Tamil Nadu

South Chennai

CC/390/2009

M/s.Vijay H.Madhusudan - Complainant(s)

Versus

M/s.Reliance Power Ltd - Opp.Party(s)

V.Balaji, V.G.Suresh Kumar

14 Jun 2018

ORDER

                                                                        Date of Filing  : 28.04.2009

                                                                          Date of Order : 14.06.2018

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

                 TMT. K. AMALA, M.A., L.L.B.                                : MEMBER-I

 

C.C. No.390 /2009

DATED THIS THURSDAY THE 14^TH DAY OF JUNE 2018

                                 

Vijay H. Madhusudan,

S/o. Shri. H.V. Madhusudan,

AE 177, 11^th Main Road,

Anna Nagar,

Chennai – 600 040.                                                       .. Complainant.                                             

 

                                          ..Versus..

1. Reliance Power Limited,

Represented by its Director,

Registered and Corporate Office –

H Block, First Floor,

Dhirubhai Ambani Knowledge City,

Navi Mumbai – 400 710.

 

2.  Karvy Computer Share Private Limited,

Represented by its Director,

Plot No.17 – 24, Vittal Rao Nagar,

Madhapur,

Hyderabad – 500 081.                                             ..  Opposite parties.

          

Counsel for complainant           :  M/s. V. Balaji & another

Counsel for 1^st Opposite party  :  Exparte

Counsel for 2^nd Opposite party  :  Mr. C.P.R. Kamaraj

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act, 1986 praying to refund a sum of Rs.25,875/- paid by the complainant for purchase of shares together with interest at the rate of 18% p.a., to pay a sum of Rs.50,000/- towards compensation for mental agony and to pay the cost of the complaint.

1.    The averments of the complaint in brief are as follows:

The complainant paid a sum of Rs.25,875/- by way of cheque bearing No.000008 dated 18.01.2008 for purchase of  Reliance Power I.P.O. for allotment of shares.   The 2^nd opposite party also informed that 16 shares worth Rs.6.880/- had been allotted to the complainant on 10.03.2009.  The balance amount of 18,995/- was refunded by way of refund order dated:01.02.2008.  But the complainant has not received the refunded amount which was returned to the 2^nd opposite party.   The complainant submits that the opposite party even after receipt of Rs.25875/- failed and neglected to issue due shares for the entire amount and allotted shares only to the tune of 6880/-.   Under such circumstances, the opposite parties are duty bound to return the balance amount of Rs.18,995/- immediately.  Even after repeated demands and issuing notice for the refund of a sum of Rs.18,995/- share amount was not paid to the complainant.  Further the complainant submits that he is not in need of any shares from the 2^nd opposite party and after closing the  shares issued by the opposite party payment of Rs.25,875/- may be issued.   The complainant suffered great mental agony because of the act of the opposite parties.  Hence the complaint is filed.

2.     Inspite of receipt of notice the 1^st opposite party has not chosen to appear before this Forum.   Hence the 1^st opposite party was set Exparte for non appearance.

  3.   The brief averments in the written version filed by the 2^nd  opposite party is as follows:

The 2^nd opposite party specifically denies each and every allegation made in the complaint and puts the complainant to strict proof of the same.   The 2^nd opposite party states that the complainant applied for shares and paid a sum of Rs.25,875/- to the 1^st opposite party through the 2^nd opposite party.  Subsequently, 16 shares valued Rs.6,880/- was allotted to the complainant and the balance amount of Rs.18,995/- was refunded vide order No.02404212 dated 01.02.2008.  Due to delay in receiving the payment confirmation from the IPO bank, the refund amount was sent belatedly in the year 2009  i.e. on 14.07.2009.  But surprisingly, the refund order sent to the complainant was returned undelivered to the 2^nd opposite party.  Thereafter, the 2^nd opposite party has not come forward to pay the amount.  The compensation and interest amount claimed by the complainant are exorbitant and he is not entitled for the same.   There is no cause of action in the above case and the balance of convenience and the prima facie case is only on the side of the 2^nd opposite party.  The complaint is liable to be dismissed.

3.   In order to prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A14 are marked.  Proof affidavit of the 2^nd opposite party filed and documents Ex.B1 to Ex.B3 are filed and marked on the side of the opposite parties.

4.     The points for consideration is:-

1. Whether the complainant entitled to refund a sum of Rs.25,875/- paid towards purchase of shares with interest at the rate of 18% p.a. as prayed for?
2. Whether the complainant entitled to a sum of Rs. 50,000/- towards compensation for deficiency in service with cost as prayed for?

