E VISHNUMURTHY Vs. P GOVINDAIAH

JUDGEMENT

(1.) THE present revision petition has been filed by E. Vishnu Murthy (hereinafter referred to as the 'Petitioner') being aggrieved by the order of the State Consumer Disputes Redressal Commission, Andhra Pradesh (hereinafter referred as the 'State Commission') which had decided an appeal in favour of P. Govindaiah (hereinafter referred to as the 'Respondent'), who was the original complainant before the District Forum.

(2.) THE brief facts of the case according to the respondent are that he was issued 50 shares of M/s Maharashtra Seamless prior to 12.12.2003 and he requested the petitioner who is a consultant and sub -broker of stocks and shares, to dispose of the said shares. The petitioner thereafter served a memo of confirmation dated 12,12.2003 informing the respondent that the shares were sold at the rate of Rs. 224.40 p. each, thus, amounting to Rs. 11,220. The respondent approached the petitioner several times for the money from the sale of these 50 shares and also requested Malkajgiri Consumer Welfare Association for their intervention with the petitioner but the petitioner did not pay him nor did he reply to either the respondent or to the above Association/Aggrieved by this, respondent filed a. complaint before the District Forum on 25.3.2004 requesting that the petitioner be directed to pay the respondent Rs.11,220, Rs. 1,000 towards miscellaneous expenditure incurred by the respondent and Rs. 5,000 towards compensation for mental torture.

(3.) PETITIONER denied the above contentions. As a consultant and sub -broker in stocks and shares, he had also previously sold 100 equity shares of M/s Maharashtra Seamless on behalf of he Respondent and paid him the money. In the instant case the Respondent gave telephonic instructions to sell 50 more shares of the same company and the Petitioner presuming that these shares are also equity shares as in the previous case, communicated the prevailing rate of these shares at Rs. 224.40p per share. Subsequently, when the shares were quoted for sale and the business transaction was closed, the Petitioner came to know that the said shares are not equity shares but preferential shares which are not tradable and hence were termed as "bad delivery". These shares were, therefore, auctioned at the rate of Rs. 247.65 per share on 22.12.2004 as per Rules followed by National Stock Exchange (NSE) and an amount of Rs.1162.50p was debited in the account of the Petitioner. Petitioner informed the Respondent about this matter on the same date, and requested the Respondent to collect the said shares if he so desires after paying him Rs.1162.50p. According to the Petitioner, Respondent agreed to collect the shares but did not turn -up to collect them and instead filed the complaint. The District Forum after hearing both tie parties dismissed the complaint and directed that the Respondent could collect his shares from the Petitioner on payment of Rs.1162.50p. The operative part of the order of the District Forum is reproduced: