1994 (6) TMI 138 - Commission - Companies Law

Summary

Issues:
Claim for redemption value of shares, Compensation for delay, Interest on compensation and redemption amount, Compensation for mental torture/anxiety, Settlement attempt by opposite party, Admission of fault by opposite party, Payment of redemption value and compensation, Award of interest, Award of costs

The judgment pertains to a complaint filed by the petitioner who held 17,400 Master shares purchased from the stock market. The opposite party No. 1 declared a redemption scheme for Master shareholders at Rs. 49.70 per share, with specific deadlines for lodging shares and forms. The petitioner opted for redemption based on the promise of payment within 30 days. However, the redemption value was not received within the stipulated period, causing the petitioner to miss out on investing in a lucrative public share issue of State Bank of India. The petitioner sought direction for payment of the redemption sum and compensation for missed investment opportunities. The opposite parties failed to contest the matter initially and later suggested an amicable settlement, which the petitioner rejected as a delay tactic. The opposite party No. 1 admitted fault for the delayed payment and made a partial compensation payment, which the petitioner found inadequate.

The Commission found in favor of the petitioner, directing the opposite party No. 1 to pay the redemption value of Rs. 8,64,780 within ten days, adjusted for the partial payment already made. Additionally, a compensation amount of Rs. 3,17,130 was awarded, reduced by the amount already paid. The Commission declined to award interest for the past period but ordered the opposite party to pay costs assessed at Rs. 1,000 to the petitioner. The judgment disposed of the complaint, holding the opposite party liable for the delayed redemption payment and inadequate compensation, thus providing relief to the petitioner for the financial loss incurred due to the delay in payment.

---