R.D. GOYAL AND ANR. versus RELIANCE INDUSTRIES LTD.

R.D. GOYAL AND ANR. versus RELIANCE INDUSTRIES LTD.

Shares and debentures before allotment are not goods under Section 2(e) of the M.R.T.P. Act as it existed prior to the 1991 amendment; acts of inviting offer or issuing debentures do not amount to sale of goods or rendition of service under Section 2(r).

Parties
Appellant: R.D. Goyal; Appellant: Anup G. Choudhary; Respondent: Reliance Industries Ltd.
Jurisdiction
India
Judgment Date
20 November 2002
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeals dismissed
Legal Topics
Shares and Debentures, Definition of Goods, Monopolies and Restrictive Trade Practices, Interpretation of Statutes

Case Brief

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Parties

R.D. Goyal

Appellant

Anup G. Choudhary

Appellant

Reliance Industries Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Judgment

  1. 1 Whether shares or convertible debentures before allotment are goods under Section 2(e) of the Monopolies and Restrictive Trade Practices Act, 1969
  2. 2 Whether the issue of equity shares tied with debentures constitutes a restrictive trade practice under Sections 2(o)(ii), 33(l)(b) and 33(l)(g) of the M.R.T.P. Act
  3. 3 Whether the act of inviting applications for debentures amounts to providing services under Section 2(r) of the M.R.T.P. Act

Ratio Decidendi

Shares and debentures before allotment are not goods under Section 2(e) of the M.R.T.P. Act as it existed prior to the 1991 amendment; acts of inviting offer or issuing debentures do not amount to sale of goods or rendition of service under Section 2(r).

Court Disposition

Appeals dismissed

Orders

  • Judgment of the Commission upheld
  • No costs awarded