DISTRICT CONSUMER DISPUTES REDRESSAL FORUM PALAKKAD
Dated this the 30th day of October 2017
Present : Smt.Shiny.P.R. President
: Smt.Suma.K.P. Member Date of filing: 13/03/2017
: Sri.V.P.Anantha Narayanan, Member
(C.C.No.52/2017)
A.Narayanankutty,
‘Aishiyana’,
Kazchaparambu, Kannadi (PO),
Palakkad - Complainant
(Adv.K.Venugopal)
V/s
1. Karvy Stock Brocking Ltd,
Rep.by its Maanging Director,
46, Avenue 4, Street No.1, Banjara Hills,
Hyderabad – 500 034.
2. Karvy Stockk Brocking Ltd,
Rep.by its Branch in Charge,
Branch Office at 12/310, Metro Complex,
Head Post Office Road, Sulthanpet, Palakkad - Opposite parties
678 001
O R D E R
By Smt.Suma.K.P. Member,
The opposite parties is a company dealing with share brocking, by holding shares for their customers and deals with them according to the instructions given by the customer and in case of selling, pay the proceeds to the customer’s bank account, and in case of purchase take the payment from the customers, for which they charge a commission. The complainant was a customer with the opposite party company, and the client code is 215760 and client ID is 19099543, and he was dealing through opposite party No.2 Palakkad Branch. Through opposite party company he was holding certain shares and as per the ‘statements of holdings’ dated.28.10.2016 issued by the Head Office opposite party No.1, he was holding 200 shares of associated Alcohols & Breweries Ltd, and 60 shares of Aurobindo Pharma Ltd. After that he has not instructed opposite party company to sell any of the shares stated therein. As per the opposite party company practice, if a client wants to sell any of his holding share he has to give instructions called ‘delivery instructions’ in writing in the prescribed form.
The ‘holding statement’ issued by opposite party No.2 dated.16.01.2017 it is seen that complainant is holding only 115 shares of Associated Alcohols & Breweries Ltd, and only 10 shares of Aurobindo Pharma Ltd. When enquired about this discrepancy, the Branch in Charge or any other person present in opposite party 2 office was not giving any proper reply. No amount is credited to the bank account of complainant as sale proceeds of these missing share, which means, those share are not sold. The complainant repeatedly wanted the persons managing the Branch Office, opposite party 2 to rectify the mistake and issue corrected statement, which was neglected. In short, complainant feels some mischief or misappropriation has been done to the account of holdings of the complainant.
Therefore, the complainant caused a lawyer notice to the opposite parties and demanded that, within 10 days of receipt of notice all the shares of the Aurobindo Pharma Ltd, and Associated Alcohols & Breweries Ltd, shall be credited to the account of the complainant and a ‘statement of holdings’ shall be issued to him, which was received by the opposite party but not replied nor responded.
The action of the opposite parties are high handed and amounts to cheating. It is clearly a deficiency in service and criminal misappropriation of shares entrusted with them. As per the statement of holdings issued by opposite party 1 the value of one share of Associated Alcohols & Breweries Ltd, is Rs.116/- and value of one share of Aurobindo Pharma Ltd, is Rs.819/-. Thus the complainant lost Rs.50,810/- (85x116 = 9860+50x819 = 40950). Complainant alleges that he is entitled to get the amount from the opposite party. More over much mental agony and injury has caused the complainant due to the deliberate cheating of the opposite party. Hence the complaint is entitled to compensation to the tune of minimum Rs.25,000/- from the opposite party. Hence the complainant had approached before this Forum seeking an order to direct the opposite party to pay a sum of Rs.50,810 + 25,000 as compensation.
Complaint was admitted and notice was issued to the opposite parties for appearance. Both opposite party remained absent inspite of accepting notice. Hence they were called absent and set ex-parte. Complainant filed chief affidavit along with documents. Ext.A1 to A5 was marked on the side of the complainant. Evidence was closed and the matter was heard.
The following issues that arises for consideration are.
1.Whether there is any deficiency of service from the part of opposite parties ?
2.If so what are the relief and cost?
Issues No.1 & 2
It is evident from Ext.A1 that the complainant was holding 200 shares of Associated Alcohol and Breweries Ltd, and 60 shares of Aurobindo Pharma Ltd, and as per Ext.A2 it is seen that he was holding only 115 shares of Associated Alcohols and only 10 shares of Aurobindo Pharma Ltd. The complainant states that no amount is credited to his bank account as sale proceeds. Hence it can be presumed that those shares are not sold. From Ext.A3 series it is also evident that complainant has demanded either the refund of the shares or the amount to be credited to his account but there was neither reply nor response. There is no contradictory evidence to dispute the allegation stated in the complaint before the Forum. Hence the complaint is allowed. As per the statement of Ext.A1 the value of one share of Associated Alcohol and Breweries Ltd. is Rs.116/- and the value of one share of Aurobindo Pharma Ltd.is Rs.819/. Hence the complainant had sustained a loss of (85x116 = 9860 +50x819 = 40950) total in to Rs. 50,810/-. The opposite party is liable to pay the above said amount to the complainant. Hence we direct the opposite party to pay an amount of Rs.50,810/- (Rupees fifty thousand eight hundred and ten only) as the value of missing shares along with Rs.5,000/- (Rupees five thousand only) as compensation and also Rs.1,000/- (Rupees one thousand only) as cost of this litigation.
The afore said amount shall be paid within one month from the date of receipt of this order failing which complainant will be entitled to realize interest at the rate of 9% p.a for the afore said amount from the date of order till realization.
Pronounced in the open court on this the 30rd day of October 2017.
Sd/-
Shiny.P.R.
President
Sd/-
Suma.K.P.
Member
Sd/-
V.P.Anantha Narayanan
Member
Appendix
Exhibits marked on the side of complainant
Ext.A1 - True copy of Statement of Holding,dated.28.10.16
Ext.A2 – True copy of Holding Statement, dated.16.01.17
Ext.A3 series - Acknowledgement card, Postal Receipt and lawyer notice sent by the
complainant’s advocate to 1st and 2nd opposite parties.
Ext.A4 - Client Master List dated.18.12.2015
Ext.A5 - Combined Delivery Instructions by Clients
Exhibits marked on the side of Opposite parties
Nil
Witness examined on the side of complainant
Nil
Witness examined on the side of opposite party
Nil
Cost
Rs.1,000/-
