GAMMA INVESTMENTS Vs. NATIONAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) GAMMA investments (hereinafter referred to as the plaintiff) is a partnership firm engaged in the business of stock broking. National Insurance Company Ltd., the defendant is an insurance company which had on payment of premium issued 'stock brokers' indemnity insurance policy', Exh. P-1 for the period 1st June, 2000 to 31st May, 2001 in favour of the plaintiff. The plaintiff has filed the present suit for recovery of Rs. 46,22,795.30 against the defendant on account of loss covered by the policy and Rs. 14,02,036.82 towards interest. Plaintiff has also claimed damages for pain and suffering amounting to Rs. 1 lac.

(2.) THE plaintiff, had sold 7,96,900 shares of M/s. Jindal Vijayanagar Steel Ltd. (hereinafter referred to as the shares, for short) as a broker for their clients Mr.Gunjan Jain and Mr.Vishnu Kumar. These shares were subsequently lodged for transfer but the Registrar of M/s.Jindal Vijayanagar Steel Ltd. refused to register the transfer on the ground that they were partly paid up shares and the sticker of 'fully paid up' affixed thereon was forged.

(3.) THE plaintiff was required to make good and replace the forged/bad delivery of shares with new shares. The plaintiff replaced and purchased new shares of M/s Jindal Vijaynagar Steel Ltd. from the market and in this process suffered losses. They made claim(s) under the policy which was rejected. The plaintiff also approached Ombudsman and National Consumer Disputes Redressal Commission but their claim was not entertained on the ground of lack of jurisdiction.