APPOLLO TUBES LTD Vs. LAL CHAND MALHOTRA

JUDGEMENT

(1.) This appeal has been filed by the defendant against the orders of the District Forum dated 9.2.90 by which the defendant has been ordered to pay Rs.300/- on account of dividend to the complainant with 16% interest from October, 1986 till the date of payment, within one month from the date of order.

(2.) Briefly, the facts are that the complainant respondent is a share holder of M/s. Apollo Tubes Ltd. , Appellant, and holds 750 shares in his name. On 21.6.86, the Company made an offer of shares on right basis to the share holders and also to the public, at par. It was assured by the appellant that 16% dividend would be paid on each share. The year of the company was to close on 30.9.86. The Company however, did not pay the dividend @ 16% per annum for the year October, 1985 to September, 1986 as promised but paid at a lessor rate. Consequently, it is prayed that the dividend @ 16% per annum for 12 months ending 30.9.86 be got paid to the complainant from the Company. The respondent also made, Consumer Assistance Centre as a complainant alleging that his relatives and friends hold about 5000 shares each, in the Company. It is stated that they were also entitled to the same relief.

(3.) The Company contested the claim and inter alia pleaded that the Forum had no jurisdiction to entertain the complaint. It is alleged that since the plea of the complainant was that the Company was guilt of offence of unfair trade practice, the jurisdiction of the Forum was barred under Sec.2 (1) (r) of the Consumer Protection Act because part 'a' of Chapter-III of Monopolies and Restrictive Trade Practices Act, 1969, hereinafter referred to as the 1969 Act, applied to the Company. It is further pleaded that the Consumer Assistance Centre is not registered under Companies Act and therefore, it could not file the complaint.