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TMI Blog1999 (2) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... non and George K. George for the Respondent. JUDGMENT 1. The petitioner is a shareholder of 2nd respondent company. This original petition is filed under article 226 of the Constitution for a direction to the company to allot rights share and direction to the 1st respondent to perform its statutory duty. 2. The petitioner is pursuance of an offer of the 2nd respondent company app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effected in cash amounting to Rs. 20,000 will be refunded. Similar applications appear to have been rejected. The general instructions para is in conson-ance with section 269SS. The Supreme Court dealing with disallowance as expenditure under section 40A(3) of the Act held that will include expenditure for purchasing of stock-in-trade in Attar Singh Gurmukh Singh v. ITO [1991] 191 ITR 667/59 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or create black money should not be regarded as curtailing the freedom of trade or business. ...The payments made for purchases would also be covered by the word 'expenditure' and such payments can be disallowed if they are made in cash in the sums exceeding the amount specified under section 40A(3). We have earlier observed that rule 6DD has to be read along with section 40A(3). The rule also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of a company to give to the shareholder his proportion of the rights shares does not constitute a consumer wrong and, therefore, no consumer action lies against it either under Consumer Protection Act, 1986 or MRTP Act, 1969. The action in this case was under section 12B of the MRTP Act, 1969 for compensation for denial of rights shares. The remedy lies within the framework of the Companies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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