State Consumer Disputes Redressal Commission

West Bengal

BHABANI BHAVAN (GROUND FLOOR)

31, BELVEDERE ROAD, ALIPORE

KOLKATA – 700 027



S.C. CASE NO. : EX/05/2007



DATE OF FILING : 02.04.2007 DATE OF FINAL ORDER: 09.04.2009


DECREE HOLDER

Smt. Neerja Rateria

Legal heir and representative of

Purushottam Das Jalan (since deceased)

Residing at No. 5, Abdul Rasul Avenue

Kolkata-700 026.



JUDGEMENT DEBTOR

1. UTI MUTUAL FUND

having its office at No. 29, Netaji Subhas Road

Kolkata-700 001.

2. M.N.Dastur & Co. Ltd.

having its office at No. P-17, Mission Row Extension

Kolkata-700 001.

3. The Calcutta Stock Exchange Association Ltd.

having its office at No. 7, Lyons Range

Kolkata-700 001.

4. UTI Trusties (P) Ltd.

having its office at No. 29, Netaji Subhas Road

Kolkata-700 001.

5. UTI Investors Services Ltd.

having its office at No. 29, Netaji Subhas Road

Kolkata-700 001.

6. M/s. Karvy Computershare Pvt. Ltd.

‘Karvy’ House,

46, Avenue 4, Street No. 1,

Banjara Hills

Hyderabad-500 034.



BEFORE : MEMBER : MR. P.K.CHATTOPADHYAY

MEMBER : MR. S.COARI



FOR THE PETITIONER / APPELLANT : Mr. Morarka, Ld. Advocate

FOR THE RESPONDENT / O.P.S.: Mr. B.Sinha, Ld. Advocate (JDr.2)

Mr. A.K.Ghosh, Ld. Advocate(JDr.6)





: O R D E R :


MR. P.K.CHATTOPADHYAY, LD. MEMBER

This Execution Case U/Ss 25 & 27 of Consumer Protection Act, 1986 arose out of this Commission’s Case No. SC/47/O/1996 where the Hon’ble State Commission passed its judgement and order dt. 11.07.2006 as under :-

“The complaint be allowed on contest against O.P.Nos. 1,2,4,5 & 6 with cost of Rs. 1,000/- and be dismissed against the OP No. 3. OP Nos. 1,2,4,5 & 6 be directed to get the Master Shares transferred in the name of O.P.No. 3 (C.S.E.A.) or the Complainant as it may be convenient for them to do. Those O.Ps be further directed to send the Rights and Bonus Shares along with the dividends which we have mentioned above in favour of the Complainant. The O.Ps shall also pay a fixed sum of Rs. 10,000/- as compensation for the hazards, harassment and mental agony caused to the Complainant during the relevant period. The O.Ps shall comply with this order within 60 days from the date of communication of this order failing which the Complainant will be at liberty to put the order into execution and also the awarded amount shall carry interest @ 8% p.a. for the period of default.”

The DHr. namely, Smt. Neerja Rateria since filed this Execution case stating inter alia that the judgement and order passed in Case No. SC/47/O/1996 has not been complied with to the extent that a sum of Rs. 6,93,643/- was since liable to be paid by the JDrs along with costs and incidentals appertaining thereto. The break-up of the aforesaid sum of Rs. 6,93,643/- was as under :-

i) Value of 11679 Master Share Rs. 4,08,800/-

ii) Dividend till 2005 Rs. 2,38,806/-

iii) Dividend till 2006 Rs. 35,037/-

iv) Cost Rs. 1,000/-

v) Compensation Rs. 10,000/-

----------------------------

Rs. 6,93,643/-

----------------------------

The DHr accordingly prayed for appropriate action towards payment of the sum aforesaid and for further orders as deemed fit.

The Ops/JDrs 1,2,4,5 & 6 entered appearance and denied and disputed the said prayer of the DHrs stating inter alia that the amount of dividend for Rs. 2,64,678.50 including the dividend amount of Rs. 35,057/- for the year 2006 was already paid when an amount of Rs. 9,165/- was deducted towards payment of tax at source, as per provisions of Income Tax applicable at the given point of time. It was further submitted that in terms of the State Commission’s order, penal interest at 8% was also paid, when given payments were made in two tranches. Contending that the DHr’s claim for Rs. 4,08,800/- is untenable because the same was considered as value of 11769 units when it was pointed out that the order of the Hon’ble Commission was for transfer of the units in favour of the DHr and not for payment of value of those units and the transfer having been effected the DHr has no further claim on the said units. Accordingly, the JDrs aforesaid prayed for dismissal of the Execution Petition, the decretal dues having been paid/delivered in full.

The matter was heard from respective sides when a number of citations were placed. In course of argument the DHr pointed out that interest was directed to be paid on the awarded amount for the period of default. Claiming that dividend declared earlier and not paid in time comes within the purview of awarded amount and also arguing that dividend becomes a debt from the date of declaration it was submitted that there was delay and default in payment of the amounts of dividend and interest thereon as accrued in terms of the judgement and order and accordingly the prayer in Execution Case should be treated as just, proper and reasonable.

We have carefully gone into the record and find that the JDrs have scrupulously paid the entire decretal sum to the DHr including interest component and effecting of transfer of units. The transfer of units are as in the judgement. An amount of compensation of Rs. 10,000/- and cost of Rs. 1,000/- has also been paid by the JDrs to the DHr. Therefore, on the component of the claims made in the Execution Petition in Item No. (i), i.e. value of given number of Master Shares was not paid simply because the judgement provided for transfer of the shares which were since done. On Item Nos. (ii) and (iii) namely, dividends in 2005 & 2006, the given amounts due in dividend stands paid. On the items of interest, cost and compensation, the same was also paid.

On the DHr’s submission that payment of interest on dividend of Master Shares for the year 1993-94 continued to be due is not tenable before us. This is firstly because in terms of the judgement and order, penal interest was due only for the period of default, i.e. only after 60 (sixty) days from the date of communication of the judgement and order and secondly, because an amount of compensation having been allowed in the judgement and order, both compensation and interest can not go together as was claimed by the DHr. From the payment record we find that in consonance with the judgement and order of this Commission payment of interest, cost and compensation have been made in full. The JDrs have also filed an affidavit to such purpose. Accordingly, we find that the decretal dues having been fully satisfied, the DHr and Applicant in Execution Case No. SC/Ex/05/2007, Smt. Neerja Rateria, has no further outstanding dues from the JDrs namely, UTI Mutual Fund & others and accordingly, the Execution case is disposed of on satisfaction of payment of decretal dues.



MEMBER MEMBER