CONSUMER DISPUTES REDRESSAL FORUM-II
Udyog Sadan, C-22 & 23, Qutub Institutional Area
(Behind Qutub Hotel), New Delhi-110016.
Case No. 733/2008
Sh. Gautam Kumar Ghosh
R/o 53-B, 1st Floor,
Pocket-A, Dilshad Garden,
Delhi-110095 ……Complainant
Versus
1. M/s Jai Prakash Associates Ltd.
JA-House
63, Basant Lok, Basant Vihar,
New Delhi-110057.
Present Address: Sector-128, NOIDA-20130 (U.P.)
2. Sh. Goutam Kumar Ghosh,
S/o Sh. Gopal Chandra Ghosh,
Village & P.O. Nayabast,
Distt.-Midnapore,
West Bengal-721257
3. M/s East India Securities Ltd.
3rd Floor, Merchantile Building,
Depository Participant of NSDL,
10/1D Lal Bazar Street,
Kolkata-1 ……Opposite Parties
Date of Institution : 05.11.08 Date of Order : 22.09.15
Coram:
Sh. N.K. Goel, President
Ms. Naina Bakshi, Member
O R D E R
Briefly stated, the case of the Complainant is that on 29.03.1996 the OP No.1 issued 100 equity shares, worth Rs.10/- each, folio No.346297 vide certificate No.101819 distinctive Nos. 57406808 to 57406907 to the complainant. He gave his permanent address to the OP No. 1 as Gautam Kumar Ghosh, Vill. P.O. Para Bazar, Distt. Hoogly, West Bengal-7121305 for the purpose of correspondence and issuance of share certificates. He received a letter dated 06.0.1997 from OP No.1 wherein it had been mentioned that the share certificate sent to him by registered post on 29.03.1996 had been received back undelivered and requested him to receive and acknowledge the same. Thereafter, he received the original certificate through registered post at the given address. The Hon’ble High Court of Allahabad, vide its order dated 10.03.2004, sanctioned a scheme for amalgamation of the OP company. M/s Jai Prakash Industries Ltd. amalgamated with M/s Jaypee Cement Ltd. now known as M/s Jai Prakash Associates Ltd. From the date of 13th April, 2004 onwards, OP No.1 started issuing new share certificates to the registered share holders of the erstwhile Jai Prakash Industrial Ltd in terms of the order of Hon’ble Allahabad Court. But when he did not receive new share certificates or any other communication from OP No.1, then he lodged a complaint before the competent authority of OP No.1 vide his letter dated 30.11.2005 for non receipt of 100 nos. of shares of Jai Prakash Associates Ltd. which were issued in lieu of 100 nos. of shares of Jai Prakash Industries Ltd. He further requested to issue 100 nos. of shares as early as possible at present address i.e. Gautam Kumar Ghosh, 57, 1st Floor, Pocket-A, Dilshad Garden, Delhi-110095 and he also enclosed the photocopy of original share certificates to OP No.1. He received a letter dated 02.12.2005 from OP No.1 wherein it had been stated that the new share certificates No.72671 were dispatched to him vide R. L. No.70941 dated 13.04.2004 at his address available on company’s record. He wrote a letter dated 13.12.2005 informing the OP No.1 that he did not receive any such share certificate as stated in the letter dated 02.12.2005. Complainant has further stated that he received another letter dated 15.12.2005 from OP No.1 in response to his letter dated 13.12.2005 wherein it had been stated that:-
“We will not be able to change your address as signature of share holder does not tally with the specimen signature available in our record. We will not take any action of your letter due to signature mismatch.”
