RAVI KANT Vs. NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

JUDGEMENT

(1.) The Ist petitioner is Mr. Ravi Kant and his wife is the 2nd petitioner, they seek issue of a Writ of Certiorari quashing the orders of the National Consumers Disputes Redressal Commission, New Delhi (herein called the "National Commission") dated 8.12.1995 in First Appeal No. 666 of 1993 and the orders of the State Consumer Disputes Redressal Commission, New Delhi (hereinafter called the "State Commission") dated 15.10.1993 in 4 cases viz. Case Nos. C-242, C-243, C-255 of 1992 and C-82 of 1993.

(2.) By orders dated 15.10.1993 passed under Section 27 of the Consumer Protection Act, 1986 (hereinafter called "the Act"), the State Commission imposed a sentence of 1 year simple imprisonment on the 1st petitioner and a fine of Rs. 5,000.00 in each of the 4 cases (or in default, simple imprisonment of 3 months). The 2nd petitioner being a lady was directed to pay a fine of Rs. 10,000.00 in the Case No. C-243 of 1992. The abovesaid order was confirmed by the National Commission on 8.12.1995.

(3.) The petitioners floated two companies, one in 1987 called the Instant Growth Funds (Pvt.) Ltd and the other in 1989 called the I.G.F. Leasing (Pvt.). They were the two directors in each of these companies. Members of the public invested huge sums in these companies. It is revealed from the Bankers that Instant Growth Funds (P) Ltd received an amount of Rs. 50.18 lakhs, while I.G.F. Leasing (P) Ltd. received Rs. 45.57 lakhs. The 1st petitioner issued post-dated cheques for principal interest. Clause 2 of the agreement required that the loan - trust money be invested in hire purchase business in 30 days. Clause 3 stated that hire purchase agreement should be entered between the investor/Shareholder, hirers and company, and the original hire purchase agreement will be supplied to the investor/shareholder. These two clauses were not implemented. The claimant in Case No. 242, who is a housewife obtained decrees from the State Commission for Rs. 1 lakh in Case No. 242, Rs. 1,94,000.00 in Case No. 82/93. One Amritlal, a retired official, obtained decree in Case No. 243 for Rs. 1,70,000.00 and one Deepak Chopra obtained decree in Case No. 335/92 for Rs. 1 lakh.