Demat pain

I have been trying to transfer a hundred Videocon shares to my demat account for the last one year. I contacted MCS Limited, Videocon’s share transfer agent in Mumbai, but nothing happened. Repeated letters and reminders from me had no effect. When I asked about the dividend arrears, only Rs 50 was sent to me by MCS Ltd, but the shares have not been transferred to my demat account as yet. I wrote to the Calcutta office of the Securities and Exchange Board of India (SEBI), which washed its hands of the matter by sending an unsigned letter, instructing me to take up the matter with its Mumbai office.

Soumen Kumar Biswas, Tarak Manjil,
K-75, Kamdahari Road, Garia, Calcutta-700084.

Company response: No response from SEBI, Calcutta.

The expert: Since the registered office of the company falls under the territorial jurisdiction of the SEBI regional office in Mumbai, the complainant will have to approach the deputy general manager, office of investor assistant and education, Securities and Exchange Board of India, National Block Exchange plaza, fourth floor, Bandra-Kurla Complex, Bandra (E), Mumbai-400051.

Point of no return

I invested Rs 7,375 (Rs 1,475 x 5) with M/S Sterling Tree Magnum (I) Limited on February 26, 1995. The amount was invested with the company in the easy retirement teakquity scheme in respect to its project at Pottpuram plantation in Pattipuram, Madurai. I was supposed to start receiving the returns from 2001, but have not received anything to date. The company has its registered office at No. 12 Murrays Gate Road, Alwarpet, Chennai-600018. Its new address since 2002 is Sterling Tree Magnum (I) Ltd, No 5, 41st Street 6th Avenue, Ashok Nagar, Chennai-600083. I have not received a response from the company despite writing to them repeatedly. What am I to do now?

Jahar Bagchi,
47/3, Ramkrishna Ghosh Road, first floor, Calcutta-700050

Company response: No response.

The expert: As per Section 11 of the Consumer Protection Act, 1986, a complainant is supposed to initiate a proceeding within the local limits where the party carries on business or has a branch office or where the cause of action wholly or in part arises. In the present case, the company has its office in Chennai. Thus, the complainant will have to initiate a proceeding before the district consumer disputes redressal forum in Chennai under whose jurisdiction the company has its registered office.

Knocking on closed doors

I am 75 years old and had invested some money (in fixed deposits) with Dunlop which matured in 1998. I sent all the relevant documents to the company on July 16, 1998, which were duly acknowledged by it. But soon afterwards the company closed down. After its takeover by the Ruia Group, I sent two more letters to the company, in March and May 2007, but did not receive any response.

When a new management takes over all the assets of a company, it is but natural that the liabilities of the company also pass on to the new management. Should I approach the consumer court for relief and redress?

Khana Prova Banerjee,
GC182, Sector-III, Salt Lake, Calcutta-700106.

Company response: No response.

The expert: In its order on November 15, 1999, the eastern region bench of the Company Law Board in Calcutta declared Dunlop a sick industrial company within the meaning of the Sick Industrial Company (Special Provision) Act, 1985, in accordance with the BIFR order on June 22, 1998. Section 22 of the Sick Industrial Company (Special Provision) Act, 1985, does not place any bar on the hearing of a complaint against a “sick” company by a consumer forum in view of the case of the National Consumer Disputes Redressal Commission, New Delhi, reported in 2006 CTJ 1008. Such being the circumstances, the complainant can approach the consumer forum within whose jurisdiction the company has its office.

In a fix

I had invested Rs 60,000 in four fixed deposits with M/S Duncan Industries, 31 Netaji Subhas Road, Calcutta-700001. The maturity dates were May 28, 2002; October 10, 2002; January 7, 2003 and January 10, 2004. I am yet to receive the money. Continuous appeals to the company, mentioning my age (78 years), and asking them to pay me the amount as soon as possible have gone in vain. I approached the company law board in Calcutta, the director of the ministry of consumer affairs, New Delhi, and also registered on www.investorhelpline.in, which deals with company securities and deposits, but all in vain. What else can I do to recover my money?

B.N.Chatterjee,
Eeleventh floor, 68B, Ballygunge Circular Road, Calcutta-700019

Company response: No response.

The expert: It is really unfortunate that, in spite of the maturity of the fixed deposits, the matured amount has not been paid to the complainant. When a company or a firm invites deposits on promise of attractive rates of interest and prompt repayment of principal and interest on the expiry of the stipulated period with full security for the investment in the shape of the assets of the company or firm, it is in essence an offer by the company to interested persons a safe avenue for the investment of their funds with an assurance of prompt repayment and full security of investment. The arrangement enables the company or firm to use the funds deposited with it for the purpose of its business. Such a transaction is clearly one of providing service for a consideration and the depositor is clearly a consumer under the Act. Thus, it would be wise to file a complaint before the Calcutta district consumer forum, Unit-1, under whose jurisdiction the company has its registered office, without delay.