How to cover loss?
S Singh
(Querist) 02 September 2016
This query is : Resolved
Sir,
I had purchased 100 shares of Jet airways at Rs. 452.50 per share from a person vide off-market demat account shares transfer.
I had paid the shares price in cash.
The person lodged an fir u/s 420 claiming he did not receive the money.
The police freezed the shares in my demat account by writing letter to my depository ("stating to keep freeze till order of any Court comes") .
The Court convicted me and ordered me to return the shares to the complainant after the period of appeal is over.
I filed timely appeal at sessions Court which is till date pending.
The police again wrote a letter stating the reference of their previous letter and informed the depository of the latest Court order which was upon me.
The depository misread the police letter which was in Marathi and thought the order was for them and without taking my signature or mandate transferred the shares to the complainant.
I have filed a suit (in person) against the depository claiming compensation for breach of contract.
Will I receive the compensation? or Will the outcome of this case be dependent upon my wining of the criminal case appeal?
Thanking you in anticipation.
Guest
(Expert) 02 September 2016
Please give extract of the court order to examine and analyse.
Your query, "Will I receive the compensation?" is quite irrelevant, as future is always uncertain. None can predict whether you will receive compensation or not. All that depends upon the judgment based on how effectively you present the case in the court.
S Singh
(Querist) 02 September 2016
5.) "Muddemal property: i.e. freezed shares 100 (Jet Airways) in the D-Mat A/c No. 10785631 of accused with Sharekhan Company be handed over back to the informant after the period of appeal is over." --This order as dictated by the Magistrate was intended for me to instruct to my depository and was not for the depository directly to make any transfer. This was also specifically stated in the police letter to the depository.
Kumar Doab
(Expert) 02 September 2016
State police prefers state language.
The depository could have got it translated or requested for bilingual communication in English.
Guest
(Expert) 03 September 2016
Dear Mr. Singh,
You have missed to mention whether the depository transferred the shares within or after the specified period of appeal was over? While making appeal, if no stay was taken and the shares were transferred after expiry of the period of stay, the action of the depository to transfer the shares on your behalf cannot be challenged. Now everything depends upon the decision on your appeal. The order of the court is, "after the period of appeal is over," not after the period of appeal and its pendency till decision."
Filing an appeal does not automatically stay the orders of the court, unless appropriate stay is specifically arranged before the period of appeal.
S Singh
(Querist) 03 September 2016
The depository transferred the shares on the 61st day after the Magistrate order. My appeal is pending. If I get acquitted then? Most importantly when the order is intended for me then how on earth can they breach the signature clause mentioned in the contract? What is be the remedy for me?
Rajendra K Goyal
(Expert) 03 September 2016
Well advised, agree with the expert P S Dhingra ji.
If no stay exist, Sharekhan Company was justified in returning the shares as per court orders.
Guest
(Expert) 03 September 2016
Mr. Singh,
Your reply does not satisfy my query. My specific question was about, "within or after the SPECIFIED period of appeal" not on which day transferred.
By the way, what was the period of appeal allowed to you through the order?
S Singh
(Querist) 03 September 2016
The appeal period from a judgment of Lower Court to the Sessions Court is of 30 days. I had filed appeal on the 18th day. Furthermore this issue should not arise since the Court order was upon me, what locus standi do they have?
S Singh
(Querist) 03 September 2016
Even if it was a direct order for eg. Court order upon the husband to pay maintenance of Rs. 5,000/- per month to his wife, if this order is showed to husband's bank, can the bank start giving Rs. 5,000/- per month to his wife without the husband's permission?
Guest
(Expert) 03 September 2016
Mr. Singh,
If you go through the bulky application form for depository account, you would find one power of attorney form also in favour of your depository that you would have signed.
Since you did not transfer the shares even after appeal period, action of the depository cannot be treated as wrong.
H.M.Patnaik
(Expert) 03 September 2016
Experts are right .Unless a stay is obtained, as per language of the order passed by lower forum, action for transfer of share taken cannot be challenged .
You have to wait till the pending appeal is finalised and action can be taken in accordance with the order.
S Singh
(Querist) 03 September 2016
I have my full copy of agreement wherein I had confirmed that there is no POA. Let me also tell you that the day I filed appeal, the order by default got stayed u/s 452 (4) of Crpc. (Pls. Checkout that) therefore there was no need for me to take out stay order. You tell that I have to wait till the pending appeal is finalised, but why? If you can give reason it shall be much appreciated.
Guest
(Expert) 03 September 2016
Mr. Singh,
Your query has been replied on the basis of the facts narrated by you.
Your latest post reveals, you know the law, may be being a law student and your query also seeming to be an academic query.
If there is even a slightest truth in your story, your present question, "You tell that I have to wait till the pending appeal is finalised, but why?" is not justified, as that can be replied by your own lawyer, who is supposed to know the complete background and also have acess to complete set of your documents.
If you want reply to your question fom any of the expert here, you may better send him your earlier judgment, present appeal case as well as the copy of your agreement, which you state that to be in your possession.
S Singh
(Querist) 03 September 2016
Sir, as stated earlier that I have filed suit in person, hence I have done little homework. Since I don't have any lawyer, thats why I am raising this query at this law forum. Hence it will be very kind of you if you could satisfy my this query:- "You tell that I have to wait till the pending appeal is finalised, but why?"
Rajendra K Goyal
(Expert) 22 September 2016
Full case file and orders of court need to be referred, discuss with local lawyer.
Kumar Doab
(Expert) 22 September 2016
Online discussions have its own limitations.
Certainly all case related docs and inputs should be examined for a considered opinion.
Probably you are very close to the Experts.
If you wish seek an appointment and benefit from the counsel of experts.
