ARJAN SINGH BAWA Vs. THAPAR AGRO LTD

JUDGEMENT

(1.) Arjan Singh Bawa, complainant for short, lodged 50 equity shares with the respondent on 28.11.1991 after complying with the necessary formalities. The shares were required to be transferred within two months but in fact, they were transferred and received back only on 31.8.1992. The effect of the delay was that the shares which had a market rate of Rs.90/- per share on 3.4.1992 came down to Rs.45/- on 7.9.1992. The complainant also failed to receive dividend amounting to Rs.60/-. He claimed compensation @ Rs.55/- per share i. e.90.45 and Rs.60/- on account of dividend. None appeared for M/s. Thapar Agro Limited, opposite party in the complaint. The District Forum held mat the opposite party was deficient in service in causing delay in transfer of the shares and allowed Rs.250/-as compensation and an equal amount as costs. Dissatisfied with the order, the complainant has preferred this appeal.

(2.) Despite of notice sent by registered post, the respondent failed to appear. We have heard Mr. Darshan Singh Bawa, Authorised Representative of the appellant and have gone through the records. The appellant has placed on record the quotation list of Delhi Stock Exchange in order to show that the share of Thapar Agro commanded a price of Rs.90/- per share on 3.4.1992 and it came down to Rs.34/-.

(3.) The quotation, in our view, does not help in determining the loss suffered by the appellant. The method of calculating the loss suggested by the appellant does not commend itself to us for the simple reason that the complainant may not have disposed of the equity shares when the prevailing rate was Rs.90/-. No effort has been made by the appellant to place material on record on the basis of which average rate during the material period could be worked out. At the same time, we are clear about two things, one that the compensation awarded is on the lower side and two no reasonable formula has been suggested to us to work out the monetary loss suffered by the complainant. Keeping in view the number of shares, their face value and the substantial decline in the market value over a period of time and the peculiar facts of the case, we enhance the compensation to Rs.1,500/- and costs to Rs.500/- instead of those awarded by the District Forum. The amount as enhanced in the appeal, shall be paid within four weeks of the receipt of a copy of this order by the respondent failing which it will be open to the appellant to invoke provisions of Sec.27. The appeal is disposed of in these terms. A copy of the order be conveyed to the parties as well as to the District Forum.