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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
J.M. Malik, Presiding Member, S.M. Kantikar, Member
Nagaraj Narayan Katti & Anr. - Complainants
Versus
ITC Ltd. & Ors. - Opposite Parties
Consumer Complaint No. 184 of 2012
Decided On : 21-08-2013
Shares - Consumer Protection - Consumer Protection Act, 1986 - Section 2(1)(d)(ii), Section 36A of Monopolies and Restrictive Trade Practices Act, 1969, Sale of Goods Act, 1930 - The court discussed the question of whether the Shareholders or their Legal Representatives are 'consumers' under the Consumer Protection Act, 1986. The court referred to various legal provisions and interpretations including the definition of 'consumer', the meaning of 'goods', and the concept of 'commercial purpose'. The court concluded that the Consumer Fora is not empowered to decide the question of shares and dismissed the complaint.
Fact of the Case:
The complaint involved a dispute over shares issued by ITC Ltd. The complainants sought the issuance of new shares or payment of a specified amount, alleging deficiencies on the part of the opposite parties. The opposite parties contested the maintainability of the case.
Finding of the Court:
The court found that the Consumer Fora lacked jurisdiction to decide the case related to shares, citing various legal precedents and interpretations. The court dismissed the complaint and granted the complainants the liberty to approach the appropriate forum for redressal.
Issues: The key issue was whether the Shareholders or their Legal Representatives are 'consumers' under the Consumer Protection Act, 1986. Additionally, the court addressed the maintainability of the case and the jurisdiction of the Consumer Fora.
Ratio Decidendi: The court's decision was based on the interpretation of the definition of 'consumer', the concept of 'goods', and the exclusion of commercial purposes. The court also relied on legal precedents and authoritative interpretations to determine the jurisdiction of the Consumer Fora.
Final Decision: The court dismissed the complaint and granted the complainants the liberty to approach the appropriate forum for redressal, emphasizing that the Consumer Fora lacked the power to decide the question of shares.
ORDER :
J.M. Malik, Presiding Member
The instant complaint swirls around the question of shares. The key question which falls for consideration is ‘whether the Shareholders or their Legal Representatives are ‘consumers’ under the Consumer Protection Act, 1986?’.
2. The present complaint has been filed by Shri Nagaraj Narayan Katti, complainant No. 1 and his wife, Mrs. Sushma Nagraj Katti, complainant No. 2.
3. ITC Ltd. Investor Service Cell, opposite party No. 1 issued various shares in the name of Shri Narayan Rango Katti and Mrs. Indira Narayan Katti, father and mother of complainant No. 1. The shares issued are as under:
| (a) | 150 shares under Certificate Nos. 12932 and 12933 dated 25.1.1955. |
| (b) | 275 shares under Certificate No. 16096, 30252 and 30253 dated 20.3.1970. |
| (c) | 70 shares under Certificate Nos. 59597, 60300 dated 14.11.1974. |
| (d) | 99 shares under Certificate No. 122237 dated 10.2.1977. |
| (e) | 118 shares under Certificate Nos. 201073 and 201074 dated 14.6.1978 |
| (f) | 142 shares under Certificate Nos. 278679 and 278680 dated 29.8.1980. |
| (g) | 15 Nos. of bonds bearing certificate 097044 issued under Share Exchange Scheme. |
4. Unfortunately, the second holder, namely, Indira Narayan Katti expired during the year 1983. On 31.3.1984, the name of Smt. Indira Narayan Katti was deleted by opposite party No. 1 and it inserted the names of both the claimants along with the name of first holder, Shri Narayan Rango Katti. That is to say, 75 shares issued under Certificate No. 047009 dated 1.7.1984 by opposite party in the name of late Shri Narayan Rango Katti and both the complainants on 1.7.1984. Again on 1.7.1985, 75 shares issued under Certificate No. 183308 by opposite party No. 1 in the name of Shri Narayan Rango Katti.
5. In the year 1988, Shri Narayan Rango Katti expired. After the death of their parents, the complainants shifted to Bangalore from Pune. The opposite party was duly informed about the death of first holder as well as change of address. The opposite party No. 1 sent a letter dated 29.12.1990 at the new Bangalore address, which shows that opposite party No. 1 had updated their records. Vide letter dated 1.8.1991, the opposite party No. 1 showed their inability to change the records in spite of being aware of the death of first holder and also informed that warrant No. 57290 for Rs. 1,167.90 was retained. It is averred that in the process of shifting, the entire correspondence with respect to these shares got misplaced. However, the complainants were able to retrieve some of the correspondence from their chartered accountant in Pune in June, 2011. They sent the document by speed post to opposite party No. 1 on 16.7.2001. The complainants contacted Mr. Ajoy Singh, Officer, Investor Service Cell, opposite party No. 2 several times on phone, but received no response.
6. The complainants were shocked to receive e-mail dated 25.1.2012 in which it was stated that a total of 6424 shares of Rs. 10 each which were originally standing in the joint names of Mr. Narayan Rango Katti, Mr. Narayan N. Katti and Mrs. Sushma Nagraj Katti under account No. 11/8976, have been sub-divided into shares of Rs. 1each and along-with bonus shares, new share certificate amount to a total of 96,360 shares of Rs. 1 each were sent to 49/2, Rambag Colony, Pond Road, Pune-411 038 on 25.10.2005. The complainants were shocked to read that they were dematerialized on 16.8.2006 under Demat Account No. 1N301330/19779875 for which Stock Holding Corporation of India, opposite party No. 3 acted as the Depository Participant. The complainant wanted the details. The opposite party No. 1 did not furnish the same. In the meantime, it also came to knowledge of the complainants that three persons were arrested for fraudulent transfer of shares in which one of the Demat account was for the shares of the complainant
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