DEEPALI SHARMA Vs. FEDERAL BANK LTD & ORS

JUDGEMENT

(1.) Federal Bank of India Ltd., the Opposite Party No.1, sanctioned OD limit in the sum of Rs.20,00,000/- in favour of Smt. Deepali Sharma, the complainant, against the pledge of shares. The Market value of the shares on the date of Pledge, i.e., 09.03.2000, was Rs.20,59,300/- as per Drawing Power's pledge charge Statement, as under, which is marked as Annexure A :

(2.) It was agreed that the complainant will receive rights to replace either full or part of the securities, make payment and get release of any such securities and / or dispose of the part or full securities through M/s. Abhipra Capital Ltd., OP3, since deleted, the authorized broker of OP1, as per the normal trade practice. In March, 2000, the complainant asked for release of those shares whose prices were very high and to accept other economy shares as security in lieu thereof. However, the request sent by her was rejected. The complainant had sent a letter dated 17.05.2000 which was duly acknowledged by OP1 on 19.05.2000. Copy of the said letter has been placed on record as Annexure B. Subsequently, the market value of the said securities started coming down and on the advice and warnings of OP1, communicated to complainant vide various notices dated 02.05.2000, 05.06.2000, 13.06.2000, 05.07.2000, 21.08.2000, 04.01.2001 and 18.01.2001, marked as Annexure C (Colly) in due adherence to OP1's advice for regularizing the OD. The complainant further pledged shares with OP1, on the following different dates, in all, aggregating to Rs. 9.28 lakhs as per D.P.'s statement of charges and daily quotation list of Delhi Stock Exchange, as under :-

(3.) The complainant pledged in all, total securities, worth around Rs.30.00 lakhs. Thereafter, the complainant sent three letters dated 28.05.2000, 20.09.2000 and 22.02.2001, marked as Annexure E (Colly), to sell off the shares, worth Rs.9,27,272.14. Vide letter dated 22.02.2002, the complainant asked the OP to sell other shares as well.