MRTPC penalises Essar Steel

MRTPC also ordered Essar Steel to pay another Rs 2500 on account of litigation and other expenses incurred by the complainant. It, however, dismissed the complaint against Essar Steel’s registrar and transfer agent Data Software Research Co Ltd as the latter had taken over from Karvy Consultants which sent the debenture certificates to thewrong address.

"The mistake in the address and mailing of debenture certificates, interest and dividend warrants took place when Karvy Consultants Ltd were handling the share transfer work on behalf of Essar Steel," MRTPC members SK Parthasarathy and RK Anand said in their order.

The complainant, Neena Sharma, had alleged that Essar Steel deliberately changed her address during 1991-93 from R K Puram, Delhi to Haldia Refinery, District Midnapur, West Bengal resulting in non-delivery of the certificates and subsequent rights offer. However, Essar Steel said there was an inadvertent mistake in the register of shareholders due to which the applicant’s address was shown in West Bengal and as a result, she did not get the papers.

Sharma had applied for 40 convertible debentures of Rs 180 each in 1989 of Essar Gujarat (now Essar Steel) through Karvy Consultants and was allotted 25 debentures but did not receive the debenture certificates.

Subsequently, Essar Steel also appointed Data Software ResearchCompany in place of Karvy Consultants and in 1992 came out with a rights offer which Sharma did not receive. However, she sent in her application through a duplicate form and on enquiry came to know of the change in address from the local office of Essar Steel.

Sharma claimed a compensation of Rs 24,000 on account of loss of interest on delayed payments.