1993 (9) TMI 280 - Commission - Companies Law

Company Ordered to Pay Debenture Redemption Amount Promptly Under Consumer Protection Act

The State Consumer Disputes Redressal Commission ruled in favor of the complainant regarding the redemption of debentures by the company. The company was ... Deficiency - Complainant applied for debentures of respondent-company which were allotted to him vide letter dated 14-8-1984 - Debentures were to be redeemed by respondent at par on expiry of seventh, eighth and ninth year - Respondent did not redeem part of debentures on expiry of the year and showed its inability to do so - A resolution was passed by respondents in their general meeting by which instalments were re-scheduled - It was stated that it was subject to approval of holders of 13.5 secured non-convertible part of debentures, Controller of Capital Issues, Financial Institutions, etc. - It was not shown that approval of resolution had been given by said persons/authorities - Whether said resolution was binding on complainant - Held, no The judgment by the State Consumer Disputes Redressal Commission involved a complaint regarding the redemption of debentures by a company. The company had rescheduled the payment dates without proper approvals, leading to a ruling in favor of the complainant. The appeal was accepted, directing the company to make the payments within three months or face action under the Consumer Protection Act, 1986.