Complainant has stated that instead of taking the matter seriously by higher authority in the meeting of Board of Directors of the Company, the OP No.1 preferred to write a letter to him stating that the share certificates had already been allotted and dispatched to him in the month of April 2004, in lieu of 100 shares held by him in erstwhile Jai Prakash Industries Ltd. and he had got dematerialized the same on 19.06.2004. He again brought to the knowledge of OP No.1 that he had never received the new shares as mentioned in his various letters but OP No.1 neither enquired about the matter nor took any step to safeguard his interest even though he had also given his DEMAT Account No.42135213 with ICICI DP. I.D. No.302902 for verification and for their satisfaction. OP No.1 vide its letter dated 12.05.2006 informed him that the new share certificates of 100 nos. of equity shares had been sent to Mr. Gautam Kumar Ghosh, Vill. P.O. Nava Basti, Distt. Hoogly, West Bengal-721257 in the month of April 2004. He immediately sent a letter dated 12.05.2006 to OP No.1 and stated that he had never given any application or made any correspondence with regard to change of address. He also clarified that his permanent address is at Vill.-P.O. Para Bazar, Disstt. Hoogly, West Bengal-7121305 which was already in the record of OP No.1 as they had sent various letters including the share certificates of Jai Prakash Industries at this address. He sent several letters and made verbal requests to OP No.1 that he had not received share certificate No.101819 issued against the erstwhile Jai Prakash Industries Ltd., allotted one equity share Rs.10/-at par in Jai Prakash Industries Ltd. but he had not received any information from OP No.1. OP No.2 vide letter dated 19.12.2007 acknowledged the complaint and assured that if the complaint is not resolved within ground reasonable time they will send periodical reminders to the Company. Thereafter, he requested the OP No.2 vide letters dated 05.02.08, 20.05.08 & 30.06.08 to take appropriate action for issuance of 100 nos. of equity share of OP No.1 but unfortunately no action has been taken in this regard. OP No.1 vide a valid resolution sub divided every equity share of worth Rs.10/- into five share of worth Rs.2/-. In the financial year 2007-08, the share value of the OP No.1 was Rs.500/-. Conduct of OP No.1 in dealing with his bonafide claim is highly deficient in nature. OP No.1 knowing fully well that the new share certificate has not been received by him they tried to harass him. Complainant has prayed as under:-
- To direct the OP-1 either to issue 100 nos. of new equity share of book value worth Rs.10/- or 500 nos. of equity share of book value worth Rs.2/- of Jai Prakash Associate Ltd or pay a sum of Rs.2,50,000/- towards compensation for causing loss and injury to the Complainant.
- To direct the OP-1 to pay interest @ 15% per annum on the compensation amount from the date of issuance of share certificate.
- To direct OP-I to pay litigation charges and compensation for harassment.
OP No.1 in its written statement has stated as follows:
“It is stated that 100 equity shares of Rs. 10/- each (fully paid up) of JIL having above particulars appear to have been lodged by the complainant with OP-1 sometime in January, 1996 for transfer in his name which were inadvertently transferred in folio no. 346297 pertaining to another shareholder having identical name i.e. Sh. Goutam Kumar Ghosh s/o Sh. Gopal Chandra Ghosh r/o Village & P.O. Nayabasat, Distt. Midnapore, W.Bengal-721257 and duly transferred shares were dispatched to him at Village & P.O. – Nayabasat, Distt.-Hoogly, W.Bengal-721257 on 29.03.1996. It is further stated that these shares were received ‘undelivered’ by OP-1 and on receipt of a complaint, the same were re-dispatched to the Complainant at Village & PO Porabazar, Distt. Hoogly, W.Bengal-712305 vide letter dt. 06.01.1997 (Copy of letter dt. 06.01.1997 is enclosed and marked as Annexure-I).”
It is further stated as under:-
“It is stated that as per the ‘Scheme of Amalgamation’ of JIL with M/s Jaypee Cement Ltd. as having been sanctioned by the Hon’ble High Court of judicature at Allahabad in March, 2004, 100 shares of Rs. 10/- each (fully paid up) of JAL were issued and dispatched to Sh. Goutam Kr. Ghosh at vill. & PO Nayabasat, Distt. Hoogly, W.Bengal-721257 on 13.4.2004 vide R.L No. 70915 which appear to have been delivered and received by Sh. Goutam Kumar Ghosh of Distt. Midnapore for the reasons best known to the Complainant, the recipient and the postal authorities. It is further stated that on receipt of a complaint, O.P.-1 vide its letter dated 02.12.2005 informed the Complainant of having dispatched 100 shares at JAL at his address at Distt. Hoogly which got dematerialized by the holder, Sh. Goutam Kr. Ghosh of Distt. Midnapore on 19.6.2004 and no action appears to have been taken by the Complainant to recover his shares from Sh. Goutam Kr. Ghosh of Distt. Midnapore instead this complaint (Copies of R.L. No. 70915, letter dt. 02.12.2005 and ‘Dematerialisation Request Form’ no. 988936 issued by East India Securities Ltd. bearing Client Id no. 10043018 are enclosed and marked as Annexure-II (colly).”
It is also stated as under:-
“It is vehemently denied that the Complainant is entitled to be compensated either by issuing 500 shares of JAL of Rs. 2/- each (after split) or by giving Rs.2,50,000/- alongwith interest @ 15% p.a. by OP-1 Company. It is stated that immediately after receiving notice under sec. 13 of the Consumer Protection Act, 1986 from this Hon’ble Forum, the matter was investigated and O.P.-1 came to know that the said shares were inadvertently transferred in folio no. 346297 pertaining to one Sh. Goutam Kr. Ghosh s/o Sh. Gopal Chandra Ghosh r/o Village & P.O.-Nayabasat, Distt., Midnapore, W.Bengal-721257 and were dispatched to him by R.L.No. 70915 dt. 13.4.2004 at Village & P.O.-Nayabasat, Distt.-Hoogly, W.Bengal-721257 but delivered and received by Sh. Goutam Kr. Ghosh at Distt. Midnapore which were got dematerialised by him in Client Id No. 10043018 on 19.6.2004 and this fact was brought to the notice of the Complainant, Sh. Goutam Kr. Ghosh of Distt. Midnapore and his Depository Participant, M/s East India Securities Ltd. by P.O.-1 vide its letter dt. 17.12.2008. It is further stated that Sh. Goutam Kr. Ghosh of Distt. Midnapore has illegally dematerialized 100 shares of Rs. 10/- each belonging to the Complainant and he may be directed to deliver 500 shares of Rs. 2/- each to the Complainant as he is guilty of Criminal Breach of Trust and Mis-appropriation of property u/s. 405 & 403 of I.P.C. and also compensate the complainant for all the trouble and harassment suffered by the complainant. (Copy of the letter dt. 17.12.2008 is enclosed and marked as Annexure-IV).”
