Consumer protection act
Aravik1992
(Querist) 20 May 2014
This query is : Resolved
Whether a shareholder can file a complaint under consumer protection act, 1986 ?
Devajyoti Barman
(Expert) 20 May 2014
kindly give details of your query.
It is now vague to say the least.
Kiran Kumar
(Expert) 20 May 2014
pls state the actual facts of the case.
ajay sethi
(Expert) 20 May 2014
state facts of your case
Aravik1992
(Querist) 20 May 2014
There is a person "A" who has given some amount of money to "B" (a company )to invest this money in the share market. Now , after some years, there is some dispute between them as A didn't get the expected principle amount + profit) which was promised by B to him. Now, A alleges that every transaction which B has entered into with his money was without his consent. Whereas B alleges that A was having knowledge of this and says that still he can get his money by selling the shares (which B purchased in the name of A).
So, A has filed a complaint in the consumer forum and B in his reply saying that as "A" is a shareholder, he will not come under the term "Consumer" under CP, Act as this transaction was of a commercial nature.
Devajyoti Barman
(Expert) 20 May 2014
transactions made in stick market through a broker is very hard to prove.
I find little merit in your case.
ajay sethi
(Expert) 20 May 2014
since it involves disputed questions of facts consumer forum may direct parties to move civil court for redressal of grievances
Sankaranarayanan
(Expert) 20 May 2014
Hope they taken signature from you in their agreement . SO if you have the agreement copy then broker then find the clause then discuss with local lawyer
Advocate Bhartesh goyal
(Expert) 20 May 2014
No,Neither A has hired any services nor he bought any product/goods from B against any consideration,moreover A has invested the money to earn profits thus transaction is in nature of commercial so A is not a consumer.
d) "consumer" means any person who, -
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person;
Explanation : For the purposes of sub-clause (i), "commercial purpose" does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment;
Rajendra K Goyal
(Expert) 20 May 2014
Agree with the expert Advocate Bhartesh goyal ji.
Aravik1992
(Querist) 21 May 2014
Thank you experts for you answers.
