1993 (9) TMI 280 - Commission - Companies Law

Deficiency - Complainant applied for debentures of respondent-company which were allotted to him vide letter dated 14-8-1984 - Debentures were to be redeemed by respondent at par on expiry of seventh, eighth and ninth year - Respondent did not redeem part of debentures on expiry of the year and showed its inability to do so - A resolution was passed by respondents in their general meeting by which instalments were re-scheduled - It was stated that it was subject to approval of holders of 13.5 secured non-convertible part of debentures, Controller of Capital Issues, Financial Institutions, etc. - It was not shown that approval of resolution had been given by said persons/authorities - Whether said resolution was binding on complainant - Held, no

Summary

The judgment by the State Consumer Disputes Redressal Commission involved a complaint regarding the redemption of debentures by a company. The company had rescheduled the payment dates without proper approvals, leading to a ruling in favor of the complainant. The appeal was accepted, directing the company to make the payments within three months or face action under the Consumer Protection Act, 1986.