STOCK HOLDING CORPORATION OF INDIA LTD v VIMAL RAOSAHEB CHOUGULE & ORS (MAHARASTRA STATE COMMISSION)
Decided on: 06/06/2011
The Appeallant Company (”Stock Holding Corporation of India Ltd”) was providing depository facilities to investors within the meaning of the Depository Act, 1996. The Respondent had opened a Demat account with appellant and transacted shares through their sub brokers. When the appeallant made enquiries about transactions of transfer of shares, which were carried out through sub brokers, the complainants flatly denied and held the depository Participant liable for deficiency in service rendered.
In the aforesaid case the Mahrastra State Commision held that:
i) The nature of service hired from the appeallant for which deficiency in service is alleged relates to a commmercial transaction i.e. Trading in shares for profit or loss, which is not covered under the description of a consumer within the meaning of Consumer Protection Act, 1986
ii) Though the complainants received monthly statement from the appeallant covering the transactions of transfer of shares from time to time, they had maintained silence and did not compalin about the fradulant transfer.
iii) Also it was not a case of any false/tampered signature.