Karnataka HC Tells Consumer Commission To Consider Builder’s Plea To Ease Bail Condition Requiring 20% Payment, Alongside Similar Cases

The petitioner, a partner of M/s. Pruthvi Builders and Developers, challenged the District Consumer Disputes Redressal Commission, Dharwad’s order granting bail in proceedings under Section 72 of the Consumer Protection Act, 2019. The bail conditions required, among other things, a personal bond with two sureties for the due amount and payment or deposit of 20% of that amount in each case.

The petitioner submitted that he had been in custody for over four months and that, across numerous cases, the payment and surety conditions were beyond his means; he sought relaxation of conditions 1 and 2.

The Commission had noted objections alleging non-cooperation, absconding, and violations of its orders.

The Commission granted bail under Section 436 of the Code of Criminal Procedure, 1973, read with Section 478 of the Bharatiya Nagarik Suraksha Sanhita, 2023, in proceedings alleging an offence under Section 72 of the Consumer Protection Act, 2019.

The High Court identified no separate precedent or broader legal test; it directed the Commission to reconsider the challenged conditions if relaxation was permissible in accordance with law, upon the petitioner demonstrating his bona fides.

The High Court considered the Commission’s recorded concerns about the petitioner’s alleged non-cooperation, absence from its jurisdiction, and violations of orders, and found no apparent illegality or irregularity warranting interference with the bail order.

However, in light of the petitioner’s plea that compliance with conditions 1 and 2 was not feasible, it reserved liberty for him to seek relaxation from the Commission and directed the Commission to reconsider those conditions in accordance with law.

To address the petitioner’s submission that similar cases were pending, the Court directed the Commission to endeavour to post them together.

It disposed of the petition, reserving the petitioner’s liberty to apply to the District Commission for relaxation of conditions 1 and 2 upon showing bona fides; the Commission was directed to consider the applications in accordance with law and endeavour to hear the matters together.