National Consumer Disputes Redressal Commission (NCDRC): NCDRC has held that though trading in shares is a commercial transaction outside the purview of Consumer Protection Act but those who buy shares as an investment are covered under the definition of “consumer”. The court was hearing a revision petition filed by Venve Light Metal Ltd. challenging the order of State Commission which directed the Firm to refund the amount of unallotted shares to the complainant with interest. Earlier, the complainant had paid an amount of Rs 1 lakh by cheque and Rs 1.40 lakhs in installments through cash payment for allotment of shares of Venve Light Metal Ltd. but neither were the shares issued nor was the money refunded to the complainant. The complainant filed a complaint before District Forum claiming Rs 2.40 lakhs along with interest but her complaint was dismissed. The Firm had contended before Forum that it had already allotted 10,000 shares of Rs.10 each for the amount of Rs1 lakh and there was no record of the remaining Rs 1.40 lakhs. Being aggrieved, complainant filed an appeal before the State Commission, which while observing that the company failed to produce any document to show that shares had be received by the complainant, set aside the order of the District Forum and allowed the appeal, with directions to the petitioner to pay Rs.2,40,000/-to the complainant with interest @ 9% on Rs.1,00,000/-from 31.1.2000 and on Rs.1,40,000/-from 31.1.2001, together with cost of Rs.2,000/-. In revision, after perusing the Board Resolution of the Firm, NCDRC observed that it is clear that the Firm had received the entire consideration from the Complainant and deficiency on the part of the Firm is writ large. While also rejecting the plea taken by the Firm for the first time in the revision that complainant is not a consumer since she is trading in shares, NCDRC upheld the order of the State Commission and imposed costs of Rs 10,000/ on the Firm. (Venve Light Metal Ltd. v. Arpitha Reddy, Revision Petition No. 3941 of 2007, decided on August 1, 2014)
