D D CHANDAK Vs. VINOD CHOUDHARY

JUDGEMENT

(1.) Shri D. D. Chandak and his wife Ms. Rama Chandak (first and second applicants hereafter) have filed this applications under Sec.12b of the MRTP Act, 1969, alleging that Shri Vinod Choudhary, Sole Proprietor, Concord Investment (respondent hereafter) has indulged in certain unfair and restrictive trade practices visiting them with loss and damage.

(2.) The respondent claiming to be an investment consultant engaged in the sale/ purchase of stocks and shares has been representing that he has the competence in share marketing. The applicants induced by such a representation agreed to engage the services of the respondent to sell 100 shares owned by them in Industrial Credit and Investment Corporation of India Limited (ICICI for short ). The respondent confirmed on 3rd June, 1993 that the sale price of each share would be Rs.1,210/-. However on 5th June, 1993 he informed the second applicant that he had sold the shares at the rate of Rs.1,069.91 per share and promised to remit an amount of Rs.1,06,991/- being the sale proceeds in respect of the said 100 shares in ICICI. After repeated reminders, on 15th September, 1993 the respondent paid an amount of Rs.25,000/- as part payment of the sale proceeds stating that there was some problem with the broker to whom he had sold the shares but promising to pay the balance amount "soon".

(3.) The applicants came to know that the said 100 shares have been sold and that the sale consideration has been exchanged between the transferee and the person who sold the shares. When this was brought to the notice of the respondent, he issued two crossed cheques for Rs.10,000/- each in January, 1994 but they were dishonoured by the Bank. The respondent never bothered to pay the remaining amount due to the applicants.