Form of affidavit filed in complaint in respect of rights issue of equity shares

BEFORE THE DISTRICT FORUM

CONSUMERS PROTECTION ALLAHABAD

In Complaint Case No. 625 of 1994

I, ……………. s/o ………………. r/o …………….. do hereby solemnly affirm and state on oath as under :

1. That I am complainant in the above complaint and as such I am fully acquainted with the facts deposed to below.

2. That the opposite party in this case is a company M/s. Reliance Capital and Finance Trust Limited which has since changed it’s name to RELIANCE CAPITAL LIMITED and it’s registered office is located at Avdesh House 2nd floor Pritam Nagar I Slope Ellis Bridge Ahmedabad.

3. That I was a member of the opposite party when it came out with a Rights issue of equity capital which opened for subscription on 7.12.1992. The Rs. 10.00 equity share was offered at a premium of Rs. 30.00. Rupees 10.00 were to be paid on application and Rs. 30.00 were payable on allotment.

4. I was offered 400 equity shares and was given choice of applying for additional shares. I accepted the offer of 400 shares and applied for 200 additional shares. Accordingly I paid Rs. 6000.00 (Six thousand) as application money.

5. That the allotment was to be competent within six weeks of the closure of the issue. The issue closed for the subscription on 4.1.1993. Other applicants received their share certificates by the end of February but I did not so I requested M/s. Reliance Consultancy Services Limited who are Registrars of the opposite party to send me my share certificates. A photo copy of this letter dated 2.4.1993 sent by registered post on 2.4.1993 has been enclosed herewith as annexure No. 2. I enclosed a copy of the acknowledgment slip issued by the bankers of the opposite party along with this letter. A copy of that slip has been enclosed herewith as annexure No. 1. This letter has been sent to the Registrars by registered post vide postal receipt No. 4169 dated 3.4.1993 issued by the M.G. Marg Post Office Allahabad a photocopy of this has been enclosed herewith as annexure No. 3.

6. That is response to my letter dated 2.4.1994 the Registrar sent me a DUPLICATE copy of the ALLOTMENT MONEY DUE NOTICE (AMDN) but did not send by share certificates. The allotment money due notice contained wrong facts. I have paid the application money Rs. 6,000.00 whereas it shows payment of such application money only to the tune of Rs. 2000.00. This AMDN shows amount payable as NIL whereas it should have been Rs. 10,000.00. A photocopy of this Allotment Money Due Notice has been enclosed herewith as annexure No. 4.

7. That I again sent a letter to the Registrars of the opposite party requesting them to send me a correct Allotment Money Due Notice along with my share certificates vide my letter dated 19.7.1993 a photocopy whereof has been enclosed herewith as annexure 5.

8. That on 28.12.1993 I received a reminder from the said Registrars dated 26.10.1993 to pay the allotment money amounting to Rs. 14,000.00 along with interest @ 8,055 per day from 1.4.1993 till the date of actual payment. A photocopy of this has been enclosed herewith as annexure No. 6.

9. That then on I turned to the opposite party itself and addressed a letter to the Secretary by name stating all the facts and requested him to look into the matter and do the needful at once. A copy of this letter was sent to the Registrars as well. A photo copy of this letter has been enclosed herewith as annexure No. 7. Postal receipts for these two registered letters were issued by the concerned post office photocopies whereof have been enclosed herewith as annexures No. 8 and 9. These letters have been delivered to the addressee vide postal acknowledgment slips photo copies whereof have been enclosed herewith as annexures No. 10 and 11. These letters remained unreplied till date.

10. That the Registrars of the opposite party sent me my share certificates and a revised allotment Money Due Notice to pay Rs. 10,000.00 only but along with interest @ twenty one percent per annum vide their letter No. RCS/RCFT/SW/PO/ 2103/445/94 dated 5.9.1994. Had I received correct Allotment Money Due Notice in time I would have paid the allotment money. Since I did not receive it in time due to the fault of the opposite party, I am not liable to pay any interest. The opposite party was repeatedly requested to issue the AMDN but it never issued a correct Allotment Money Due Notice. However their demand of a certificate from their bankers at Allahabad showing payment of Rs. 6,000.00 as application money was met and such a certificate was obtained and sent to them. Photo copy of the letter dated 5.9.1994 of the Registrars and that of the certificate issued by the bankers of the opposite party M/s. Allahabad Bank Allahabad have been enclosed herewith as annexure Nos. 12 and 13.

11. That I again protested against the demand of interest vide my letter dated 24.12.1994 sent by registered post to the registrars. A photo copy of this letter is enclosed herewith as annexure No. 14 and that of the postal receipt for this registered letter as annexure No. 15.

12. That the Registrars of the opposite party again changed their stance and demanded payment of Rs. 14,000.00 as allotment money from the deponent vide their letter dated 28.12.1994 a photo copy whereof has been enclosed herewith as annexure No. 16.

13. That the said Registrars again changed their view and asked me to pay the allotment money to the tune of Rs. 10,000.00 only but with interest @ 21% per annum vide their letter No. RCS/RCL/SW/48/95 dated 13.5.1995 a photocopy whereof has been enclosed herewith as annexure No. 17. The Allotment Money Due Notice on which the payment has been demanded requires me to pay interest on Rs. 10,000.00 @ 21% p.a. from 1.4.1993 whereas the AMDN itself has been sent to me 5.9.1994 which has been received by me in December, 1994. A copy of this Allotment Money Due Notice has been enclosed herewith as annexure No. 18.

14. That hereafter the opposite party itself appeared on the scene and it sent me a notice to pay the allotment money amounting to Rs. 14,000.00 on or before 19.8.1995 failing which all my payments made to the company along with the equity shares issued to me out of the rights issue of 1992 shall stand forfeited. A photo copy of this notice dated 15.7.1995 has been enclosed herewith as annexure No. 19.

15. That allotment money cannot be paid without the Allotment Money Due Notice which has never been served on me in correct shape. Some times it was given to pay Rs. 14,000.00 allotment money and some times to pay Rs. 10,000.00 only but every time it demanded payment of interest also whereas I am not liable to pay interest as it is the opposite party which is at fault and which did not send me to correct Allotment Money Due Notice in time. Had they sent me correct AMDN in time I would have paid the allotment money within the allowed time. So the demand of interest is illegal as the interest is being demanded for delayed period of payment of allotment money and delay is the result of fault of the opposite party.

16. That it was duty of the Registrars of the opposite party to send me the share certificates and the allotment Money Due Notice much before the time fixed for payment of the same. The last date for payment of the allotment money was 15.3.1993 but the Allotment Money Due Notice was received by me for the first time in July 1993. Thus the registrars of the opposite party have acted in most negligently. They have even not replied my all letters addressed to them. The opposite party has not given any reply of my letters sent to them till date. All this had caused mental torture of the deponent besides financial loss suffered by him.

17. That the opposite party has been taking different position at different times in regard to the demand of the allotment money which is obvious from their correspondence as below :

This goes to show that they are still not sure as to what is the amount which has to be recovered from the deponent.

I, Surendra Singh the deponent do hereby verify that the contents of this affidavit paras 1 to 17 are true to my personal knowledge and no part of it is false nor any material has been concealed.

Verified today dated………………….. here at Allahabad.

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(Surendra Singh)

Deponent