F.A.No.302 OF 2005 AGAINST C.D.NO.100 OF 1998 DISTRICT CONSUMER FORUM-I HYDERABAD

Between
Smt Kiran Latha Gupta
W/oKailash Chand Gupta
C/o Musaddilal Jewellers
Basheerbagh, Hyderabad-29

Appellant/complainant

          A N D

1.    International Travel House Ltd.,
Regd. Off: 21-D, Community
Center, Basant Lok, Vasanth Vihar
New Delhi-110 057, Rept by its
Managing Director

2.    ABC Computers Pvt Ltd.,
M-12(Market) Greater Kailash-II
New Delhi (India) 110048
Rep. by its Managing Director

                                                                    Respondents/opposite parties

Counsel for the Appellant               Sri P.Rameshwar Rao

Counsel for the Respondents         Sri P.Rajasripathi Rao           

QUORUM:      SRI SYED ABDHULLAH, PRESIDING MEMBER

                                                      &

                              SRI R.LAKSHMINARSIMHA RAO, MEMBER

         TUESDAY THE THIRTIETH DAY OF JUNE               

                                         TWO THOUSAND NINE

   Oral Order ( As per R.Lakshminarsimha Rao, Member)
***

          The appellant is the unsuccessful complainant in C.D.No.100 of 1998 on the file of District Forum-I, Hyderabad.  The appellant sought for direction against the respondents no.1 and 2 to pay an amount of Rs.30,000/- towards monetary loss, Rs.50,000/- towards compensation for mental torture besides a prayer for seeking transfer of share certificate and also for a direction for payment of dividend declared for the years 1994 – 1997 and damages for deficiency in service.

          The District Forum allowed the complaint of the appellant and directed the respondents to transfer the shares in the name of the appellant and also issue directions for payment of dividend declared for the years 1994-95, 1995-96 and 1996-97.  A direction was also issued to the respondent to pay an amount of Rs.3,000/- towards compensation and  Rs.2,000/- towards costs.

          Being aggrieved by the impugned order, the appellant preferred the appeal on the ground that the respondent no.2 detained the shared certificate under stop transfer instructions even though there was no order from any court.

          The point for consideration is whether there is any ground to interfere with the order passed by the District Forum?

          The respondent no.1 is a company under the companies Act 1956 and the respondent no.2 registrar of the respondent no.1 and dealing with the transfer of shares of the respondent no.1.  The appellant had purchased 100 shares of respondent no.1 company through Hyderabad Stock Exchange and sent the share certificate with duly executed transfer deed to the respondent no.2 for the purpose of effecting the transfer of shares.  The respondent no.2 effected the transfer of shares in the name of the appellant.  No share certificate was sent to the appellant.  The respondent no.2 addressed a letter dated 19.1.1996 to M.Gayatri Ram R/o Bhopal Madhya Pradesh and a copy of the letter was marked to the appellant and respondent no.1.  The appellant protested that he purchased the shares through recognized stock exchange and there was no order from any court prohibiting the sending of the share certificate to the appellant.  Through letter dated 3.2.1996 the respondent no.2 informed the appellant that 100 shares covered under certificate No.5192 were lying under stop transfer.

          The respondent no.1 company came up for rights issue in the year 1994.  The issue was closed on 19.8.1994.  The appellant addressed a letter to the respondent no.2 for issuing the rights application form and on 4.8.1994 the respondent no.2 informed the appellant that as the share certificate covered under Distinctive Nos.1843031 to 1843130 were under stop transfer, the composite rights application form was retained by them and that the issue of rights share certificate would kept in abeyance.

          Sec.113 of the Companies Act 1956 reads as under:

          S.113.  Limitation  of time for issue of certificate.-      (1) Every company, unless prohibited by any provision of law or of any order of any court, tribunal or other authority, shall, within three months after the allotment of any of its shares, debentures or debenture stock, and within two months after the application for the registration of the transfer of any such shares, debentures or debenture stock, delivery, in accordance with the procedure laid down in section 53, the certificates of all shares, debentures and certificates of debenture stocks allotted or transferred.

The respondent received Ex.A5 from M.Gayatri Ram requesting them to stop share transfer.  The appellant addressed letters Exs.A6 and A7 requested the respondent no.2 that as M. Gayatri Ram had not submitted any court order in support of his request to stop transfer and the appellant further requested the respondents to transfer the share certificate in her favour.  The appellant had purchased the shares pertaining to the respondent no.1.  The respondent no.2 received the share certificate and transfer deed from the appellant and effected the transfer of the shares in the name of the appellant.  However the respondent had stopped the share transfer relying upon the letter of M.Gayatri Ram in whose name Ex.A4 share certificate was issued.  Basing on the evidence on record and taking into consideration of the circumstances of the case, the District Forum has rightly ordered the respondents to transfer the shares in the name of the appellant and send the share certificate to her and also to pay dividend, compensation and costs.  We see no reason to interfere with the well reasoned order of the District Forum and as such we are inclined to dismiss the appeal.

          In the result the appeal is dismissed.  No costs.

                                                                                                                                                                                                PRESIDING MEMBER

                                                                               MEMBER

                                                                     Dated: 30.06.2009