Bank not honoring consumer court ruling. Where to complain about it?


If a bank does not honor a consumer court ruling, can it be booked for contempt of court? On filing a case in the consumer court against City Finance against their high rate of interest for home loans, the court decided the case in my favor and asked the bank to restructure their rate of interest and fined the bank Rs. 5000 as well.

 

It’s been 3 years now and no action has been taken from the bank’s side. Should I apply for contempt of court? How should I take this forward legally?

 

Answer

 

Yes, as per a recent decision of Allahabad High Court, it has been categorically held that anyone who does not abide by the ruling of the Consumer Forum can be charged with contempt of court as the High Court is empowered with the power to punish any one for the contempt of a court sub-ordinate to him and the Consumer forum is a court sub-ordinate to a High Court. So you can proceed with a contempt of court petition.

 

Otherwise, Consumer Courts are given vast powers for enforcement of their order. You can file an application for execution of the Order whereby the Consumer Court is empowered to order attachment of the property of the judgement-debtor.

 


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