Maintainability of compensation claims in capital-raising disputes fails where shares are issued during the proceedings.

A compensation application under section 12B of the Monopolies and Restrictive Trade Practices Act was found not maintainable because the grievance concerned the issue and acceptance of shares and debentures in a capital-raising exercise. The principal relief had become unnecessary after the shares were issued during the pendency of the proceedings, leaving no surviving case for consideration. On the facts and the governing legal position relied on by the respondent, the Commission concluded that the application could not proceed and was rejected.

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Issues: Whether the compensation application under section 12B of the Monopolies and Restrictive Trade Practices Act, 1969 was maintainable in the facts of the case.

Analysis: The grievance related to the issue and acceptance of shares and debentures, and the principal relief sought was rendered unnecessary when the shares were issued during the pendency of the proceedings. The Commission held that the application arose out of a process of raising capital by issue of shares, and on the facts and the governing legal position relied upon by the respondents, the applicant had no surviving case before the Commission.

Conclusion: The application was not maintainable and the issue was decided in favour of the respondent and against the applicant.

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