State Consumer Disputes Redressal Commission
Ms. Padma, vs M/S Welcome Coir Industries Ltd, on 21 September, 2006
IN THE STATE COMMISSION : DELHI IN THE STATE COMMISSION : DELHI (Constituted under Section 9 clause (b)of the Consumer Protection Act, 1986 ) Date of Decision: 21-09-2006 (1) Appeal No. A-573/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Ms. Padma, Appellant W/o Sh. Bodh Raj, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar. Versus M/s Welcome Coir Industries Ltd, Respondent
U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
(2) Appeal No. A-574/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Ms. Rekha Kanda, Appellant W/o Sh. P.K. Kanda, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
(3) Appeal No. A-575/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Ms. Harjinder, Appellant W/o Sh. Balbir Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(4) Appeal No. A-576/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Satnam Singh, Appellant S/o Shri Lal singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(5) Appeal No. A-577/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Jagdish Singh, Appellant S/o Shri Karam Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(6) Appeal No. A-578/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Tejwant Sing, Appellant S/o Shri Manjeet Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(7) Appeal No. A-579/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Ms. Mamta, Appellant W/o Ashwani Kumar, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(8) Appeal No. A-580/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Inder Singh, Appellant S/o Shri Kirpal Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(9) Appeal No. A-581/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Navjot Singh, Appellant S/o Shri Sohan Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(10) Appeal No. A-582/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Rajwinder Singh, Appellant S/o Shri Surjit Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(11) Appeal No. A-583/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Sardul Singh, Appellant S/o Shri Lal Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(12) Appeal No. A-584/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Ms. Abash Kaur, Appellant W/o Sh. Sohan Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(13) Appeal No. A-585/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Harpreet Singh, Appellant S/o Shri Harcharan Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(14) Appeal No. A-586/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Rakesh Kumar, Appellant S/o Shri Banarsi Das, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(15) Appeal No. A-587/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Sohan Singh Khurana, Appellant S/o Shri Manjeet Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(16) Appeal No. A-588/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Ms. Gurdeep Kaur Appellant W/o Sh. Tejwant Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(17) Appeal No. A-589/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Ms. Jyotika Malhotra, Appellant D/o Shri Darshan Singh C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(18) Appeal No. A-590/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Ashwani Kumar, Appellant S/o Shri Banarsi Das, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(19) Appeal No. A-591/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Jaswinder Singh Appellant S/o Shri Gurdip Singh, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
(20) Appeal No. A-592/2004 (Arising from the order dated 29-06-2004 passed by District Forum(East), Saini Enclave, Delhi in Complaint Case No.18-37/2001 ) Shri Jaswinderjit Singh Madan, Appellant S/o Shri H.S. Madan, C/o Sh. J.S. Malhotra, 331, Shastri Nagar, Lawrance Road, Amritsar.
Versus M/s Welcome Coir Industries Ltd, Respondent U-112. LGF, Vidhata House, Vikas Marg, Delhi-110092.
Presently at 301, 3rd Floor, 230-E, Masjid Moth, New Delhi-110049.
CORAM :
Justice J.D. Kapoor- President Ms. Rumnita Mittal - Member
1. Whether reporters of local newspapers be allowed to see the judgment?
2.
To be referred to the Reporter or not?
JUSTICE J.D. KAPOOR, PRESIDENT (ORAL) As many as twenty complaints were dismissed on merits by the District Forum vide its impugned order dated 29-06-2004. Feeling aggrieved the appellants have preferred this appeal. Since these appeals arise from a common order, these shall stand decided by this single order.
2. There were common allegations that the appellants were allotted 900 shares by the respondent by advice-cum- allotment money notice dated 16-03-1996. As per the notice the appellants were required to pay the balance amount by 22-04-1996. The allotment money notice stipulated that in case of failure to pay the due amount on allotment on or before the last date fixed for payment will render the allottee liable to pay interest at the rate of 15% per annum on the amount outstanding from 16-04-1996 to the actual date of payment.
