Section 72: Penalty for noncompliance of order

Consumer Protection Act • Official Statutory Text & Practice Guide

Non-Bailable / Bailable
Execution Offence
District Commission / State Commission
Act 2019

Legal Commentary & Landmark Judgments: Section 72

Section 72 of the Consumer Protection Act prescribes criminal penalties, including imprisonment up to three years and fines up to one lakh rupees, for willful failure or refusal to comply with any order of a Consumer Commission.

  • Core Legal Standard: Section 72 is the penal enforcement weapon of the consumer forum.
  • Sub-Section (1): District: Under sub-section (1), whoever fails to comply with any order made by the District Commission, State Commission, or National Commission shall be punishable with imprisonment for a term which shall not be less than one month, but which may extend to three years, or with fine not less than ₹25,000 extendable to ₹1,00,000, or with both.
  • Sub-Section (2): Commission: Under sub-section (2), the Commission is deemed to be a Judicial Magistrate of the first class for the purposes of the Code of Criminal Procedure (now BNSS) to try such offenses summarily.

Under sub-section (3), the Commission can issue bailable or non-bailable warrants directly against defaulting directors, managing directors, and partners of corporate entities.

Key Landmark Precedents:
  • State of Karnataka v. Vishwabharathi House Building Coop. Society (2003) 2 SCC 412: The Supreme Court held that the penal sanction under Section 72 (corresponding to Sec 27 of 1986 Act) is a potent statutory provision designed to compel obedience to consumer awards and uphold judicial authority against recalcitrant corporate debtors.
Legal Commentary:

Section 72 proceedings are quasi-criminal. If a company fails to satisfy a consumer award, non-bailable warrants of arrest are issued directly against its managing directors and key managerial personnel, leading to immediate custodial detention until the decretal amount is fully satisfied.