TMI Blog1993 (9) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... of Companies Act providing for refund of application money in case of collection being less than 90 per cent of targeted figure fixed with CCI's approval, was not applicable, there was lack of proper application of mind by District Forum while interpreting said provision, and consequently, matter could be remanded for fresh decision - Held, yes - 56 OF 1993 - - - Dated:- 28-9-1993 - JUSTICE S.S. DEWAN, PRESIDENT RAM LAL GUPTA AND MRS. GURKANWALKAUR, MEMBERS Pritam Saini, Advocate for the Complainant. ORDER Dewan, President - The opposite party before the District Forum, appeals under section 15 of the Consumer Protection Act, 1986 against the five virtually identical orders of the District Forum, Bhatinda dated 3-6-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rores. According to the complainant, the opposite party was required by the Controller of the Capital Issues, New Delhi to refund all the amounts along with interest to the applicants as per notice published in the Tribune on 15-5-1990 and as the opposite party failed to make payment, he made a complaint for getting refund of the amount along with interest at the rate of 18 per cent per annum. 3. On notice being issued, the opposite party raised a preliminary objection regarding the maintainability of the complaint. On merits, it was admitted that the amount received was less than the target but in spite of it, the Corporation was executing its project as promised. With these allegations, the opposite party prayed that the complaint des ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong with interest as was prescribed and accordingly directed the Corporation to make refund of the amount received, i.e., Rs. 2,000 from the complainant along with interest at the rate of 18 per cent per annum from the date of deposit till payment and to pay Rs. 200 as costs. Being aggrieved by this order, the opposite party - appellant has filed this appeal as aforesaid. 5. Despite service, neither the complainant-respondent in person nor his representative is present when the case is called for hearing. Mr. Pritam Saini, the learned counsel for the appellant-Corporation has vehemently argued before us that the District Forum has wrongly interpreted the provisions of section 69 and while referring us to the clauses No. 9 and 10 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt shall be made of any share capital of a company offer to the public for subscription, unless the amount stated in the prospectus as the minimum amount which, in the opinion of the Board of Directors, must be raised by the issue of share capital in order to provide for the matters specified in clause 5 of Schedule II has been subscribed, and the sum payable on application for the amount so stated has been paid and received by the company, whether in cash or by a cheque or other instrument which has been paid. (2) The amount so stated in the prospectus shall be reckoned exclusively of any amount payable otherwise than in money, and in this Act referred to as 'the minimum subscription'. (3) The amount payable on application on each shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articularly attracted in the case and consequently deserve notice for facility of reference : "9. Companies will make adequate disclosure in the prospectus, letters of offer, advertisements, publicity literature, investors/brokers conferences, etc., in this context and also undertake to refund the amounts at the end of 90 days from the closure of the issue, if not subscribed up to 90 per cent and to pay interest at 15 per cent per annum if refunds are delayed by more than ten days after this period. 10. These guidelines/conditions will apply to all public/rights issues made hereafter, except those for which prospectuses/letters of offer have been filed /issued up to 8th April, 1990 (issued by the Ministry of Finance, Department of Econo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase back for decision afresh of the complaint in accordance with law keeping in view the observations made herein above after giving an opportunity to the parties of being heard. If any of the parties makes request to the District Forum for adducing evidence, it will be open to the District Forum to record it. The result is that the appeals are allowed and the order dated 3-6-1993 passed by the District Forum, Bhatinda in Complaint Cases Nos. 128 of 1991, 230 of 1991, 86 of 1991, 249 of 1991 and 250 of 1991 are set aside and the cases are sent back for a fresh decision in accordance with law. Keeping in view the observations made hereinabove, the parties shall bear their respective costs. Appeals allowed. - - TaxTMI - TMITax - Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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