Company told
to pay compensation
Tribune
News Service
CHANDIGARH, July 28
The UT Consumer Disputes Redressal Forum -II has
imposed costs and compensation of Rs 10,000 on Tata Tea
Ltd and Tata Share Registry Ltd for their failure to
return a share certificate to the holder for a period of
over seven years.
In his complaint filed
before the Forum, Lt-Col. Ranbir Singh Bawa had stated
that he holds 50 shares of Tata Tea and Tata Share
Registry. He had lost the share certificate in the year
1990 on his visit to the office of the Unit Trust of
India (UTI) at Bombay. He got to know of this when he
received a letter from Tata Share Registry Ltd in 1991
informing him that the said share certificate had been
lodged with the company for transfer in favour of UTI
without there being any transfer deed. He further
contended that he through a registered letter dated
November 18, 1991, told the opposite party that he had
never sold these shares to UTI and since the certificate
had been lost by him, they should be returned to him. But
despite reminders and repeated visits, no action was
taken.
Meanwhile, he received a
letter dated March 27, 1996, written by Tata Share
Registry Ltd to the UTI asking it to produce the copy of
the contract note or any other document as evidence of
purchase of shares by UTI within 21 days. The UTI was
also informed that the complainant had been pressing for
the return of his shares as these were in his name.
However, neither did UTI respond to this letter nor did
the opposite party take any further action.
In its reply, Tata Share
Registry Ltd said that the complainant had neither lodged
an FIR nor informed the parties concerned about the loss
of the share certificate. They further maintained that
they were not in a position to return the original share
certificate to the complainant as the UTI had sent
indemnity bonds along with an affidavit. They in turn
raised objections that the complaint is not maintainable,
that the complaint is barred by time and that the Forum
had no local jurisdiction in the matter.
The Forum bench
comprising its president, Mr R.P Bajaj, and members, Mr
H.S Wali and Mrs Kamlesh Gupta, observed that both
parties admitted that the complainant held 50 shares of
Tata Tea Ltd. These shares still stood in his name as UTI
which lodged the share with the opposite party for
transfer in its favour has not so far produced any
evidence, much less the requisite transfer deed for the
transfer of the shares in its name in spite of the fact
that the matter was hanging fire for more than seven
years. Therefore, the case of the complainant supported
by his affidavit that he had lost these shares had to be
accepted.
They held that the
complainant being the holder of these shares is the
person entitled to the custody of these shares. The
original shares, however, had come to the charge of UTI
with the request for transfer. The party asking for the
transfer had failed to produce any proof of transfer in
its favour, the opposite party therefore has no option
but to return those shares to the original holder.
They further held the
parties guilty of deficiency in services as a long time
had elapsed and they had not been able to return those
shares to the complainant. The objection of limitation
was rejected by observing that the cause of action
accrued to the complainant on March 27, 1996, when the
opposite party wrote to the UTI asking it to furnish
proof of transfer of shares in its favour within 21 days.
The parties had failed to take action in the matter even
after the lapse of 21days stipulated in the letter dated
March 27. Computing the period of limitation from this
date the complaint filed in October, 1996, is well within
the limitation period.
The second objection
regarding lack of jurisdiction was overruled by observing
that the Consumer Protection Act had been enacted for the
benefit of the consumers and its provisions, therefore,
needed to be constructed liberally so as to protect the
interest of the consumer. Further, the law permits the
institution of the complaint at a place where the
opposite party is carrying on business.
While allowing the
complaint, the forum directed the parties to pay Rs
10,000 as consolidated costs, including compensation, for
having caused harassment to the complainant for a long
period. They further directed them to return the share
certificate to the complainant and allow him all other
consequential benefits that have accrued to him and have
remained unpaid.
Bond scheme : The
UT Consumer Disputes Redressal Forum -I has directed
Hindustan Financial Management to pay the due maturity
amount of Rs 20,000 to a complainant along with interest
at the rate of 12 per cent per annum.
In her complaint, Mrs
Promila Anand had stated that the company had issued a
bond scheme offering 23.42 per cent interest for a period
of 17 months and 29 days. She had in response to the
scheme purchased eight bonds for a sum of Rs 14,800 on
September 4, 1996, which were to mature on March 3, 1998.
She had further alleged that in discharge of its
liability, the company issued a post dated cheque of the
amount of Rs 20,000 but the same was dishonoured due to
non-availability of funds in the company's account.
The complainant was
forced to lodge this complaint when despite several
attempts she failed to get the due maturity amount
released.
The bench comprising its
President, Mr H.C Modi, and members, Mr R.K Behl and Ms
Shashi Kanta, directed the company to pay a compensation
of Rs 1,000, besides releasing the due amount of Rs
20,000 to the complainant. The company were further
directed to make these payments within 30 days.
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