Delhi

New Delhi

TC/1707/2008

Shaliesh Singh Chauhan - Complainant(s)

Versus

M/S. Kotak Securities Ltd. - Opp.Party(s)

21 Apr 2015

ORDER

CONSUMER DISPUTES REDRESSAL FORUM-VI

(DISTT. NEW DELHI), ‘M’ BLOCK, 1^STFLOOR,

VIKAS BHAWAN, I.P.ESTATE,

NEW DELHI-110002.

 

Case No.TC/1707/08                          Dated:

In the matter of:

Shailesh Singh Chauhan,

S/o Sh. Naubat Singh Chahuhan,

R/o H-563, Alpha-2,

Greater Noida-201308

……..COMPLAINANT

       

VERSUS

Kotak Securities Ltd.,

Through its Regional Head,

Mr. Jayanth Ranganathan,

202-217, Ambadeep Building,

Kasturba Gandhi Marg, Connaught Place,

New Delhi-110001

                         ………. OPPOSITE PARTY

 

ORDER

President:  C.K Chaturvedi

 

The complainant alleges deficiency on the part of OP and its representations in conducting the trade in sale & purchase of futures in Stocks, under a DEMAT account, based on investment of money for growth in market. The complainant is otherwise employed as Software Engineer and entered into ang agreement with brokers of OP, for opening a trading account. The complaint is that the OP’s representative purchased more than instructed futures and he suffered losses in the trade of futures. He seeks loss to be recovered from the representative of OP who traded for it. Complainant gives a detail of transaction without his alleged instructions and in details.

The OP in its reply has taken the plea that complainant was not a “Consumer” but a speculator in trade of futures through OP and that agreement stipulated an arbitration mechanism in case of disputes. OP denied all other detailed allegations in the complaint. On merit it stated that complainant failed to maintain the margin required and OP had to square it as per terms of agreement and no deficiency is committed.

We have considered the evidence of both the parties on affidavit. It is plain that trading in futures in a speculator activity for commercial purposes and Hon’ble National Consumer Disputes Redressal Commission in no. of decisions has held that one who trading in stocks or futures or shares is not a ‘Consumer’ and cannot file a complaint for deficiency under CP Act. In view of this, complaint is liable to be held as non-maintainable, and complainant is given liberty to take up the matter with SEBI or by way of arbitration mechanism.

File be consigned to record room.

Copy of the order be sent to the parties free of cost.

 

 

Pronounced in open Court on 21.04.2015.

 

(C.K.CHATURVEDI)

PRESIDENT

                                           

 

(S.R. CHAUDHARY)                 (Ritu Garodia)

MEMBER                                  MEMBER