Order-10.

Date-30/10/2015.

In this complaint Complainant Mrs. Paramjit Kaurby filing this complaint has submitted that op no.1 is the registrar of the op no.2 who sells its own shares in the market for profit at large and proforma op no.3 is a share broking firm who runs its’ business for purchasing and selling different shares of different companies for its’ customers.

Complainant purchased 500 ITC shares being no. 325461-465 through the proforma op no.3 from the Investment Corporation of India Ltd. and thereafter later in 1994 op no.2 issued 500 bonus shares against the original shares.Complainant sold the original shares being no. 325461 to 325465 without transferring and changing her name and it is necessary to mention that prior the dematization system came into action it was normal practice of the share related people to sell out their shares or purchase shares without getting the name transferred as in the instant case.

Op no.2 sometimes in the year 1994 issued 500 bonus shares being nos. 1892961 to 1892965 against the original shares being nos. 325461 to 325465 which were directly sent to the recorded seller of the complainant.On receiving the information of the bonus shares the complainant on several occasion requested the proforma op no.3 to handover the bonus shares to the complainant.But after several requests the proforma op no.3 handed over the bonus shares to the complainant but without the share transfer deed.

By a letter dated 09.01.2002 complainant sent a notice through her Ld. Advocate requesting the op nos.1 & 2 to transfer the shares in the name of the complainant.In this connection it is stated that the op nos. 1 & 2 asked or instructed the complainant through a letter dated 15.01.2002 to submit the Share Transfer Deed or an order from a Court of law.

On receipt of the letter dated 15.01.2002 sent by the op nos. 1 & 2, complainant accordingly tried to get in contact with the seller, i.e. the Investment Corporation of India Ltd., and came to learn that the company had already closed their business long back and finding no way out to contact the seller the Investment Corporation of India Ltd., complainant several times requested the op nos. 1 & 2 to transfer the shares in the name of the complainant and was compelled to send another legal notice through the Ld. Advocate dated 27.05.2015 with such request.

In reply to the legal notice dated 27.05.2015, op nos. 1 & 2 by a letter dated 02.06.2015 asked the complainant to bring an order from a court of law and in the above circumstances, complainant for negligent and deficient manner of service on the part of the ops prayed for proper redressal by directing the parties to transfer the share asked for the Share Transfer Deed direct the ops for those 500 shares to the complainant or an order from a court of law from the complainant.So that the ops may transfer those 500 shares in favour of the complainant from 1994 along with allied benefits, like dividends and further bonus shares etc.

But anyhow even after service of notice upon the ops did not turn up to contest this case for which the case is heard exparte.

Decision with reasons

On careful consideration of the complaint including the documents, it is clear that ITC reported to the complainant’s lawyer that in absence of Securities Transfer Form (From No. SH-4) or Court Order for transfer of shares, they are unable to transfer the concerned shares in favour of complainant and by that letter ITC also requested the complainant’s Lawyer to produce any appropriate Court order for transfer of such shares in favour of complainant and to enable them to proceed further in the matter.But truth is that complainant purchased those shares, Share Certificate No. 325461 to 325465 for 500 shares.

Further it is found that in the meantime several rules and regulations of share transfer has been made and as per said rules and regulations for Share Transfer Deed, someother documents are required which is possible to submit in view of the fact the company from whom the complainant purchased the same and same have already been abolished and in the above circumstances, share of ITC Company cannot be transferred in favour of Paramjit Kaur the complainant on the ground that this Share Transfer Form has not been filled up by the original shareholders in favourof Paramjit Kaur.But ITC already reported the complainant and necessary order of the court of law may be produced, in that case same shall be transferred and no doubt situation is complicated and there is some technicalities for which the share certificate has not been recorded in the name of Paramjit Kaur or transfer in the name of Paramjit Kaur.But ITC Authority have already been reported that if any order is passed by the competent authority of the court of law, in that case, it shall be transferred and considering the letter of the ITC, we find that the complainant may be allowed by directing the ITC to transfer the entire share in the name of the complainant regarding it as transfer since 1994 and to give such allied benefits like bonus, dividends, further shares in respect of the saie 500 shares.

Accordingly the complaint succeeds exparte form.

Hence, it is

Ordered,

That the complaint be and the same is allowed exparte against ops but without any cost.

          Op nos. 1 & 2 are hereby directed to transfer the 500 shares for original share certificate No. 325461 to 325465 (1892961 to 1892965) 500 shares in favour of the complainant w.e.f. 1992 and to do the needful, in this regard by registering the name of the complainant as shareholders and accordingly take such step so that the share may be transferred in the name of the complainant duly by the op nos. 1 & 2 and complainant may get all such benefits, dividends and other in the said share from the ops in future.

          Op nos. 1 & 2 are directed to comply the order within one month from the date of this order failing which for non-compliance of the Forum’s order, op nos. 1 & 2 shall have to pay punitive damages  at the rate of Rs. 200/- per day till full satisfaction of the decree and if it is collected, it shall be deposited to this Forum.

          Even if it is found that ops are reluctant to comply the order, in that case penal proceeding shall be started against the ops for which further penalty and fine shall be imposed upon them.