In Brief
H.K. Singla, secretary of a cooperative society, was sentenced to two years' imprisonment under Section 27 of the Consumer Protection Act, 1986 for the society's failure to pay maturity amounts owed to a depositor. The Supreme Court held that imprisonment cannot be imposed on an individual merely for being an officer of the defaulting entity without a personal liability order against that individual. The Court suspended the imprisonment order and remanded to the State Commission to consider whether personal liability could be established, while allowing the complainant to pursue recovery through law against the society under liquidation.
The lawyer headnote and full judgment text are available to registered users.