2000 (8) TMI 1039 - Commission - Companies Law

Summary

Issues:
Appeals against common order dated 2-3-2000 by District Forum-VII in three complaints regarding loan and shares transfer. Appeal under section 15 of the Consumer Protection Act, 1986 for delay in filing and lack of merit.

Analysis:
The appellant filed three complaints under the Consumer Protection Act, 1986, alleging that he had deposited a sum of Rs. 1.40 lakhs as a loan with the respondent, who provided shares as security. When the appellant tried to transfer the shares, they were returned due to signature mismatches. The District Forum dismissed the complaints but allowed the appellant to seek relief from the appropriate forum. The appellant then filed appeals before the State Commission under section 15 of the Act. The State Commission noted that the appeals were filed beyond the prescribed period of thirty days. The proviso to section 15 allows for entertaining appeals after the period if there is sufficient cause. The Commission emphasized that "sufficient cause" must be bona fide and beyond the appellant's control. Since no application for condonation of delay was filed, the appeals were held to be time-barred and dismissed on this ground alone.

The State Commission further analyzed the merits of the appeals. It determined that the transaction in question was a commercial one, making the appellant not a consumer under the Act. As a result, the disputes raised were not consumer disputes and were not maintainable under the Act. The District Forum's decision to reject the complaints and advise the appellant to seek redressal elsewhere was deemed justifiable. Therefore, the State Commission found the appeals lacking in substance both in terms of delay and on merits. Consequently, the appeals were dismissed in limine with no order as to costs.

In conclusion, the State Commission disposed of the three appeals against a common order by the District Forum, emphasizing the importance of adhering to the prescribed time limits for filing appeals and the criteria for establishing "sufficient cause." It clarified the applicability of the Consumer Protection Act to the commercial transaction in question and upheld the District Forum's decision to reject the complaints. The State Commission's detailed analysis led to the dismissal of the appeals on both procedural and substantive grounds.