Consumer Disputes Redressal Forum, Unit -I, Kolkata,

8B, Nelie Sengupta Sarani, Kolkata-700087.

CDF/Unit-I/Case No. 81 / 2010.

1)           Sri Brahma Gopal Paul,

507, Jawpur Road, Kolkata-700074.                       ---------- Complainant

1)           M/s K & A Securities Pvt. Ltd.,

6, Little Russel Street, Kolkata-700071.

2)           M/s K & A Securities Pvt. Ltd.,

A-20, Friends Colony, New Delhi-110065.             ---------- Opposite Party

Present :        Sri S. K. Majumdar, President.

                        Sri T.K. Bhattacharya, Member

The instant complaint arises out of the petition filed by Sri Brahma Gopal Paul of 507, Jawpur Road, Kolkata-74 and formerly of 283, R.N. Tagore Road, Kolkata-77 filed on 3/3/10 to initiate a case u/s 12 of C.P. Act, 1986 against (1) M/s. K & A Securities Pvt. Ltd. with local office at 6, Little Russel Street, Kankaria Estate, 9^th floor, Kolkata-71 and (2) M/s. K & A Securities Pvt. Ltd. having its corporate office at A-20, Friends Colony (East), New Delhi-110065.

          Specific complaint of the petitioner is that he applied for the membership of O.P. no.1 and got their membership code no.K25801 and DMAT A/C no.1202420000078770 from O.P. no.2 (annex-A).

          Since opening of the said DMAT A/C the petitioner paid Rs.90,000/- to the O.Ps. by three cheques to be drawn on UCO Bank, Belgachia Branch, Kolkata which were encashed by the O.Ps. (annex-B). The said amount was paid to O.Ps. for the transaction of equity shares through the said DMAT A/C and in addition to that the petitioner also paid Rs.6880/- on 5.9.08 to O.P. no.1 for the purchase of equity share of Reliance Power Ltd. In all the aforesaid transactions between the petitioner and O.Ps. one Sandip Das acted as the middleman or associate.

          But the petitioner was totally in the dark about the business transaction of the equity shares made through the said DMAT A/C and in respect of the present status of the equity shares of Reliance Power Ltd. in spite of his letter dt.3/11/09 through his advocate sent to the O.Ps. by regd. post with a/d on 4/11/09 (annex-C). But there was no response from the O.Ps.

          Hence, the complaint has been filed by the petitioner u/s 12 of C.P. Act, 1986 against the O.Ps. for deficiency of service.

          Now, the question which naturally crops up is to ascertain whether the petitioner is a consumer within the purview of C.P. Act, 1986. Before ascertaining the status of the petitioner let us find out what is meant by “Transaction”, “Speculative Transaction” and “Equity Share”.

          In The Concise Oxford Dictionary (Ninth Edition,1995, P-1480), ‘Transaction’ means a piece of esp. commercial business done; a deal (a profitable transaction). In Chamber’s Twentieth Century Dictionary (Second Reprint 1970, P-1168) “Transaction’ means act of transacting : a piece of business performed. In Webster’s Seventh New Collegiate Dictionariary, P-939) ‘Transaction’ means (i) an act, process or instance of transacting (2) Something transacted ; esp : a business deal. In Mitra’s Legal & Commercial Dictionary (Sixth Edition 2006, P-851) ‘Transaction’ means some business or dealing which is carried on or transacted between two or more persons.

          In this Legal & Commercial Dictionary (P-806) ‘Speculative transaction is described as a transaction in which a contract for purchase and sale of any commodity including stocks and shares is periodically or ultimately settled otherwise than by actual delivery or transfer of the commodity or scrips. In this connection it is interesting to note the meaning of ‘Speculation’ (P-806). It means bet, calculated risk, fortuity, gamble, gambling, gaming, wager, buying or selling with expectation of profiting by a rise or fall in price, engaging in hazardous business transactions, or investing in risky securities or commodities with the hope of an usually large profit.

          According to the Concise Oxford Dictionary (Ninth Edition, P-457) ‘Equity’ means (a) the value of the shares issued by a company (b) (in pl.) stocks and shares not bearing fixed interest.

          In Mitra’s Legal and Commercial Dictionary (P-314), Equity Share Capital means with reference to any such company, all share capital which is not preference share capital.

          In share trading in such a risky transactions, overnight the rags become rides and an another the riches become rags.

          Now in the instant complaint, the petitioner has admitted that he has been engaged in equity share transaction, i.e. in speculative transaction. In short, he appears to be engaged in buying and selling of equity share for earning enormous profit, i.e. for commercial purpose.

          Section 2(d) of C.P. act, 1986 where definition ‘consumer’ is enunciated, does not include a person who obtains goods for resale or avails of services for any commercial purpose.

          Moreover, nowhere in the complaint of the petitioner it is mentioned that the petitioner’s engagement in equity share transaction is for earning his livelihood by way of self-employment.

          Keeping in view of the provisions of C.P. Act, 1986, it appears that the petitioner is not a consumer within the meaning of Sec.2(d) of C.P. Act, 1986. Thus the petition of complaint filed by the petitioner is not maintainable and thus, the petition of complaint stands rejected.

          However, the petitioner is at liberty to approach SEBI for his redress.

          The petition is thus disposed of from this Forum.

          No order is passed as to the cost.

          Fees paid are correct.

          Supply of certified copies of this order to the parties on receipt of prescribed fees.