5.     On point:

        The 1^st opposite party was set Exparte.   The 2^nd opposite party has filed written arguments.  Heard the oral arguments of the complainant.  Perused the records namely the complaint, written version, proof affidavits, documents etc.  Admittedly, the complainant paid a sum of Rs.25,875/- by way of cheque bearing No.000008 dated 18.01.2008 for purchase of  Reliance Power I.P.O. for allotment of shares.   The 2^nd opposite party also admitted that 16 shares worth Rs.6.880/- had been allotted to the complainant on 10.03.2009.  The balance amount of 18,995/- was refunded by way of refund order dated:01.02.2008 as per Ex.B1.  But the complainant has not received the refunded amount which was returned to the 2^nd opposite party.   The learned Counsel for the complainant contended that the opposite party even after receipt of Rs.25,875/- failed and neglected to issue due shares for the entire amount and allotted shares only to the tune of 6880/-.   Under such circumstances, the opposite parties are duty bound to return the balance amount of Rs.18,995/- immediately.  Even after repeated demands and issuing notice for the refund of a sum of Rs.18,995/- share amount was not paid to the complainant. Further the contention of the complainant is that he is not in need of any shares from the 2^nd opposite party and after closing the  shares issued by the opposite party payment of Rs.25,875/- may be issued with the compensation of Rs.50,000/-.  But on a careful perusal of records, the complainant has not pleaded and proved the reason for cancelling the allotted 16 shares. 

6.     The contention of the 2^nd opposite party is that the complainant applied for shares and paid a sum of Rs.25,875/- to the 1^st opposite party through the 2^nd opposite party.  Subsequently, 16 shares valued Rs.6,880/- was allotted to the complainant and the balance amount of Rs.18,995/- was refunded vide order No.02404212 dated 01.02.2008 as per Ex.B1.  Due to delay in receiving the payment confirmation from the IPO bank, the refund amount was sent belatedly in the year 2009  i.e. on 14.07.2009 .  But surprisingly, the refund order sent to the complainant was returned undelivered to the 2^nd opposite party.  Thereafter, the 2^nd opposite party has not come forward to pay the amount.  There is no proper reason for foreclosing the allotted shares also.  The complainant’s claim is exorbitant.  Considering the facts and circumstances of the case this Forum is of the considered view that the opposite parties shall pay a sum of Rs.18,995/- with interest at the rate of 9% p.a. from the date of complaint and to pay a sum of Rs.10,000/- towards compensation with cost of Rs.5,000/- to the complainant.

  In the result, this complaint is allowed in part.  The opposite parties  1 & 2  are jointly and severally liable to refund a sum of Rs.18,995/- (Rupees Eighteen thousand nine hundred and ninety five only) being the balance amount in the purchase of shares with interest at the rate of 9% p.a. from the date of filing of this complaint i.e. 28.04.2009 to till the date of this order to the complainant and to pay a sum of Rs.10,000/- (Rupees ten thousand only) towards compensation for mental agony with cost of Rs.5,000/- (Rupees five thousand only) to the complainant.

The above amounts shall be payablewithin six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 14^th day of June 2018. 

 

MEMBER –I                                                                      PRESIDENT

COMPLAINANT SIDE DOCUMENTS:

Ex.A1	18.01.2008	Copy of complainant’s application for issuance of share certificate to the 1st opposite party
Ex.A2	Jan - 2008	Copy of bank statement
Ex.A3	03.04.2008	Copy of electronic mail from the complainant to 2nd opposite party
Ex.A4	04.04.2008	Copy of electronic mail from the complainant to 2nd opposite party
Ex.A5	08.04.2008	Copy of letter issued by SEBI to the complainant
Ex.A6	10.05.2008	Copy of Certificate issued by Axis Bank to the complainant
Ex.A7	07.06.2008	Copy of letter of the 2nd opposite party to the complainant
Ex.A8	09.07.2008	Copy of letter of the 2nd opposite party to the complainant
Ex.A9	16.07.2008	Copy of reply of the complainant to 2nd opposite party
Ex.A10	18.12.2008	Copy of notice issued by the complainant’s Advocate to the opposite parties with postal acknowledgement
Ex.A11	31.12.2008	Copy of letter issued by the 2nd opposite party to complainant
Ex.A12	13.01.2009	Copy of letter issued by SEBI to the complainant
Ex.A13	19.01.2009	Copy of letter issued by the complainant to the opposite parties
Ex.A14	05.02.2009	Copy of letter issued by the 2nd opposite party to complainant

 

2^ND OPPOSITE  PARTY SIDE DOCUMENTS:  

Ex.B1	01.02.2008	Copy of refund order
Ex.B2	14.07.2009	Copy of communication from the 2nd opposite party
Ex.B3	29.05.2015	Copy of the Authorisation Letter

 

 

MEMBER –I                                                                      PRESIDENT