3. According to the appellants they paid the allotment money with interest on 31-10-1996 but instead of issuing fully paid sticker the respondent endorsed upon the share certificate. Appellants sold these shares through their common friend Shri J.S. Malhotra at the average sale price of Rs. 14.63 per share. The respondent also issued a letter to President of Bombay Stock Exchange to the effect that shares as per folio of the appellants were fully paid. The broker of the appellants, Gandhi Associates wrote to Shri J.S. Malhotra that shares delivered with endorsement of fully paid is bad delivery in view of The Stock Exchange Bulletin dated 06-11-1996 which provided that only shares of respondent with stickers of fully paid up shares shall be accepted. Due to non-delivery of stickers of fully paid up shares, the shares of the appellants were auctioned as per the rules of the stock exchange. Due to auction, appellants were to pay a sum of Rs. 5/- per shares. The respondent did not issue stickers. The shares of respondent have not been traded in the stock exchange. The respondent declared dividend at the rate of 12% per annum for the year 1996. As such the appellant sought following reliefs against the respondent :-
(i) Rs. 20.15 per share (Rs. 15.15 because the value of the share becoming nil in the stock market and Rs. 5/-
being the price which the appellants had to pay because of auction;
(ii) Interest on this amount from 19-12-1996 till date of actual payment;
(iii) Dividend for the period upto 31-03-1996; and
(iv) Cost of litigation and compensation.
4. As regards the relief whether appellants are entitled to Rs. 15.15 as value of the share from the respondent, it was contended by the appellants that the shares of the respondent were not being traded as these were de-listed from the Bombay Stock Exchange and since the appellants were in need of money they had suffered great financial loss due to the act of the respondent.
5. On the contrary the respondent contended that it cannot purchase its own shares as repurchase is against the provisions of Companies Act, 1956. In this regard provision of Section 108 A of Companies Act are relevant. These provisions prescribe that any individual, firm, group constituent of group, body corporate under the same management cannot acquire shares in the company without prior permission of the Central Government. No document was filed by the respondent showing that shares of the appellants were traded on Bombay Stock Exchange on 24-05-2001. In view of the aforesaid provisions of law the respondent-company could not have compelled to re-purchase its own shares without prior approval of the Central Government and as such the relief sought by the appellants in this regard was rightly refused.
6. Next question arises whether the appellant is entitled to Rs. 5/- which they paid due to auction of shares from the respondent. Though there are no documents on record to show that appellants had actually suffered this loss but the fact remains that certain amounts were debited in the name of Shri J.S. Malhotra by Gandhi Associates on 23-12-1996. This circumstance itself is sufficient to show that the appellants are entitled to Rs. 5/- per share due to auction of shares and as such the finding given by the District forum that the debited amount in the name of J.S. Malhotra cannot be attributed to the loss to the appellants as Shri Malhhotra was appointed as attorney on 23-06-1997 confining the power only for legal proceedings is not sustainable.
7. Next question that calls for determination is whether the appellants are entitled to dividend for the period ending 31st March, 1996. In this regard the appellants contended that 12% dividend was declared for the period ending 31-03-1996 and therefore they are entitled for prorata dividend on this amount. In the absence of any document in this regard the District forum repelled this claim of the appellants and rightly so. On the contrary the respondent filed a certified copy of the minutes of the 7th Annual General Meeting held on 30th November, 1996 showing that no dividend was finally approved by the share holders.
8. It is also pertinent to mention at this stage that the shares were sold between 29-10-1996 to 31-10-1996 when these shares were partly paid. The allotment letter clearly shows that the endorsement stickers for fixing of the equity shares certificate were to be sent later on. By the time the endorsement stickers were sent the appellants had already disposed of their shares without making payment of allotment money in respect thereof. Therefore the shares of the appellants were auctioned as per rules of BSE and any loss, if suffered, by the appellants was due to their own fault.
9. Foregoing reasons persuade us to allow the appeal partly by directing the respondent to pay a sum of Rs. 5/- per share on account of auction of shares towards the loss suffered by the appellants. Payment shall be made within one month.
10. All the above appeals are disposed of in aforesaid terms.
11. F.D.R./Bank Guarantee, if any, furnished by the appellants be returned forthwith after completion of due formalities.
12. A copy of this order as per the statutory requirements, be forwarded to the parties free of charge and also to the concerned District Forum and thereafter the file be consigned to Record Room.
13. Announced on 21st September, 2006.
(Justice J.D. Kapoor) President (Rumnita Mittal) Member jj