Chandigarh

DF-II

CC/150/2020

Joginder Singh Palahyia - Complainant(s)

Versus

M/s Karvy Fintech Private Limited, (Registrar & Transfer Agents) - Opp.Party(s)

Devinder Kumar Adv.

17 Dec 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II

U.T. CHANDIGARH

 

 

 

Consumer Complaint No.	:	CC/150/2020
Date of Institution	:	28/02/2020
Date of Decision	:	17/12/2024

 

 

Joginder Singh Palahyia son of Late Sh. Fauja Singh, aged 77 years, resident of H. No. 395, Sector 15-A, Chandigarh.

                                ...  Complainant

V E R S U S

1.M/s Karvy Fintech Private Limited, (Registrar & Transfer Agents) Regd. Office: Karvy House, 46, Avenue-4, Street No.1, Banjara Hills, Hyderabad-500 032 through its Registrar.

2.M/s Sterlite Power Transmission Limited, 4th Floor, Godrej Millennum, 9 Koregaon Road, Pune-411 001 through its Managing Director.

3.M/s Sterlite Technologies Limited, Regd. Office: E-1, MICD, Industrial Area, Waluj, Aurangabad-431 136 through its Managing Director.

4.Security Exchange Board of India, SCO No.127-128, First Floor, Sector 17-C, Chandigarh through its Deputy General Manager.

…. Opposite Parties

 

 

BEFORE:
	SHRI AMRINDER SINGH SIDHU	PRESIDENT
	SHRI BRIJ MOHAN SHARMA	MEMBER

 

ARGUED BY:
	Sh. Devinder Kumar, Counsel for complainant
	Sh. Atul Goyal, Counsel for OPs 1 & 3 (Defence of OPs 1 & 3 already struck off)
	OP-2 ex-parte
	Sh. Manan Jain, Counsel for OP-4

       

 

ORDER BY AMRINDER SINGH SIDHU, M.A.(Eng.),LLM,PRESIDENT

1.        The complainant has filed the present consumer complaint alleging that his father, Sh. Fauja Singh had executed a will dated 30.3.1984 (Annexure C-1) with regard to his immovable property and his ambassador car. Father of the complainant initially purchased shares from M/s Sterlite Industries (India) Limited and on 1.4.1993 it floated new companies in the name of OPs 2 & 3 whose shares/ debentures were finally allotted.  Father of the complainant held 125 shares of M/s Sterlite Power Transmission Limited and 625 shares of M/s Sterlite Technologies Limited. Thereafter, father of the complainant executed another Will dated 3.10.1997 in which complainant was specifically mentioned as legal heir and owner of shares purchased after 29.3.1984. After death of Sh. Fauja Singh on 29.3.2008, complainant applied for transfer of shares and submitted all the required documents with OP-1 after which some correspondence ensued between the parties. The complainant vide letter dated 12.7.2019 (Annexure C-11) sent the required documents to OP-1 alongwith one circular dated 15.9.2016 (Annexure C-12) issued by SEBI whereby no objection affidavit from the other legal heirs was not required for transfer of shares. However, without considering the aforesaid letter, OPs again demanded the same documents. Alleging that the aforesaid acts amount to deficiency in service and unfair trade practice on the part of OPs, complainant has filed the instant consumer complaint seeking transfer of shares/debentures in his name from the name of his deceased father alongwith compensation and litigation expenses.
2.        Since OPs 1 & 3 failed to file their written version within the stipulated period granted by this Commission, as provided under Section 38 of the Consumer Protection Act, 2019 mandated by Hon’ble Supreme Court of India in case titled as New India Assurance Co. Ltd. Vs. Hilli Multipurpose Cold Storage Pvt. Ltd., AIR 2016 SC 86 and M/s Daddy’s Builders Pvt. Ltd. & Anr Vs. Manisha Bhargava & Anr., II (2021) SLT 201, their defence was ordered to be struck off vide order dated 7.2.2022.
3.        Despite due service, OP-2 did not put in appearance before this Commission and accordingly it was proceeded against ex-parte vide order dated 21.9.2021.
4.        In its written version OP-4/SEBI averred that it is performing statutory functions assigned to it under the Securities and Exchange Board of India Act, 1992.  Further by relying upon various judgments/orders it is averred that performance of statutory functions cannot be construed as rendering of any services for consideration in terms of the aforesaid Act as no fee had been charged by SEBI from investors. However, it is averred that if there was any flaw in the documents of the complainant, he could not ignore the process under the garb of circular issued by the answering OP. The remaining allegations have been denied being false. Pleading that there is no deficiency in service or unfair trade practice on its part, OP-4 prayed for dismissal of the consumer complaint.
5.        Complainant chose not to file rejoinder to the written version of OP-4.
6.        Contesting parties led evidence in support of their case.
7.        We have heard the learned Counsel for the parties and have gone through the documents on record, including written arguments.
8.        It is observed from the record that the grievance of the complainant in the instant consumer complaint is that despite complying with the requirements of the OPs, after the death of his father, Sh. Fauja Singh, they failed to transfer/transmit the shares/debentures held by him in the name of complainant. 
9.        In support of his case, complainant has placed reliance on the Will dated 3.10.1997 (Annexure C-4) and the circular dated 15.9.2016 (Annexure C-12) to contend that the OPs were not justified to ask for affidavit from other legal heirs.  On the other hand, the defence of OPs is that the complainant could not ignore the process under the garb of circular issued by the OPs.
10.        In view of the foregoing factual position, it would be apposite to go through the aforesaid Will as well as the circular in order to determine the controversy between the parties.
11.        The relevant portion of circular (Annexure C-12) is reproduced below for ready reference :-

