Kerala High Court
Sreeraj K. Prabhu vs The Investor Education And Protection ... on 15 July, 2025
Author: N.Nagaresh
Bench: N.Nagaresh
2025:KER:52393
WP(C) NO. 14319 OF 2025
1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 15TH DAY OF JULY 2025 / 24TH ASHADHA, 1947
WP(C) NO. 14319 OF 2025
PETITIONER:
SREERAJ K. PRABHU
AGED 35 YEARS
CHARTERED ACCOUNTANT, S/O. LATE D.V.K PRABHU,
RESIDING AT C.C. 54/58, KUMARANASAN JUNCTION,
KALOOR KADAVANTHARA ROAD, ERNAKULAM, NEXT TO
STERLING GARDENS, KALOOR P.O, ERNAKULAM
DISTRICT, PIN - 682017
BY ADVS.
SMT.R.S.MANJULA
SMT.AMMU CHARLES
RESPONDENTS:
1 THE INVESTOR EDUCATION AND PROTECTION FUND
AUTHORITY, MINISTRY OF CORPORATE AFFAIRS,
GOVERNMENT OF INDIA, GROUND FLOOR, JEEVAN VIHAR
BUILDING 3, SANSAD MARG, NEW DELHI, REPRESENTED
BY ITS CHIEF EXECUTIVE OFFICER (CEO), PIN -
110001
2 THE NODAL OFFICER
VINYL CHEMICALS (INDIA) LIMITED, REGENT
CHAMBERS, 7TH FLOOR, JAMNALAL BAJAJ MARG 208,
NARIMAN POINT, MUMBAI, MAHARASHTRA, PIN -
400012
BY ADV SHRI.C.DINESH, CGC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 15.07.2025, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
2025:KER:52393
WP(C) NO. 14319 OF 2025
2
N. NAGARESH, J.
----------------------
W.P.(C) No.14319 of 2025
------------------------------
Dated this the 15th day of July, 2025
JUDGMENT
The father of the petitioner had owned shares and dividends of the 2nd respondent-company. Being the rightful legal heir and beneficiary of his father's investments in the 2nd respondent Company, the petitioner was issued with Ex.P1 Entitlement Letter dated 09.10.2024 from the 2nd respondent-Company under Rule 7(9) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.
2. The 1st respondent, Investor Education and Protection Fund Authority, is a statutory body established by the Government of India under Section 125 of the Companies Act, 2013. The shares and dividends of the father of the 2025:KER:52393 WP(C) NO. 14319 OF 2025 3 petitioner were transferred to the 1st respondent in accordance with Section 124 of the Companies Act, 2013. The petitioner submitted Ext.P2 Application dated 11.11.2024 to the 1st respondent for the claim of shares and dividends owned by his father and deposited with it as per the Companies Act. Pursuant to Ext.P2 submitted by the petitioner, Ext.P3 was issued by the 2 nd respondent company on 03.12.2024.
3. In spite of submitting all the statutory forms, the claim of the petitioner has not been processed by the 1 st respondent. The petitioner is in dire need of money and the amount deposited with the 1st respondent is rightfully due to him. As per Ext.P4 reply dated 20.03.2025, the 1st respondent admits to a huge delay with them in processing claims, as many applications are pending from February 2024 and have still not been settled or paid. The delay to consider Ext.P2 claim of the petitioner in time is grossly unreasonable and unjustified, contends the petitioner.
2025:KER:52393 WP(C) NO. 14319 OF 2025 4
4. I have heard the learned counsel for the petitioner and the learned Standing Counsel appearing for the 1st respondent.
5. It is evident that the petitioner has submitted application for refund as per the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The receipt of the application is not disputed by the 1st respondent.
6. Standing Counsel for the 1st respondent would submit that currently the application for refund are processed and the applications which were filed in the month of February 2024 are under consideration now. The claim of the petitioner is in the que of processing through First-In First-Out (FIFO) method. It will be taken up as and when its turn comes.
7. It may be noted that the petitioner has submitted Ext.P2 application as early in the month of November, 2024. More than 8 months have lapsed. For a 2025:KER:52393 WP(C) NO. 14319 OF 2025 5 claim from the Investor Education and Protection Fund, such delay is not advisable.
In the facts and circumstances of the case, the writ petition is disposed of directing the 1 st respondent to finalise the proceedings on Ext.P2 application submitted by the petitioner as expeditiously as possible and at any rate within a period of two months from the date of receipt of a copy of this judgment.
Sd/-
N. NAGARESH JUDGE Mn 2025:KER:52393 WP(C) NO. 14319 OF 2025 6 APPENDIX OF WP(C) 14319/2025 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ENTITLEMENT LETTER DATED 09.10.2024 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit P2 TRUE COPY OF THE FORM NO. IEPF-5 APPLICATION TO THE AUTHORITY FOR CLAIMING UNPAID AMOUNTS AND SHARES OUT OF THE INVESTOR EDUCATION AND PROTECTION FUND WITH SERVICE REQUEST NUMBER AB1813233 DATED 11.11.2024 SUBMITTED BY THE PETITIONER Exhibit P3 TRUE COPY OF THE FORM NO. IEPF-5, E-
VERIFICATION REPORT ISSUED BY THE 2ND RESPONDENT COMPANY WITH SERVICE REQUEST NUMBER AB 2058544 DATED 03.12.2024 Exhibit P4 TRUE COPY OF THE REPLY OF THE 2ND RESPONDENT DATED 20.03.2025 IN TICKET NUMBER FO-202503192400846