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Consumer Commission admits appeal, sets side DF order
2/12/2007 10:42:15 PM
JAMMU FEB-12
The Jammu and Kashmir Consumer Disputes Redressal Commission Jammu, headed by Mr Justice G D Sharma with Mr.Khalid Hussain, as Member, has accepted the appeal of Mulkh Raj Sharma of Canal Road Jammu and set aside the order of the Divisional Forum passed on December 24, 2002.
The Commission has directed the parties to appear before the Forum on February 28 and the office shall immediately sent back the record and the Forum shall give top priority for the disposal of this case which is pending at the preliminary stage from 2000.
The appeal has been filed against the order passed by the Divisional Consumer Forum Jammu whereby the complaint of the appellant was dismissed on the plea that the Forum has no jurisdiction to try the case.
The relevant facts of the case are that the appellant Mulkh Raj was offered the issuance of Triple Option Convertible Debentures on behalf the Reliance Petroleum Limited and the allotment money was fixed at Rs.2500 and number of TODCS allotted was 200. In the second call money notice addressed to the appellant by the Company Secretary Reliance call money in the sum of Rs.2500 was shown payable while in the third and final call notice the call money due and payable was in the sum of Rs.3000. The appellant made out a case by alleging that 200 TODCS were allotted to him and against these he had to get 1000 equity shares and 400 equity share warrants but deficient service was made in his favour.
Justice Sharma said that Forum had at one time dismissed the complaint and it got revived as the Commission had remanded the case in appeal No 2208/2001 with the direction to give a finding regarding the jurisdiction of the Divisional Forum to entertain the complaint. In terms of the impugned order, the Forum seems to have been swayed by the judgement given by the Supreme Court in the case of HB Jayaram Vs ICCI and held that the Divisional Forum Jammu has no jurisdiction to try the case.
After hearing arguments of Mr S C Mansotra for the appellant and Ram Kumar Jha appearing for the respondents and going through the records that the Consumer Commission observed that it is established that the transaction for supply of Convertible Debentures in the form of 1000 equity shares and 400 equity share warrants was entered into between the appellant and the respondents in the city of Jammu and further more the appellant has come with a specific plea that deficient service was made in his favour at Jammu as instead of 1000 equity shares, only 600 equity shares and 400 equity share warrants were supplied to him in Jammu.
The Commission further observed that the law cited by the Divisional Forum has no application to the facts of the present case as it relates to the company disputes under the Companies Act. The present case has to be purely governed by the provision of the Consumer Protection Act and falls within the purview of section 9 of the Act.
Accordingly the Commission accepted the appeal and set side the Divisional Forum order.

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