“2. For securities held in single name without a nominee, the following additional documents may be sought:

a.) Affidavit from all the legal heirs made on appropriate non judicial stamp paper - to the effect of identification and claim of legal ownership to the securities.

Provided that in case the legal heir(s)/claimant(s) is named in the succession certificate or probate of will or will or letter of administration, an affidavit from such legal heir/claimant(s) alone would be sufficient.”

Similarly, relevant portion of the Will (Annexure C-4) is also reproduced below for ready reference :-

        “Now with my full senses and sound mind and without any pressure I execute this Will that I have purchased plot after the execution of the previous Will and U.T.I. shares purchased after 29.3.1984 i.e. after execution of the above said Will and I desire that after my death the said plot as well as UTI shares shall go to my son Sh. Joginder Singh…….”

 

12.        No doubt, the complainant by relying on the Will dated 3.10.1997 (Annexure C-4) in his favour has  contended that only an affidavit from him was suffice, but importantly even through the aforesaid Will the late father of the complainant had only bequeathed “UTI shares” and not “all shares”. 
13.        Pertinently, in the instant consumer complaint, the grievance of the complainant is qua shares/debentures of “Sterlite Power Transmission Limited” and “Sterlite Technologies Limited” and certainly not “UTI shares”.  Hence, complainant cannot take advantage of the Will dated 3.10.1997 (Annexure C-4) to get the said shares/ debentures transferred/transmitted in his favour after the demise of his father. Resultantly, the Will dated 3.10.1997 (Annexure C-4) and the circular (Annexure C-12) are of no help to the cause of the complainant and the OPs vide letters 28.8.2019 and 10.10.2019 (Annexure C-15 & C-16) had rightly asked the complainant to submit the no objection affidavit etc. from other legal heirs and it was the complainant who did not comply with the same. Hence, it is safe to hold that the complainant has miserably failed to prove any deficiency in service or unfair trade practice on the part of OPs. 
14.        In view of the above discussion, the present consumer complaint deserves to fail and the same is hereby dismissed, leaving the parties to bear their own costs.
15.        The pending application(s) if any, stands disposed of accordingly.
16.        Certified copy of this order be sent to the parties, as per rules. After compliance file be consigned to record room.

ANNOUNCED 17/12/2024 hg	[AMRINDER SINGH SIDHU] PRESIDENT
	[BRIJ MOHAN SHARMA] MEMBER