JUDGEMENT

          Complainant by filing this complaint has submitted that complainant is a unit holder of the UTI Mutual Fund under Folio No. 1055183455 of UTI Mutual Fund with op company and he redeemed or submitted for purchase of all units of above fund amounting to Rs.10,183.61 paisa on 09.10.2007 for an urgent need of family matters and the redemption transaction was not served within 10 working days as per the SEBI Guidelines.  So, complainant intimated non-receipt of the redemption of warrant from the op company on 31.11.2007.  Thereafter complainant intimated several times to the op company about the insufficient services of the documents etc.  But there was no step from the op company to dispatch immediately the redemption warrant to the complainant and the document was served through the registered post and for lack of services was there on the part of the op because they did not take any step in this regard.

          Subsequently the Karvy Computershare Pvt. Ltd., the registered and transfer agent of the op company advised to send them a duly filled and signed indemnity bond on Rs.20/- non judicial stamp paper for issuance of the duplicate warrant to the complainant on 20.12.2007.  But complainant being non-receiver of the registered post document is not compelled to initiate the indemnity bond for duplicate issuance of the redemption warrant.  But surprisingly the op’s agent compelled the complainant to initiate the indemnity bond for issuance of the duplicate warrant.  But the complainant being neither the receiver nor the looser of the original redemption warrant, was compelled to initiate the indemnity bond for the duplicate warrant.

          But complainant did not utilize money from the op company for redemption of his unit when he needed money and that was lack of service on the part of the op company also on the part of Postal Department.  Ultimately complainant got redemption warrant amounting to Rs.10,183.61 paisa from the op company on 22.04.2008 and it was credited on 24.04.2008.  But no interest was paid for the period from 09.10.2007 to 24.04.2008 to the complainant for delay payment for the redemption warrant and that was lack of service and complainant was entitled to get that amount.

          Further they have found that someone recorded an unauthorized death stop option of the complainant under Folio No. 10518376741 of UTI opportunities Fund & Infrastructure Fund and in that response, complainant was unable to withdraw money to utilize for family purpose.  But complainant is still alive, then how the op noted down such unauthorized death stop option against the complainant.  So complainant wrote to withdraw such unauthorized death stop option to op on 21.10.2013 but there was no reply from their desk till today.  But as a result op company intimated through their letters dated 20.10.2011 and 03.11.2011 respectively that they were unable to process the complainant’s request to claim for compensation and for the above circumstances, the complaint was filed.

          On the other hand op by filing written statement submitted that after complainant submitted redemption application cheque No.949437 dated 09.10.2007 for Rs.10,183.61 paisa was dispatched through registered post vide consignment no. 4308 which was not returned undelivered to the ops.

          But on receiving information from the complainant on 03.11.2007 op coordinated with banker for pain/unpaid status of the cheque and as per norms set by UTI AMC, with a view ot avoid any detriment due to fraudulent transaction the ops requested indemnity bond from the complainant on 20.12.2007 and it is categorically mentioned that subsequent request for duplicate cheque from complainant was received on 28.03.2008 and op issued a fresh warrant/cheque no. 760975 dated 08.04.2008 which stands paid on 24.04.2008 on receiving the issue for request of duplicate cheque/warrant from the complainant a fresh cheque bearing no. 760975 was issued on 08.04.2008 and the same was paid on 24.04.2008.

          It is specifically mentioned that as per SEBI regulation if the redemption amount does not reach within 10 days of making redemption request, then AMC shall be liable to pay 15% interest for the period of delay.  However in the present case the request was received on 28.03.2008 and hence there is no delay on the part of the op.  Further as an investor friendly measure and keeping in view the age of the complainant, the op is ready to pay the complainant the interest amount for delay period as per AMC norms and then in view of the above circumstances, it is submitted that the present complaint should be dismissed.

                                                       Decision with reasons

          On proper consideration of the argument as advanced by the complainant and also the Ld. Lawyer for the op, it is found that op sent redemption cheque bearing No.9494437 dated 09.10.2007 for Rs.10,183.61 paisa which dispatched through Registered Post vide sanctioned No.4308 but that was not returned to the op.

          But fact remains that on receipt of the complaint of the complainant on 03.11.2007 op requested the complainant to file a indemnity bond so that no fraudulent transaction can be made by anyone in respect of the said cheque No.949437 dated 03.11.2007 and complainant deposited that indemnity bond on 20.12.2007 and fresh cheque No.760975 dated 08.04.2008 which was sent and which was encashed by the complainant on 24.04.2011 and op has already stated that they are well known the interest as per SEBI and that is within 10 working days.  Then we find that the mater ought to have been disposed earlier.  But complainant was not willing because he is tried to convince that he is entitled to other compensation for harassment.

          Considering the entire fact, it is found that when op is willing to give such interest for late payment in respect of Rs.10,183.61 paisa for the period from 09.10.2007 to 24.04.2008, then we find that there is no ground for considering the present case as violation of any of the provision of the C.P. Act 1986.  What we have gathered that complainant has tried to show that his UTI Opportunity Fund Infrastructure Fund being No. 10518376781 was closed with a request unauthorized death stop option of the complainant and for which complainant has suffered.  But we have gathered that might be someone made such statement, sent such information for which it was closed.  But truth is that that has already been removed by the op.  so, that matter cannot be taken into account as a dispute.

          But considering the documents, it is found that there was fault on the part of the Postal Authority.  But Postal Authority is not a party in this case and truth is that this cheque being No. 949437 dated 12.10.2007 for Rs.10,183.61 paisa has not been returned to the op.  But Postal Authority did not give any answer about that and complainant did not write any letter to the Postal Authority not even the op.  But op got such information from the complainant and they are agreed to pay the said interest.  So, we find that there is no alternative to dispose the matter directing the op to issue a cheque in respect of the interest over the said amount for the period 09.10.2007 to 24.04.2008 as per SEBI Guideline and regarding recording of unauthorized death stop option of the complainant under Folio No.10518376 of UTI Opportunity Fund and Infrastructure Fund must be grabbed by this Forum by giving such direction to the op.

          Accordingly the complaint succeeds.

          Hence, it is

                                                            ORDERED

          That the complaint be and the same is allowed on contest with cost of Rs.500/- against the op.

          Op is hereby directed to pay 15% interest as per SEBI Guideline over the said amount of Rs.10,183.61 paisa from the period 09.10.2007 to 24.04.2008 at once and within one month from the date of this order along with cost as awarded to the extent of Rs.500/-.

          Op is further directed to remove such “unauthorized death stop option of the complainant under Folio No.1051836741 of UTI Opportunity and Infrastructure Fund at once” and without any fail and report to the complainant.

          The entire order of this Forum shall be complied positively within one month from the date of this order failing which op shall be imposed penalty of Rs.10,000/- for adopting such unfair trade practice and also for adopting un-merchantable path by the op and if the said amount is collected, it shall be deposited to the Head of the President, D.C.D.R.F., Kolkata Unit – II.

          Op is directed to comply the order within one month failing which penal action shall be started for which they shall be further imposed fine and penalties also.

          Op is hereby warned for future guidance that they shall be very punctual and keep watch about the customer unit time to time and if any such application for unauthorized death stop option is sent, it must be verified by sending such letter send to customer and thereafter adopt such procedure.  Now the conduct of the op in so many cases is found not merchantable.