1997 (1) TMI 418 - Commission - Companies Law

Summary

Issues:
1. Transfer of shares and dispute over signatures.
2. Sale of shares at a lower rate to retain bonus and dividend rights.
3. Interpretation of receipt and entitlement to bonus and dividend rights.
4. Calculation of interest on the amount to be paid by the late petitioner.

Analysis:
1. The case involved a dispute regarding the transfer of shares between the late petitioner and the respondent. The respondent alleged that the petitioner's signatures on the transfer deed did not match, leading to a refusal of transfer. The petitioner claimed that the respondent forged her signatures, absolving her of liability for the transfer issue.

2. The petitioner sold 200 shares of a company to the respondent at a lower rate to retain bonus and dividend rights. The State Commission found that the sale transaction occurred before the record date for bonus shares and dividend, and the petitioner was entitled to retain these rights. The State Commission set aside the District Forum's decision and directed the late petitioner to pay the respondent a specified amount.

3. The State Commission's decision was based on the interpretation of a receipt signed by the late petitioner, acknowledging the sale of shares. The receipt indicated that the sale was for a specific amount and that the petitioner undertook to sign all necessary documents for transfer. The State Commission concluded that the respondent was entitled to bonus and dividend rights based on this receipt.

4. In reviewing the case, the National Consumer Disputes Redressal Commission found no error in the State Commission's decision but noted a lack of clarity regarding the calculation of interest on the amount to be paid by the late petitioner. The Commission determined the date from which interest should be calculated and modified the State Commission's order accordingly, dismissing the revision petition with no costs.

This judgment highlights the importance of documenting transactions accurately and the significance of legal documents in resolving disputes related to share transfers and entitlement to financial rights.