M.N. GANDHI vs East India Hotels Ltd.

FACTS necessary for the disposal of this appeal are that Mr. M.N. Gandhi and his wife Mrs. S. Gandhi held 140 non-convertible debentures of East India Hotels Ltd. of Rs. 100/- each. These were due for redemption on 18.3.93. The case of the complainant before the District Forum was that original debentures certificates were furnished to the Company on 24.6.93 under Registered Post for payment on the due date as also for transfer of shares as requested in the letter from one complainant to the other. The complainant failed to receive payment or the transfer of debentures as requested in the aforesaid letter. The complainants sent a reminder dated 1.8.93 and refund warrants were received in respect of the said debentures vide OP letter dated 22.9.93. The complainants had two grievances, (i) that they were entitled for interest from 18.8.93 to 22nd Sept.,1993, (ii) the OP having failed to transfer the debentures as requested in the letter dated 24.6.93, resulting in the loss of tax planning and exposed the complainants to the risk of being prosecuted under the Income Tax Act.

THE plea on behalf of the OP was that neither the communication dated 24.6.93 nor the original debenture certificates had been received by the OP. However, on receipt of reminder dated 1.8.93 on 13.8.93 which made a reference to the earlier letter dated 24.6.93 the refund warrants relating to these debentures had been sent to the complainants. No request for transfer of debentures from the complainants having been received before the recorded date, no action could be taken in this behalf. It was also stated that a Notice had been issued both individually as well as through Press on 18.5.93 that the due date in respect of the debentures in question was 18.8.93, and that redemption proceeds had to be paid only on surrender of the original debenture certificates at the registered office of the Company. THE date taken for issue of refund warrants for the purposes of debenture holders was 20.7.1993. On a consideration of the material placed before it, the District Forum held that the complainants failed to surrender the original debenture certificates before the recorded date and consequently there was no deficiency in service. The complaint was accordingly dismissed with Rs. 500/- as costs to be paid by the complainants. Aggrieved by the order, the complainants have preferred this appeal.

We have heard Mr. M.N. Gandhi who argued in person and Mr. Akshay Babu, Manager Legal for the respondents. The appellant placed on records a letter from the Sr. Supdt. Post Office, SW Division, New Delhi that the complainant''s registered letter dated 24.6.93 had in fact been delivered to the address Company on 30.6.93 i.e. much before the recorded date. In the aforesaid letter from the Senior Superintendent of Post Office, there is a reference to letter from the Director, Calcutta G.P.O. No. RSA/41/ 6/95-96 dated 23.9.95 that the aforesaid registered letter No. 4331 had been delivered to the addressee on 30.6.93. The letter further shows that the delay in collecting the correct information appears to have occurred as the earlier registration number of the letter dated 24.6.93 had been incorrectly furnished as 433 instead of same being 4331. On discovery of the correct registration number of the registered letter, its delivery was confirmed on the basis of the information furnished by the Director, GPO, Calcutta. The appellants have also placed on record a copy of the postal receipt regarding the registration of the envelope on 24.6.93 bearing registration number 4331 dated 24.6.93. From the above evidence, it stands established that the complainant had sent the original debenture certificates well before the recorded date and the same were delivered in the office of the respondent. The fact that necessary action thereon was not taken amounted to deficiency in service. This resulted in delay of 30 days in the payment of the amount which became due. The OP is accordingly directed to pay interest on the amount which became due on 18.8.93 regarding the aforesaid debentures held by the complainants @ 15% per annum from 19.3.93 to 22.9.93. With regard to the non-transportation of the debentures from one complainant to the other, as requested in the letter dated 24.6.93, the appellant did not press the case and we, therefore, do not propose to deal with the same. The appeal is allowed in these terms and the order of the District Forum is set aside. There will be no order as to costs in the appeal. A copy of the order be conveyed to both the parties as well as DF-I. Appeal allowed.