Since shares are “traded”, consumer fora treat this matter as a commercial dispute, which is not maintainable. In a recent judgment, the national commission has differentiated between trading in shares and purchase of shares as an investment, and ruled that an applicant for shares is a consumer.
In its order dated April 1, 2014 delivered by Justice V B Gupta for the bench, along with Suresh Chandra, the national commission differentiated between trading in shares and allotment of shares. An applicant who applies for shares would stand on a different footing from one who trades in shares for commercial purpose.
Since Apritha has applied for allotment, she would be a consumer and was entitled to approach the consumer fora.
The national commission held that deficiency on the part of the company was evident from the board resolution and the agreement. Accordingly, the revision petition was dismissed and the order of the state commission in Arpitha’s favour was confirmed. It also imposed a fine of Rs 10,000 on the company to be paid to legal aid.
Conclusion: Those who trade in shares are not consumers, but those who buy shares as an investment are consumers.
Courtesy : Jehangir Gai
For more details, Click Here