TMI Blog1994 (4) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... renuously urged on behalf of the appellant that the respondent does not come within the definition of a consumer under the Act at all it is unnecessary to enter into the thicket of facts took deeply. It suffices to mention that the respondent's case was that he had purchased 40 non-convertible debentures of Rs. 100 each from the appellant-company way back on 1-2-1988. Apparently the said debentures were to be redeemed after a period of four years on 1-2-1992. The respondent held the debentures till the date of redemption and apparently applied for the repayment of the amount on the due date. However, the Company converted the said debentures into 250 equity shares of Rs. 20 each at a premium of Rs. 7, which the respondent refused to accept. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand on merits was that no cause of action thereby arose to the respondent. 4. The respondent appeared as his own witness in support of the complain- ant and in rebuttal RW-1 Shri P.K. Sethi, Branch Manager of the appellant- concern at Ambala gave his sworn testimony. 5. The District Forum somewhat summarily concluded that the action of the appellants in converting the debentures into the shares was not justified because no express consent of the complainant-respondent was obtained by them to that effect. On that premise alone, the relief was granted in the terms noticed at the very out-set. 6. Mr. H.S. Awasthi, the learned counsel for the appellant had pinned himself on the spear-head contention that the respondent by no stre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in Pfizer Ltd. v. Hansraj Singh Barak of Gurgaon III [ 1993] CPJ 1721. Therein after an indepth consideration of the core issue involved, it was concluded as follows: "In the light of the somewhat exhaustive discussion, of principle, the language of the Statute and precedent, the answer to the question posed at the outset has to be rendered in the negative. It is held that the unsuccessful applicants seeking allotment of shares in the public issues floated by incorporated companies are not consumers within the meaning of the definition under the Act." The aforesaid ratio directly or by way of analogy goes deeply in favour of the stand taken by the appellants. However, what further conclude the matter is the fact that a virtually ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequently to the Tamil Nadu State Commission's case. Therein the National Commission had unhesitatingly held as follows: "After having heard both sides, we have come to the conclusion that First Appeal No. 124/02 filed by the Company has to be allowed and its contention that the complaint did not raise a 'consumer dispute' has to be accepted. The transaction between the parties was plainly one of sale of shares by the Company to the complainant with a stipulation for re-purchase of the shares within a period of three years. This was purely a transaction of sale of goods with a condition for re-purchase and not an agreement of hiring of any service. There being no defect in the goods sold, there was no cause of action for the complainan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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