2004 (12) TMI 393 - SC - Companies Law

Whether the Commission could straightaway pass an order under section 12-A directing possession to be handed over on the payment of balance sale price? Held that - Appeal dismissed. In declining to grant the relief of possession by way of interim measure, the Commission cannot be said to have committed a jurisdictional error or patent illegality. There is no perversity, nor irrelevant reasoning which makes the impugned order vulnerable to attack. No irreparable damage is caused to the appellants by declining the mandatory injunction to put the appellant in possession even before the enquiry is concluded, as rightly held by the Commission. Moreover, it is pertinent to note that no offer was made before the Commission nor in the SLP filed in this Court for payment of extra charges, without prejudice . Thus no valid ground to disturb the impugned order of the Commission in exercise of the jurisdiction under article 136.

Issues:
1. Interim relief sought under Monopolies and Restrictive Trade Practices Act.
2. Rejection of miscellaneous applications under section 12A of the Act.
3. Appeal to Supreme Court under Article 136 of the Constitution.
4. Dispute over possession of apartments and payment of extra charges.
5. Commission's jurisdiction to direct possession under section 12A.
6. Appellants' efforts to obtain interim relief stalling the enquiry.

Issue 1: Interim relief sought under Monopolies and Restrictive Trade Practices Act
The appellants sought relief under section 36A of the Act to restrain the respondent from cancelling apartment allotments for non-payment of extra charges. The Commission observed no prima facie ground for interim relief, citing protection from cancellation provided earlier. The appellants filed miscellaneous applications seeking stay of demands, possession of flats, and relief from unfair trade practices.

Issue 2: Rejection of miscellaneous applications under section 12A of the Act
The Commission rejected applications seeking stay of extra charges and possession of flats, leading to the Special Leave Petition (SLP) filed in the Supreme Court. The appellants bypassed the appeal route under section 55 of the Act and invoked the Court's jurisdiction under Article 136 of the Constitution.

Issue 3: Appeal to Supreme Court under Article 136 of the Constitution
The appellants approached the Supreme Court under Article 136 after the rejection of their miscellaneous applications. The Court noted the progress in the enquiry and the appellants' repeated attempts to obtain interim relief, including the rejection of a previous application seeking possession.

Issue 4: Dispute over possession of apartments and payment of extra charges
The dispute centered on possession of apartments and payment of extra charges demanded by the respondent. The appellants were willing to pay a portion of the extra charges 'without prejudice' but faced resistance from the respondent demanding full payment before possession handover. The Commission's order highlighted the appellants' reluctance to conform to conditions set by the Court in a related case.

Issue 5: Commission's jurisdiction to direct possession under section 12A
The Commission's refusal to grant possession as interim relief was upheld by the Supreme Court, emphasizing no jurisdictional error or irreparable harm caused to the appellants. The Court noted the respondent's refusal to accept partial payments and the dismissal of a previous application seeking similar relief.

Issue 6: Appellants' efforts to obtain interim relief stalling the enquiry
The appellants' persistent efforts to secure interim relief impacted the progress of the enquiry. Despite the Commission's decision not to grant possession as an interim measure, the Court declined to interfere, citing no valid grounds for disturbance. The Court urged expeditious continuation of the enquiry by the MRTP Commission.

In conclusion, the Supreme Court dismissed the appeal and emphasized the need for the enquiry to proceed promptly, directing the Registry to return the records to the Commission without costs incurred.

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