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TAMIL NADU STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, CHENNAI
Hon’ble Thiru Justice M.S. Janarthanam, President &
Tmt. Banumathi Baskaran, Member
S.P. SABAPATHY—Complainant
versus
CHONA FINANCIAL SERVICE PRIVATE
LTD.—Opposite Party
O.P. No. 152 of 2000—Decided on 4.1.2001

Advocates:
Counsel for the Parties :
For the Complainant :Mr. C.C. Chellappan, Advocate.
For the Opposite Party : None.

The court's decision was influenced by the provision of the Consumer Protection Act, 1986, Section 13, which does not contemplate the determination of complicated issues of fact involving taking of elaborate oral evidence and adducing of voluminous documentary evidence.

Headnote:

Stock Exchange - Deficiency in Service - Consumer Protection Act, 1986, Section 13 - The court declined to exercise jurisdiction as the issues involved could not be determined without taking elaborate oral evidence, directing the complainant to seek remedy before a competent Civil Forum.

Fact of the Case:

The complainant, an investor in shares, alleged deficiency in service by the stock broker for selling shares without proper instructions.

Finding of the Court:

The court found that the issues could not be determined without taking elaborate oral evidence and directed the complainant to seek remedy before a competent Civil Forum.

Issues: The main issue was the alleged deficiency in service by the stock broker in selling shares without proper instructions.

Ratio Decidendi: The court declined to exercise jurisdiction as the issues involved could not be determined without taking elaborate oral evidence.

Final Decision: The complaint was rejected, and the complainant was directed to seek remedy before a competent Civil Forum.

ORDER

Thiru. Justice M.S. Janarthanam, President—This action has come up for admission initially before us on 4.10.2000 on which date we heard learned Counsel Mr. C.C. Chellappan appearing for the complainant.

2. The matter was, however, adjourned without the arguments getting completed to 18.10.2000 and thereafter got adjourned to several dates and finally came up before us for disposal at the admission stage. In the mean time, the said learned Counsel appearing for the complainant sought help and yeoman assistance of another Counsel namely, learned Counsel Mr. S. Soundararajan. We heard the arguments of learned Counsel Mr. S. Soundararajan representing learned Counsel Mr. C.C. Chellappan appearing for the complainant.

3. We have given anxious consideration to the arguments projected by the said learned Counsel in the light of the factual matrix placed on record by way of averments in the complaint and the documents filed along with it.

4. The sum and substance of the case of the complaint bristles to this :

The complainant, S.P. Sabapathy, is an investor in shares and he utilized the services of the opposite parties, Chona Financial Service Private Ltd., the broker of the Stock Exchange in purchasing shares of various institutions. It appears, he had given instructions to the opposite party to purchase certain shares of certain institutions. The opposite party also appeared to have purchased the shares for and on behalf of the complainant. The shares so purchased, the complainant would say, had been sold out by the opposite party, Stock Broker, without getting proper instructions from him. This sort of an act on the part of the opposite party, he would say, would amount to deficiency in service calling for action.

5. From the factual matrix as adverted to by the complainant by way of incorporation of averments in the complaint and the documents filed along with it, nothing is traceable as respects the manner and methodology adopted in giving instructions by him to the opposite party Stock Broker relatable to the purchase or sale of shares. To put it otherwise, nothing is traceable as to whether the instructions said to have been given by the investor complainant to the opposite party Stock Broker is oral or written as respects the purchase or sale of shares. Confronted with such a situation, we questioned the same learned Counsel on this aspect of the matter. The said learned Counsel without any hesitation whatever admitted across the bar that 99% of the transactions in the Stock Exchange take place by way of instructions given orally through telephone or other means of communications and, therefore, there is no wonder, he would say, that the transactions governed by the case also took place as a consequence of oral instructions given by the complainant/investor to the opposite party Stock Broker. Such being the case, the adjudication of the dispute between the complainant and the opposite party as respects the alleged deficiency in service on the part of the opposite party Stock Broker is capable of being decided only on the adduction of voluminous oral evidence of a complicated nature.

6. At this juncture, we may profitably pen down the weighty observations of the National Commission. In the case of M/s. Special Machines v. Punjab National Bank & Ors., 1991 (1) CPR 52, reflected in paragraph 28 at page 62 which reads as under :

“28. The procedure for disposal of complaints under the Act has been laid down in Section 13 of the Act, the provisions of which are made applicable to proceedings before the National Commission by Rule 14(2) of the Consumer Protection Rules, 1987. Sub-sections (2) and (3) of Section 13 of the Act show beyond doubt that the Statute does not contemplate the determination of complicated issues of fact involving taking of elaborate oral evidence and adducing of voluminous documentary evidence and a detailed scrutiny and assessment of such evidence. It is no doubt true that the Forums constituted under the Act











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