SUAHISH DIAMONDS LTD. vs Surekha

WE are proceeding to dispose of this appeal at the stage of its admission itself on perusal of the material available before us and on hearing the employee of the appellant named above and Mr. Rahul Gandhi-Advocate for respondent No. 1/organisation complainant.

ORIGINAL O.P. No. 1 are the appellants in this appeal, who have challenged the order dated 12.7.2001 passed by District Forum, Pune holding it along with other O.Ps. being deficient in the matter of processing of the shares, which the complainant has deposited with them for the endorsement to the effect of full payment thereof by the complainant. O.P. No. 1 is a Company issuing the shares and O.P. Nos. 2 and 3 are their Agents.

When the complainant submitted the shares, it is stated and it is not denied that O.P. Nos. 2 and 3 who are the Agents of O.P. No. 1 lost or misplaced the said shares.

CONSEQUENTLY, share certificates could not be made available to the complainant. Complainant in this situation, requested either return of the share certificates or for issuance of duplicate shares, but that was not responded to and hence the complaint.

BEFORE the District Forum, O.Ps. did not respond to the process issued by the District Forum in the complaint either by appearance or by filing the written statement. District Forum therefore proceeded to process the claim of the complainant and on being satisfied, has ordered the O.Ps. jointly and severally to pay sum of Rs. 19,500/- being the amount of the shares actually paid with interest, plus cost. Said findings have been challenged in this appeal. Across, above named Representative of the appellant submitted that dispute herein will not fall in the category of consumer dispute, since the transaction was in the nature of ready forward transaction, also known as buy-back transaction. We refer to the discussion as appearing in para 6 of the impugned judgment and operative clause of the impugned order, ordering refund of the amount in question.

APART from the fact that there are no specific pleadings to substantiate the stand taken by and on behalf of the appellant before us that it was buy-back transaction, if one reads the case of the complainant, the share certificates were given to the O.Ps. by making necessary endorsement with a specific request for return of the share certificates to the complainant by the O.Ps. after making due endorsement, which was not done.

CONSEQUENTLY, complainant could not also sell the shares in the market, which she was otherwise could have done in normal course. Taking into consideration, all these facts, District Forum held and rightly so, that misplacement of the share certificates, which are in par with securities amounts to deficiency in service and so holding has ordered return of the amount being the price of the shares already paid by the complainant, plus 15% interest. It is to be stated and it is reasonable to think that by awarding rate of interest @ 15% p.a. District Forum has taken into consideration the element of compensation, which complainant has to be paid under Section 14(2) of Consumer Protection Act, 1986, since deficiency against the O.Ps. stood established as noticed hereinabove.

That being so, we do not find any reason to deviate from the order impugned in this appeal.

ACROSS, the Representative of the appellant submitted that the rate of interest @ 15% p.a awarded is on higher side and in transaction of nature is not justified. In our view, interest @ 10% p.a. will be fair and reasonable, in the facts and situation as obtained in the matter herein. We modify the order accordingly. ORDER Appeal is partially allowed to the extent as under : 1. Findings of the District Forum holding the O.Ps. deficient in rendering services vis-a-vis complainant stands confirmed. 2. Award of Rs. 19,500/- by O.Ps. jointly and severally also stands confirmed. 3. Rate of interest @ 15% p.a. however stands reduced to 10% p.a. 4. Rest period of interest and order of cost stands confirmed. 5. As far as this appeal is concerned, no order as to costs. 6. Copies of the order herein to be furnished to the parties.

Appeal partly allowed.