The bank                    

(2.1)                    on     and therefore                                      All this       

3)                                                There was no deficiency in service on its part.                                          Company Ltd.,                                    

4)                                              

5)          

6)               

i.    Whether the complainants are entitled for possession and registration of flats or in the alternative 

ii.   Whether  

iii.  Whether the complainants are 

iv.  To what relief?

7)                          

8)                 

9)                 

10)               The said applications were     

11)                

12)                

13)                        

14)                     

The CLB 

(i)                  I permit the induction of IL & FS group (consisting of Infrastructure   

(ii)                 The IL &FS group shall invest Rs.20 lakhs in equity share  

(iii)               The IL &FS group on induction as the strategic investor

shall 

a)   There shall be 4 nominees of the IL &FS group as directors on the Board of MPL including the Chairman.

b)   The existing Directors of MPL, i.e., Mr.Rama Raju, Mr.D.Gopla Krishnam Raju and Mr.D.Venkata Satya Subba Raju shall resign as Directors of MPL immediately on induction of IL&FS group as the strategic investor in MPL.

c)   Mr. Ved Jain , the nominee Director, appointed by the Union 

(iv).    

(v)

The order required the above said group to complete the project within 18 months.     

15)                   in view of the above orders:

The supreme Court in  

           , the Supreme Court held that the powers under Section 402 are residuary in nature and in addition to the powers available to the Company Law Board under Sections 397(2) and Section 398(2) which permit the Company Law Board to make such order as it thinks fit with a view to bringing to an end the matters complained under 397(1) and 398(1).

           the Supreme Court held that the jurisdiction of the Company Law Board having been couched in wide terms and as diverse reliefs can be granted by it to keep the company functioning, is it not desirable to pass an order which for all intent and purport would be beneficial to the company itself and the majority of the members? A court of law can hardly satisfy all the litigants before it. This however, by itself would not mean that the Company Law Board would refuse to exercise its jurisdiction, although the statute confers such a power on it.

           it was held that Clause (g) 

           ,it was held that instead of destroying the corporate existence of a company, the Company Law Board has been enabled to continue its corporate existence by passing such orders as it thinks fit in order to achieve the objective of removing the oppression to any member or members of a company or to prevent the company’s affairs from being conducted in a manner prejudicial to public interest.

The decisions did not lay down      

16)                 High Court

‘There are three categories of cases. PRUDENTIAL CAPITAL MARKETS LIMITED (‘PCML’ for short) and on the District Forum allowing the application, the petitioner herein approached the State Commission which dismissed the appeal filed and whereupon the depositor approached District Forum under Section 27(1) of the Consumer Protection Act, 1986 by filing penalty petition.  

In the process, the question whether CLB can only entertain the complaint against PCML has arisen.  

17)              

‘The next aspect of the matter is whether the provisions of the Companies Act and the RBI Act impliedly ousts the jurisdiction of the Consumer Forums when the CLB is seized of the matter or passed an order at the instance of some of the depositors of NBFC.    Provided that the Company Law Board may, before making any order under this sub-section, give a reasonable opportunity of being heard to the company and the other persons interested in the matter.        

18)               

The CLB is constituted by the Central Government and the said Board shall exercise and discourage powers and functions as may be conferred on it by or under the companies Act or any other law and shall also exercise and discharge such other powers and functions of the Central Government under the Companies Act or other law as may be conferred on it by the Central Government. Notwithstanding subsection (1A) of Section 10-E of the Companies Act, the Civil Courts exercised jurisdiction under sec.9 of the Code of the Civil Procedure, till sub-section (9) of Section 58-A was inserted by the Companies (Amendment ) Act, 1977 with effect from 24-12-1977 conferring powers on the CLB to entertain an application of the depositor for repayment of money. After 1977, till the enactment of Consumer Act in 1986, both the Civil Courts as well as the CLB entertained applications from the depositors for refund of deposits. After the Consumer Act, the Forums established under it started granting redressal to the depositors having regard to the broad definition ‘service’ adumbrated in Sec.2(1) (O) of the Consumer Protection Act. Ultimately, to provide an additional speedy remedy, the Parliament enacted RBI ( Amendment) Act, 1997 inserting Sec.45-QA giving power to CLB constituted under Sec.10-E of the Companies Act which ‘may, either on its own motion or on application of the depositors’ order NBFCs to make repayment of such deposits. This background should be kept in mind while examining the order of the CLB, Eastern Region Bench, Calcutta, dated 27-5-1998.

