INC FUND MANAGEMENT LTD Vs. SHAKUNTALA BRIJ MOHAN

JUDGEMENT

(1.) Both these revision petitions arose out of the same order dated 8.9.1999 passed by the State Commission, U.T. of Chandigarh in Appeal No. 91 of 1991. Brief facts of the case are :

(2.) The scheme has two options as far as return on investment is concerned. The respondents are covered by option "Plan - B" which is a commulative option. Regarding this option, the offer document states "the value of the units will appreciate in tune with a minimum assured returns or at higher returns that may be declared. No dividend will be paid till redemption. However, certificates indicating the income accrued every year will be issued on request". (The rates of "Assured minimum return" are given in para 14 of the offer document). Clause 6 is regarding duration of the scheme and it reads "the units will be redeemed on 31st March, 1998". Clause 15 provides for liquidity. This clause describes the re-purchase facility whereby the investors in units can sell them back at the Fund any time 1st April, 1995, at a price to be notified half-yearly.

(3.) The complainants/respondents case is that, since the scheme was for 7 years and since their certificates were dated 1.12.1990, they waited for repayment of the capital invested along with capital appreciation till end of December, 1997. When they heard nothing from the Ind Fund Management Ltd., on 18th February, 1998, they approached the local branch of Indian Bank to enquire about the procedure for getting back their money. The Bank gave them a form - (Annexure-D) with the heading "Application for Repurchase of Ind-Jyoti Units". The respondents clearly told them that they are seeking redemption since the 7 years period has expired and that they are not seeking to resell the units to the Fund. The respondents questioned them as to why they are being given a "Repurchase Form".