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TMI Blog1995 (6) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... broker. The case was that they had purchased 200 shares of Hindustan Levers Ltd. (OP-4) from OPs 1 and 2 on 28-6-1991 for Rs. 28,700. The transaction was through OP-3. On 28-6-1991 itself the complainant handed over a pay order for Rs. 15,800 from out of the total consideration and a cheque for balance amount Rs. 12,900. The complain-ants were given delivery of 100 shares on 28-6-1991 itself and the remain-ing 100 shares were to be delivered on the encashment of the cheque. The cheque was encashed on 29-6-1991. It was however, averred that the complainant further handed over 100 shares out of the above 200 shares to respondent No. 5, who in turn appears to have sold the same to one Mrs. Kanchan Kakkar. As the company (OP 4) declined to tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & 2 to pay Rs. 23,598.50 alongwith interest at the rate of 18 per cent per annun and further for directing OP-4 to transfer 100 shares in the name of the complainant. They further prayed that OP - 1 be directed to pay to the complainant the dividend and other benefits declared by OP-4. 2. The complaint was contested. On an appraisal of the material on record and after hearing Counsel for the parties District Forum held as under: (1)that there was no privity of contract between Mr. D.N. Aggarwal, complainant No. 1 and Smt. Kaushalya Devi OP-1 Mr. D.N. Aggarwal had therefore, no right to file the complaint. (2)Smt. Veena Sarpal, OP - 2 did not hold any shares and there was no question of her selling any shares. There was no cause of actio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e seller the right to retain bonus shares, if any, and dividend which was expected to be announced. It was pleaded in the written version filed on behalf of OP -1 that entitlement to bonus shares and dividend had been specifically excluded from the transaction. This is belied by the documents on record. Annexure C is the so-called agreement. There is no dispute that it is signed by Smt. Veena Sarpal, R - 2 on behalf of her mother Smt. Kaushalya Devi, R - 1 on 28-6-1991. It reads as follows : "I am selling 200 shares of Hindustan Lever to Sh. D.N. Aggarwal in consideration of Rs. 28,700 only out of which Rs. 15,800 were paid by him by pay order. Rest Rs. 12,900 by cheque I am delivering him 100 shares and rest one hundred I will deliver aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undertake to compensate all the purchasers I shall be abide by Delhi Stock Exchange Rules. Sd- (Kaushalya Devi Marwah)" The aforesaid receipt was witnessed by R-3 and R-2 Smt. Veena Sarpal. A perusal of both these documents clearly shows that no exception has been made regarding bonus shares and dividend. On the contrary, the seller R-1 undertook to do all things required in order to effectuate the transfer of the said orders. It was expressly mentioned that for 'bad delivery' for any reason the seller undertook to compensate all the purchasers or subsequent purchasers in this behalf. The aforesaid waiting leaves no doubt that the complainants were entitled to obtain signatures on the transfer deeds to give effect to the above transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of the declaration is entitled to that benefit. If the Company sends the bonus shares and dividend to the shareholder on the basis of the record available with the Company that shareholder holds the bonus shares or dividend as the case may be as a trustee for the transferee in whose favour he or she has already sold the shares. 9. Mr. J.S. Vohra, learned counsel for R-1 vehemently argued that the market rate on 28-6-1991 per share was 163 and the sale price charged was at the rate of Rs. 143.50. He contended that it did not stand to reason why R-1 would have sold shares below the market rate. The only reason was that it was agreed between the parties that the bonus shares and dividend shall belong to the seller and the same shall not be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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