SARLA JAIN Vs. UNIT TRUST OF INDIA

JUDGEMENT

(1.) As these are two appeals by two appellants against the single order dated 24th April, 1990 of the State Commission of Delhi against the same respondent Unit Trust of India, on common questions of law and with identical grounds of appeals, they are being disposed of together.

(2.) The appellants had loaned certain sums of money to one Shri P. P. Gupta on the security of Unit Certificates issued by the Unit Trust of India under Unit Scheme 1964. These Unit Certificates were pledged as security with the appellants.

(3.) The case of the appellants is founded on the allegation of negligence on the part of the Unit Trust of India. The complaint states that "In the present case the number of units indicated on the Unit Certificates are by a common typewriter, printed by means of an ordinary ribbon. Therefore, it is easy to obliterate the number typed on the certificates and retype the same, thereby inflating the number of units in such certificates. Therefore, the issuance of such type of certificates by the Unit Trust of India amounts to 'deficiency' in service by the Unit Trust of India". In short, according to the appellants, the certificates of Unit Trust of India were capable of being easily tampered with and this facilitated the fraud being committed on the appellants by Shri P. P. Gupta to whom the moneys were advanced and hence the Unit Trust of India has been guilty of negligence; issuing certificates which would be capable of easy tampering and forging.