MONOPOLIES AND RESTRICTIVE TRADE
PRACTICES COMMISSION, NEW DELHI
Hon’ble Mr. Justice A.N. Divecha,
Chairman & Mr. R.K. Anand, Member
RAKESH SONI—Applicant
versus
MESSRS AKASH ELECTRONICS AND SOFTWARE—Respondent
Compensation Application No. 34 of 1998—Decided on 23.4.1999
FALSE AFFIDAVIT - FILING - SECTION 340 OF THE CODE OF CRIMINAL PROCEDURE, 1973 - SECTION 191, 193 OF THE INDIAN PENAL CODE, 1860 - REGULATION 77 OF THE MONOPOLIES AND RESTRICTIVE TRADE PRACTICES COMMISSION REGULATIONS, 1991 - SECTION 12B OF THE MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 - CONSUMER PROTECTION ACT, 1986 - The court held that filing a false affidavit is an offence punishable under Section 193 of the Indian Penal Code, 1860 and that the Monopolies and Restrictive Trade Practices Commission (MRTPC) has the power to direct an officer to launch prosecution for such an offence under Section 340(3)(a) of the Code of Criminal Procedure, 1973.
Fact of the Case:
The applicant filed a compensation application under Section 12B of the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) for claiming compensation for a defective computer system purchased from the respondent. The application was supported by an affidavit declaring that no application had been filed before the MRTPC or the Consumer Forum under the Consumer Protection Act, 1986 (C.P. Act) on the same subject-matter. The respondent filed a reply and resisted the compensation application on the ground that the applicant had already filed a complaint application before the Consumer Forum on the same subject-matter and cause of action.
Finding of the Court:
The court found that the applicant had filed a false affidavit to the effect that he had not approached the Consumer Forum under the C.P. Act on the same subject-matter and cause of action. The court also found that the applicant had filed the compensation application in his name styling himself as a partner of Messrs Natraj Motors whereas the complaint application before the Consumer Forum under the C.P. Act was shown to be by Messrs Natraj Motors. The court held that this attempt on the part of the applicant prima facie showed his malicious intention to mislead the MRTPC.
Issues: Whether the applicant had filed a false affidavit to the effect that he had not approached the Consumer Forum under the C.P. Act on the same subject-matter and cause of action.
Ratio Decidendi: The court held that filing a false affidavit is an offence punishable under Section 193 of the Indian Penal Code, 1860 and that the MRTPC has the power to direct an officer to launch prosecution for such an offence under Section 340(3)(a) of the Code of Criminal Procedure, 1973. The court also held that the applicant's attempt to mislead the MRTPC by filing the compensation application in his name styling himself as a partner of Messrs Natraj Motors whereas the complaint application before the Consumer Forum under the C.P. Act was shown to be by Messrs Natraj Motors was a malicious attempt to abuse the process of law.
Final Decision: The court allowed the respondent's application under Section 340 of the Code of Criminal Procedure, 1973 and directed the Joint Director (Legal) of the MRTPC to launch a complaint in writing before the competent Court charging the applicant with an offence punishable under Section 193 of the Indian Penal Code, 1860.
Mr. Justice A.N. Divecha, Chairman— The respondent has moved one application under Section 340 of the Code of Criminal Procedure, 1973 (the Cr.P.C. for brief) for taking an action against the applicant for filing a false affidavit to the effect that he has not approached the Forum created under the Consumer Protection Act, 1986 (the C.P. Act for brief) on the same subject-matter and on the same cause of action. The applicant has filed his reply and has resisted this application on several grounds. The respondent has filed its rejoinder thereto.
2. It would be quite proper to look at the factual backdrop giving rise to this application. The applicant has filed this compensation application under Section 12B of the Monopolies and Restrictive Trade Practices Act, 1969 (the MRTP Act for brief) for claiming compensation in the sum of Rs. 3,15,000/- with interest at the rate of 24% per annum from the date of the application till payment. Regulation 77 of the Monopolies and Restrictive Trade Practices Commission Regulations, 1991 (the Regulations for brief) requires an application under Section 12B of the MRTP Act to be supported by an affidavit inter alia declaring that no application has been filed by the applicant either before this Commission or before the Forum created under the C.P. Act in respect of the same subject-matter. An affidavit to that effect has been filed alongwith this application as required by Regulation 77 of the Regulations. According to the respondent, the affidavit accompanying the present compensation application in that regard is false.
3. It may be noted that the compensation application is based on the charge of adoption of and indulgence in unfair trade practices on the part of the respondent qua purchase of one computer system by the applicant from the respondent under invoice No. 222 dated 28th September, 1996 for Rs. 1,15,000/-. The subject-matter of the compensation application is thus the computer system purchased by the applicant from the respondent. The cause of action for filing the compensation application is supply of a defective computer system. The application is filed by the applicant, named, Rakesh Soni, as a partner of Messrs Natraj Motors. The invoice annexed to the compensation application shows the name of the buyer Messrs Natraj Motors. It thus becomes clear that the computer system in question was purchased by the partnership firm in the name and style of Messrs Natraj Motors.
4. The respondent has filed its reply and has resisted the compensation application on various grounds. It has inter alia contended that the respondent has moved the Consumer Forum at Delhi under the C.P. Act on the same subject-matter and on the same cause of action and the complaint application before the Consumer Forum has been registered as Complaint Case No. 2399/97 and it is pending before District Forum-II. It has further stated that the said complaint application before the Consumer Forum came up for hearing before the competent Consumer Forum on 18th April, 1998 and was then fixed for further proceeding on 24th November, 1998. According to the respondent, the applicant has filed a false affidavit to the effect that no Consumer Forum under the C.P. Act has been moved by or on behalf of the applicant before this Commission. The respondent has, therefore, moved this application under Section 340 of the Cr.P.C. for taking an appropriate action against the applicant for filing such false affidavit.
5. In his reply to the application under Section 340 of the Cr.P.C, the applicant has come out with a case that he had no knowledge about the pendency of any proceeding filed by the respondent when the application for compensation alongwith the affidavit was filed in this Commission. In his reply, the applicant has clearly and categorically stated that he has not suppressed anything from this Commission and has rightly filed the application and the affidavit.
6. In support of its application the respondent has bro
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