Their lordships also held at para-57 as follows:

‘Sub-section (5) of Sec.10-E of the Companies Act lays down that the CLB shall in the exercise of its powers and the discharge of its functions under the Companies Act or any other law be guided by the principles of natural justice.     

Obligation is on the part of the CLB to order notices to all the depositors in a matter like this. 

19)               clutched   

Their Lordships in the above case at Pare-59 pointed out as follows:

‘Further, as per the legal position, the proceedings before appropriate Bench of CLB should be initiated by the aggrieved party at the place of company’s registered office. This is cumbersome procedure.  

At

‘The summary of the findings under point No.1 for consideration may now be given. (i) A writ of prohibition cannot be granted unless want of jurisdiction is apparent and if want of jurisdiction is not apparent, the applicant must wait until the decision making body passes orders and seek a writ of certiorari. (ii) A writ of prohibition ordinarily cannot be granted to stop execution or implementation of the decision; (iii) The grant of writ of prohibition is also governed by other principles which ordinarily govern the grant of extraordinary writs like delay and laches, availability of alternative remedy etc. (iv) The provisions of Sec.45-Q, 45-QA of the RBI Act and Sec.58-A(9) of the Companies Act, do not either expressly or impliedly bar the jurisdiction of the forums constituted under the Consumer Protection Act, from entertaining a consumer dispute case at the instance of the depositor claiming repayment of the deposit from a non-banking finance company.  

20)                held:

“It is the case of the complainants before us that they did not apply to the Company Law Board under Section 45QA. They were not served with any notice of any proceedings before the Company Law Board and they were not aware of any notice being published in any newspaper to which they subscribe to or is otherwise in circulation in the locality in which they reside. They say it is perversity of justice that Company Law Board situated in Mumbai could be approached by small depositors in the far flung corner of the country. The whole scheme as framed is floated and tilted in favour of NBFC. That is, however, not for us to consider. What the requirement of law is that a depositor may either approach the Company Law Board under Section 45QA or file a complaint under the Consumer Protection Act before the appropriate forum. A depositor cannot certainly choose both the remedies simultaneously and once he files an application under Section 45QA of the RBI Act before the Company Law Board, he cannot file a complaint in a Consumer Forum under the Consumer Protection Act.”

It is not the case of the developer that        

21)                       stakeholders, and the allottees.  

It is not known                 

22)                           

23)               Undoubtedly,      

24)                      

25)     

26)                        

27)     

This kind of equitable action to recover back money which ought not       undue    is, that the     

(emphasis supplied)

Section 72 of the Indian Contract Act runs as follows :

A person to whom money       

28)                             

29)                                      

30)                    

31)                

7(a)         

The developer           

32)                         

33)                      The bank had taken a letter from the complainants                

34)                                                  to tripartite agreement                          

35)                               

36)However, the very property which the complainant sought to purchase a non-existent property kept as primary security.               

37)                               

38)                 by        Being an                        

39)                      

40)                  

“Refusal on the part of the respondent bank to pay interest on the ground that       

41)                                                       This suppression of rules at the time when so called authorization   

42)                                                   

43)            

44)              

1. The developer Op1    

2. Further the developer Op1 is     

Time for compliance eight weeks.

1)PRESIDENT 

2)      MEMBER 

Appendix of Evidence

Witnesses Examined for Complainants:                                   

Witnesses examined for Opposite Parties: 

Documents marked for complainants:

Ex 

Ex A-2                       

Ex A-3                       

Ex A-4                       

Ex A-5                       

Ex A-6                       

Ex A-7                       

Ex A-8                       

Ex A-9                       

Ex A-10         

Ex A-11         

Ex A-12          

Ex A-13         

Ex A-14         

Ex A-15         

Ex A-16         

Ex A-17         

Ex A-18         

Ex A-19         

Ex A-20         

Ex A-21         

Ex A-22         

Ex A-23         

Ex A-24         

Documents marked for Opposite Parties :

Ex B-1            

Ex B-2            

Ex B-3            

Ex B-4            

Ex B-5            

Ex B-6            

Ex B-7            

Ex B-8            

Ex B-9            

Ex B-10          

Ex B-11          

Ex B-12          

Ex B-13          

Ex B-14          

Ex B-15          

Ex B-16          

Ex B-17          

Ex B-18          

Ex B-19          

1)PRESIDENT 

2)      MEMBER 

*pnr

UP LOAD – O.K.