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S Singh   11 August 2015

Agreement breach

I had opened a demat account with a depository in 2006.
I purchased some shares from its seller and the seller delivered them into my demat account vide an off-market transfer in 2009.
The seller lodged an FIR against me and claimed the shares in 2009.
The police sent a letter to the depository in 2009 to keep freeze upon the shares till that time till order of Court comes.
The Court convicted me in 2012 and in its Judgment order sentenced me to suffer 3 yrs. imprisonment with fine of Rs. 4000 and also ordered me to return the muddemal property (shares) to the complainant after the period of appeal is over.
I immediately within 30 days of the order filed an appeal which is till date pending.
The police approx. one month after the Judgment order date sent letter to my depository making reference of its previous letter of 2009 and stated that “The Magistrate had ordered the accused to handover the shares back to the complainant after the period of appeal is over."
But the depository by mistake thought that the order was for them and in a wrongful assumption also calculated 60 days as the appeal period from the Judgment order date and without taking my signature and authorization transferred the shares to the demat account of the complainant and closed my demat account.

I have also found that no other action of transfer of Muddemal Property (shares) has been taken by any Court.

When I asked the depository to reinstate the shares they stated that they shall not do so and issued a letter of anticipatory cancellation of the contract.
The shares which the complainant received by the mistake of the depository has been alienated by the complainant and are not traceable.
What can be the remedy? Plz. Help

 3 Replies

Advocate Rohit (Advocate)     11 August 2015

you need to send a legal notice to the depository, complainant for handing over the shares back to you. failing which you have to file the suit at city civil court against the depository, complainant and the police officer (if involved in it) and prove that the trasnaction is wrongly done by the depository and that the shares and its dividends, bonus and spilt of shares shall be deposited in your demat account.


Further in your appeal also you have to mention the same so that the court will take cognizance that the depository action has made the part relief infructious due to transfer of the shares.



Adv. Rohit M. Dalmia



S Singh   11 August 2015

As the shares are not traceable, should I make the complainant as party? Or seek any compensation from the complainant?

Isn't the Depository's resposible for their wrongful act?

And as per my agreement with the depository they are liable by agreement (their promise) to pay me my damages. So why shouldn't I press that concept only. Instead of asking from the complainant or making him the party unnecessarily and letting press my agreement with the complainant instead of the depository.

Plz. Help

T. Kalaiselvan, Advocate (Advocate)     17 August 2015

The reply by advocate Mr. Rohit seems to be more suitable eve to your subsequent post, you may follow the steps suggested. 

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