ORIENTAL BANK OF COMMERCE LTD. vs SHRI HARCHARAN DAS LOOMBA

The Supreme Court upheld the Tribunal's order directing the appellant bank to convert the respondent's 500 partly paid-up shares into 250 fully paid-up shares under Section 19(2) of the Displaced Persons (Debts Adjustment) Act, 1951. The Court clarified that the expression 'no cause for such refusal' means 'no good cause for refusal', emphasizing that the bank's prior order for capital reduction could not deprive displaced persons of their statutory rights. The Court affirmed that a displaced person is not obligated to exercise the option provided by the Company Judge and can seek relief under Section 19(4) of the Act.