TaxTMI 
TaxTMI 
1994 (2) TMI 230
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....P. No. 2173 of 1993. 3. The brief facts of the complainant are these : The second opposite party is the Madras Stock Exchange and the first opposite party is a Stock and Share Broker and is a member of the second opposite party. According to the complainant he is a client of the first opposite party and has been having regular business in the purchase and sale of shares with the first opposite party and paying him brokerage and commission. The complaint is in respect of two transactions. In September 1990, the complainant delivered to the first opposite party through Mr. R. Govindaraj, Chartered Accountant, 100 shares of U.B. Petroproducts Ltd. and 100 shares of T.V.S. Electronics Ltd. for sale. There was no response from the first opposite party and when contacted, the first opposite party told the complainant that the shares certificates were misplaced or stolen from his office. The complainant contacted T.V.S. Electronics Ltd. and U.B. Petroproducts Ltd. Harita Finance Ltd. who is a Share Registrar of T.V.S. Electronics Ltd. informed the complainant by its letter dated 16-8-1991 that the shares have already been transferred in the name of one R. Madhavan and requested the comp....
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....ed that Mr. R. Govindaraj gave 100 T.V.S. Electronics Ltd. and 100 U.B. Petroproducts Ltd. shares for sale. As the documents were misplaced in the office of the first opposite party, the first opposite party delivered 100 shares of T.V.S. Electronics Ltd. and 100 U.B. Petroproducts Ltd. shares on 20-9-1991 to Mr. Govindaraj under delivery bill No. 7471. As per the instructions of Mr. R. Govindaraj, the said shares were sent for transfer to the complainant. This opposite party did not receive any service charge or stamp charges. As regards other transaction, the case of this opposite party is that on 9-1-1991 Mr. Govindaraj purchased 500 shares of Shyam Vinyl Ltd., at Rs. 14.25 in the name of the complainant. The documents for the said shares were delivered to Mr. Govindaraj on 21-6-1991. But no payment was made. After several re-minders, he paid Rs. 7,325 on 10-10-1991 which included Rs. 7,125 towards the cost of 500 Shyam Vinyl Ltd., shares and Rs. 210 towards stamp charges and postage charges. It is the further case of the first opposite party that Mr. Govindaraj gave 600 Indo-Gulf Fertilizers shares standing in the name of the complainant for sale. The complainant signed in the ....
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....ange. The business of a share broker is to buy and sell shares for others, for which the share broker receives a brokerage/commission of 1.5 per cent on the price. This is un-doubtedly a service within the meaning of section 2(1)(o) of the Act which is very exhaustive. 9. According to the complainant, he was having dealings with the first opposite party in the purchase and sale of shares and the first opposite party was introduced to him by Mr. R. Govindaraj, a Chartered Accoun-tant. The case of the first opposite party is that he never knew the complainant and it was Mr. Govindaraj who was dealing with the first opposite party in the sale and purchase of shares for the complainant and his wife and hence the complainant is not his client and is not a consumer. Exhs. A6 and A8 communications are from the first opposite party directly to the complainant and there are several letters written by the complain- ant directly to the first opposite party. There is, therefore, no doubt that the complainant was having direct dealings with the first opposite party. Even assuming that the complainant was having dealings with the first opposite party through Mr. R. Govindaraj, the said Govindar....
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....he sale of 100 shares of T.V.S. Electronics Ltd., and 100 U.B. Petroproducts Ltd., and for the purchase of 500 shares of Shyam Vinyl Ltd. for consideration. 11. The second opposite party is the Madras Stock Exchange which is a creature of the statute, namely, the Securities Contracts (Regulation) Act. Its main duty is to regulate the sale and purchase of shares through the share brokers of that organisation. The second opposite party has not rendered any service to the complainant for any consideration and hence the complainant cannot claim to be a consumer qua the second opposite party. The point No. 1 is answered accordingly. 12. Point No. 2 : The complainant has delivered 100 shares of T.V.S. Electronics Ltd. and 100 shares of U.B. Petroproducts Ltd., to the 1st opposite party for sale. As there was no response, the complainant has written Exh. A2 letter to the 1st opposite party asking the 1st opposite party to inform the complainant about the current position. There was no response. The first opposite party has stated that the share certificates had been misplaced or stolen in its office and has promised to issue replace-ment shares. Exh. A6 is the replacement contract note ....
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.... sent to the first opposite party on 14-1-1992 after effecting the transfer. In the counter statement, the first opposite party has stated that the documents for the said shares were delivered to Mr. Govindaraj on 21-6-1991 (vide para 7 of the counter statement) and they have been subsequently sent to Shyam Vinyl Ltd., for transfer in the name of the complainant, but nothing is heard thereof. As already pointed out that the share certificates have been transferred in the name of the complainant and sent to the first opposite party on 14-1-1992 as is evident from Exh. A9 letter dated 15-2-1992 by Shyam Vinyl Ltd. It is the further contention of the first opposite party that in another transaction involving the sale of 600 shares of Indo-Gulf Fertilizers in the name of the complainant, 100 shares were returned for bad delivery on account of difference in signature of the complainant and the complain- ant gave a fresh transfer deed. Fearing bad delivery in respect of other 500 shares, the first opposite party retained with it at the instance of Mr. R. Govindaraj, the 100 T.V.S. Electronics Ltd., shares and 100 U.B. Petroproducts Ltd., shares and the 500 Shyam Vinyl Ltd., shares. It is....