022 in

C.C.No.20 of 2019 and P.P.No.6 of 2022 in C.C.No.30 of 2019.
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20. It is further stated that the District Redressal Commission has

taken on file further Penalty Petitions in which memos seeking arrest of

the petitioner had been filed. Since the petitioner has not filed any orders

passed in such petitions, it would not be appropriate for this Court to

speculate what orders have been passed and whether such orders have

been passed in compliance of the requirements of the Consumer

Protection Act.

21. However, since the liberty of an individual is involved, this

Court would further direct the District Redressal Commission to withdraw

any order of remand that may have been passed by the District

Consumer Disputes Redressal Commission, Guntur merely on the ground

of non-appearance of the petitioner and where such orders have been

passed without an enquiry and finding as to the non-compliance of the

directions of the District Consumer Disputes Redressal Commission,

Guntur.

22. The District Consumer Disputes Redressal Commission,

Guntur in pursuance of these directions, shall take up all such matters

involving the petitioner, which are pending before the District Consumer

Disputes Redressal Commission, Guntur within three days on receipt of

this order by advancing of such cases and pass necessary orders of

release. The observations in this order will not preclude the District
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Consumer Disputes Redressal Commission, Guntur from completing the

enquiry in the above penalty petitions and passing necessary orders,

uninfluenced by the observations in this order.

23. However, we would also make it clear that the release of the

petitioner directed in this case would not in any manner impinge upon the

enquiry to be conducted in all the aforesaid penalty petitions or such other

penalty petitions that may have filed against the petitioner by other

purchasers. It would also be open to the petitioner to raise all his

defences, permissible under law, before the District Consumer Disputes

Redressal Commission, Guntur.

24. Accordingly, this Writ Petition is allowed. There shall be no

order as to costs.

As a sequel, miscellaneous petitions, pending if any, shall stand

closed.

_______________________
R.RAGHUNANDAN RAO,J

___________________
SUMATHI JAGADAM,J
RJS
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HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO

HON’BLE SMT JUSTICE SUMATHI JAGADAM

WRIT PETITION No.4585 of 2025
(per Hon’ble Sri Justice R. Raghunandan Rao)

Dt: 09.07.2025

RJS

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