1994 (11) TMI 309

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....e opposite party's company in the secondary market. He sent on 16-8-1988 the share certificates along with transfer application for being transferred in his name from that of original shareholder Y. Saraswathamma. According to the complainant, the opposite party received the letter on 22-8-1988. As no refusal was communicated within a period of 2 months as required under section 111(2) of the Companies Act, it must be deemed that they have agreed to transfer the shares. But in spite of the reminders dated 30-9-1989 and 23-10-1989 the opposite party did not effect transfer but on 2-12-1989 they sent a letter stating that they did not receive the transfer deed. According to the complainant this version is false. Along with the letter dated 2-....

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....nt of Rs. 8,700 and also costs of Rs. 500 and in all Rs. 72,500. 4. Aggrieved by the said order, this appeal is preferred. It is submitted by he learned counsel for the appellant that the complainant is not a consumer that the shares were sent by the complainant to one Mass services Ltd. at C3, Community Centre, Safdarjung Development Area, New Delhi, whereas the office of Modi Cements Ltd., is at 32, Community Centre, New Friends Colony, New Delhi, and that therefore the failure to effect the transfer of shares cannot be attributed to the opposite party. Me are not inclined to accept the contentions. It is next submitted that in any event directing payment of compensation at the rate of Rs. 50 per day from 22-8-1988 to 10-3-1992 is not ....

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....e complainant on 23-5-1992. It is therefore clear that the opposite party has knowledge about the application of the complainant for transfer and there are laches on their part in effecting the transfer in the name of the complainant. It is next submitted that the compensation awarded is too high. We are inclined to agree with the aforesaid contention. The face value of the shares is Rs. 10 each and the application is made for transfer of 100 equity shares. The value of the equity shares put together is about Rs. 1,000 taking their market value to be the face value. There is no record to show to what extent there is appreciation of value and whether there is any appreciation of value at all in the market. In these circumstances we consider ....