D.o.F:28/3/2010
D.o.O:30/6/2011
IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD
CC.NO. 76/11
Dated this, the 30th day of June 2011
PRESENT:
SRI.K.T.SIDHIQ : PRESIDENT
SMT.P.RAMADEVI : MEMBER
SMT.BEENA.K.G : MEMBER
Majeed.T.M, S/o P.M.Hassan Kunhi,
R/at Bella Kadappuram, Po Kanhangad,
Kasaragod . rep by his Power of - : Complainant
Attorney K.K.Abdulla,
S/o Late P.M.Hassan Kunhi, R/at Bella Kadappuram,
Po Kanhangad, Kasaragod.
(Adv.N.P.Ravindran,Hosdurg)
1.P.A.Kareem,
Managing Director, Malabar Fun City Limited.
Regd.Office:Kalandar Building,Nullipadi,Kasaragod.
2.Ashraf Paika, Director, : Opposite parties
Malabar Fun City Limited,
Regd.Office:Kalandar Building,Nullipadi,Kasaragod.
(Exparte)
ORDER
SMT.P.RAMADEVI : MEMBER
The facts of the complaint in brief are as follows:
That the opposite parties approached the complainant stating that the Malabar Fun City Ltd Co. has been incorporated for a specific purpose of promoting and implementing a water Theme Park at Periya by getting the funds by selling equity shares among the public. The opposite parties were issued a printed a copy of the terms and conditions of equity shares, location map etc to the complainant. Due to the canvassing, inducement and promise to implement the Water Theme park the complainant had purchased 5000 equity shares of `10/- each and obtained share certificate dt. 28/2/2006 signed by opposite party No.1&2 the managing Director and Director of the company respectively. As per the conditions of equity shares a member will have the right to get information about the working progress etc of the venture and proportionate profit will be paid to the shareholders, the annual audited statements will be placed before the annual general body and dividend will be placed on the audited statement of account for the financial year ending on 31st march in succeeding year, any member can seek information about the company from the Board of directors giving a written request etc. After 6 months from the date of purchase of shares when the complainant enquired about the company, the E-mail address shown in the paper attached to the share certificate were not seen in the site and the mobile phone numbers were found not live. Then the complainant himself inspected the location where the Fun city has proposed to start the construction and to the surprise of the complainant the location is seen in an abadoned stage and according to the complainant if the company is not properly working then the opposite parties are liable to take steps to take proper liquidation process as per the companies Act and moreover the nonfunctioning of the company is not informed to the shareholders and the opposite parties even not convened any general body meeting to discuss the non functioning of the company. Here the complainant had sent a demand notice asking the opposite parties to refund an amount of ` 50,000/- being the share value and 18% interest and compensation. But the notice was returned unserved with an endorsement that the addressee left. Hence this complaint is filed alleging deficiency in service against the opposite parties.
2. On admission of the complaint the Forum issued notice to the opposite parties . But the notice returned unserved with an endorsement addressee left. Hence the complainant had taken steps to publish notice in Karaval local daily. Eventhen the opposite parties were remained absent and therefore they were set exparte.
3. The evidence in this case consists of the proof affidavit filed by the power of attorney holder of the complainant and Exts.A1 to A10 documents.
4. After going through the evidence of the complainant the following issues are raised for consideration
1. Whether the complaint is a consumer as per the Consumer Protection Act?
2. Whether there is any deficiency in service on the part of the opposite parties?
3. If so what is the relief and cost?
Heard the counsel for the complainant and documents perused.
5. Issue No.1
Here the complainant is a shareholder of opposite party company. Hence the question is raised whether the shareholder will come under the purview of the consumer protection Act.
In Unit Trust of India vs. Sri Shankar Das reported in 1986-2005 consumer 9306 (NS) the Hon’ble National Commission observed that the shareholder is a consumer and dispute raised is a consumer dispute. On the basis of the above observation the first issue is answered accordingly.
6. Issue Nos.2&3:
The complainant purchased the shares after knowing the fact that the opposite parties obtained the certificate of incorporation and the certificate of commencement of business from the authorities. He bonafidely believed that the company will run smoothly. But the opposite parties failed to perform their part as directors to promote the business of the company. As the managing director and director of the company they are liable to compensate the complainant There is no contra evidence before the Forum to disbelieve the complainant.. Therefore we are of the opinion that there is deficiency in service on the part of opposite parties.
Hence the complaint is allowed and the opposite parties are directed to pay ` 50,000/- (Rupees fifty thousand only)being the share value with interest @9% per annum from the date of complaint till payment and cost of ` 2000/-(Rupees two thousand only) to the complainant. Time for compliance is 30 days from the date of receipt of copy of the order. In default the complainant is entitled to get interest @12% per annum from the date of complaint till payment
Exts:
A1- Poer of attorney
A2-Share certificate
A3-Certificate of incorporation
A4-Certificate for Commencement of Business
A5- receipt voucher
A6-Terms and conditions of equity shares
A7-location map
A8-copy of lawer notice
A9&A10-return envelop with A.D
Sd/ Sd/ Sd/
MEMBER MEMBER PRESIDENT
eva
/forwarded by Order/
SENIOR SUPERINTENDENT
