ALOYSIUS D’SOUZA, CHRISTIAN Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India, the Petitioner, an individual, has prayed for quashing of the communication dtd. 4/10/2007 issued by Respondent No.3- National Stock Exchange (NSE) to Respondent No.5-Transfer Agent directing them not to transfer shares held by the Petitioner in Respondent No.4-Company-Dr. Reddy's Laboratories Limited. The Petitioner further seeks mandamus to issue him a duplicate share certificate.

(2.) Since 1986 to 1997, Petitioner acquired shares, in tranches, of Respondent No.4-Company. As on 10/5/1994, the total shares held by Petitioner of Respondent No.4-Company in Folio No.A00450 was 900 shares. The Petitioner subsequently sold some of these shares. In April 2007, the shares of Rs.10.00 each of Respondent No.4-Company were split into shares of Rs.5.00 each. After the bonus issue, these 900 shares became 1800.

(3.) On 19/1/2007, Respondent No.5-Transfer Agent informed the Petitioner that he held 450 shares (before split-up) of Respondent No.4-Company, whereas he had surrendered only 50 shares for subdivision. Therefore, a request was made to the Petitioner to surrender the shares certificate for the balance shares. There were proceedings initiated by the Petitioner by invoking the redressal mechanism of the Bombay Stock Exchange in this connection, but the same is not relevant for our purpose. Respondent No.4-Company has issued dividend warrants from time to time in the name of Petitioner, wherein it is stated that the Petitioner is holding 1800 shares. However, these dividends were not credited to the Petitioner's account because of communication from Respondent No.3-NSE which is impugned in the present proceedings. The said accumulated dividends on shares has been transferred to Respondent Nos.1 and 2 being Investor Protection Fund set up by the Union of India.