It is prayed that the complaint be dismissed.
The order dated 28.11.11 passed by our predecessors reads as under:-
“733/08
28.11.11.
Pr. Mr. Shiv Nath Counsel for Complainant
Mr. M. Mohani Counsel for OP
There is no possibility for settlement
Both the parties have filed an application for impleading of Gautam Kr. Ghosh and M/s East India Securities as OP-2 & OP-3 and therefore, this application is allowed.
Memo of parties be placed on record.
Let the dasti notice to OP-2 & 3 be issued for 05.04.2012.
Sd/- Sd/-”
Vide order dated 11.01.13, the OP No. 2 & 3 were proceeded exparte.
Complainant did not file rejoinder qua the written statement submitted by OP No.1.
Complainant filed his affidavit in evidence and another exparte evidence by way of affidavit in respect of OP No.2 & 3. Affidavit of Sh. T.D. Joshi, AGM (Shares) has been filed on behalf of OP-1.
Written arguments have been filed on behalf the Complainant and OP No.1.
We have heard arguments on behalf of OP No.1 and have also gone through the file very carefully.
Shares were inadvertently transferred in folio No.346297 pertaining to one Sh. Gautam Kr. Ghosh S/o Gopal Chandra Ghosh R/o Vill. & PO Nayabasat, District – Midnapore, West Bengal-721257 and were dispatched to him by RL No.70915 dated 13.04.2004 at Vill. & PO Nayabasat District- Hoogly, West Bengal-721257. The same were received by Sh. Goutam Kr. Ghosh at District Midnapore which were got dematerialized by him in client ID No.10043018 on 19.06.204 and this fact was brought to the notice of the Complainant. Inadvertence on the part of office of OP-1 in sending the share certificates of the complainant to wrong person at Distt. Midnapore cannot be imputed to the complainant because the complainant had no role to play in the matter. It is the OP-1 who must suffer for the fault/inadvertence on the part of its concerned officers/officials. It is not the duty of the complainant to do correspondence with a person residing at Midnapore or to ask him to make good the loss suffered by the complainant for the fault of the officials of the OP-1. It is the OP-1 who must have taken proper action against the person in whose name share certificates of the complainant had been sent and who had got the same dematerialized in his account on 19.6.2004. Therefore, without burdening our order with further discussion, we hold that the OP-1 committed deficiency in service by not sending the share certificates of the complainant to the complainant.
In view of above discussion, we allow the complaint and direct the OP-1 to issue 100 nos. of equity shares of book value worth Rs. 10/- or 500 nos. of equity shares of book value worth Rs. 2/- of OP-1 or to pay an amount of Rs. 2,50,000/- along with interest @ 7% p.a. from 19.6.2004 till realization. We also direct the OP-1 to pay Rs. 10,000/- as compensation towards mental agony and harassment and Rs. 10,000/- towards cost of litigation to the complainant. The OP-1 shall comply with the order within 30 days from the date of receipt of copy of this order.
Let a copy of this order be sent to the parties as per regulation 21 of the Consumer Protection Regulations. Thereafter file be consigned to record room.
Announced on 22.09.15.
(NAINA BAKSHI) (N.K. GOEL) MEMBER PRESIDENT
22.9.2015
Present – None.
Vide our separate order of even date pronounced, the complaint is allowed. OP-1 is directed to issue 100 nos. of equity shares of book value worth Rs. 10/- or 500 nos. of equity shares of book value worth Rs. 2/- of OP-1 or to pay an amount of Rs. 2,50,000/- along with interest @ 7% p.a. from 19.6.2004 till realization. We also direct the OP-1 to pay Rs. 10,000/- as compensation towards mental agony and harassment and Rs. 10,000/- towards cost of litigation to the complainant. The OP-1 shall comply with the order within 30 days from the date of receipt of copy of this order. Let the file be consigned to record room.
(NAINA BAKSHI) (N.K. GOEL) MEMBER PRESIDENT
