This is a discussion on JRG Securities within the Investment forums, part of the Financial Services category; K.Anand Kumar, No.220, VST Road, Lingarajapuram, Bangalore-84 …. Complainant. V/s 01. Mr.Giby Mathew JRG Securities Ltd., JRG House, Ashoka Road, ...
- 09-12-2009, 07:26 AM #1
No.220, VST Road,
01. Mr.Giby Mathew
JRG Securities Ltd.,
JRG House, Ashoka Road,
Kaloor, Kochi – 17
…. Opposite Parties
This complaint is filed claiming Rs.31,000/- towards the amount not credited to the account of the complainant and compensation of Rs.70,000/- from the Opposite Parties on the following grounds:-
The complainant is a client of JRG – a share and stock broking firm. He had bought two lots (20) mininifty Aug. futures on 25-06-2008 and one lot (20) on 27-06-2008. When he called on 06-08-2008 to close these positions, he was told that he has only one position (one lot) which he closed at 4620. He was told that because of debit problems (no money) it closed one lot (20) on 02-07-2008 at 3878 and one lot (20) on 08-07-2008 at 3861. He was sure that he had no debit. When he cross checked his account with Mr.Sanal of Koramangala Branch, he found that a cheque for Rs.20,000/- was encashed on 14-03-2008 by JRG, but the same was not put into his account. He requested Mr.Pramod to refund Rs.31,000/- being the loss incurred.
But he was told that they will not refund the amount. He sent a written complaint on 15-08-2008 to which he received a reply on 28-08-2008 that they will look into the matter and contact him at the earliest. But till date they have not contacted him. He made repeated telephone calls to the office at Kochi and Bangalore but got evasive response. Till now he was asking only Rs.31,000/- for the loss incurred, but now he wants compensation of Rs.70,000/- also. The amount of Rs.20,000/- encashed on 14-03-2008 was not put into his account till 12-08-2008 and the same would have been gobbled up if he did not cross check the account. Hence, the complaint.
2. In the version, the contention of the Opposite Parties is as under:-
The complainant has entered into a contract with M/s JRG Securities Ltd., a limited Company having its office at Ashoka Road, Kallor, Kochi, Kerala. The said Company is not impleaded as the Opposite Party.
The Opposite Parties against whom the complaint is filed are only the employees of M/s JRG Securities and there is no privity of contract between the complainant and the Opposite Parties and as such the complaint is liable to be dismissed. After going through all the terms and conditions of the individual Account Opening Form which includes the Member Client Agreement-NSE & BSE, Combined Risk Disclosure documents, the complainant become the client of the Company by submitting the duly filled in account opening Form and signed the Member client Agreement. The duly executed forms/agreements were submitted on 30-11-2007 along with the copies of Bank statements and other documents. On completion of all the formalities, he has been allotted with account No.CBL10HE13. The parties are bound by the terms and conditions of the member client agreement dated 30-11-2007. Only as per the oral instructions of the complainant, the trading are done and the gain of the Opposite Party is only nominal brokerage charged on the turn over.
According to the complainant he bought three positions and out of that, closed one lot at Rs.4620/-. The other contention that he sold another one lot on 002-07-2008 at Rs.3878/- and another lot on 08-07-2008 at Rs.3861/- due to shortage of funds in his account is false. The alleged amount of Rs.20,000/- stated to be not credited to the account of the complainant was not credited initially because of some communication problem, but the same was rectified and the amount was already credited and the profits and losses in the trading is also added to or deducted from the account and as such there is no deficiency in service on the part of the Opposite Parties. The complainant has taken the above accounting problem as a ground for fabricating a false story to the effect that the two positions which are sold as per the instructions of the complainant was not as per his instructions only for the reason that the price of two positions sold went up later. Under Caluse-16 of the Member Client Agreement the complainant has agreed to reconcile the accounts at the end of each quarter with reference to all the settlements where pay outs have been declared during the quarter.
The complainant was provided with all the statements of accounts and it has also been communicated by him by ‘e’ mail. It was also confirmed that the communications sent by JRG from time to time was deemed to have been received by the complainant and the same shall be presumed to be in order unless notice of non receipt is given within 24 hours. The demand of Rs.31,000/- is unsustainable as the complainant was informed about the correct position and he admitted the same. The Opposite Parties are not liable to pay Rs.31,000/- or Rs.70,000/- as claimed by the complainant. It is the duty of the complainant to verify the quarterly statement through ‘e’ mail and to inform the company if there is any discrepancy. The sum of Rs.20,000/- was credited to the account of the complainant on 11-08-2008. On these grounds, the Opposite Parties have prayed for dismissal of the complaint.
3. In support of the respective contentions, both parties have filed affidavits so also written arguments.
4. The points for consideration are:-
1. Whether the complainant has proved deficiency in service on the part of the Opposite Parties?
2. Whether the complainant entitled to the relief prayed for in the complaint?
5. Our findings are:-
Point No.1 : In the Affirmative
Point No.2 : As per final order,
for the following:-
6. The dispute between the parties is with regard to the non credit of Rs.20,000/- encashed on 14-03-2008 to the account of the complainant. Alleging non credit of the amount of this account, the complaint is filed on 06-11-2008. In the written statement, the Opposite Parties have contended that Rs.20,000/- has been credited to the account of the complainant on 11-08-2008. This fact that the amount was credited to the account on 11-08-2008 is suppressed in the complaint filed on 28-11-2008, and in the affidavit filed in lieu of evidence. Thus, the fact remains that though the Opposite Parties received Rs.20,000/- though cheque on 14-03-2008, the same was not credited to the account of the complainant till 11-08-2008 for about five months. This act of the Opposite Parties clearly amounts to deficiency in service. Due to not crediting of Rs.20,000/- to his account, the complainant has claimed Rs.31,000/- so also compensation of Rs.70,000/-. But he has not explained how he is entitled to Rs.31,000/- as against Rs.20,000/- and how he is entitled to claim compensation of Rs.70,000/- from the Opposite Parties on account of not crediting the amount to his account for about five months. In these circumstances, in our opinion, the grievance of the complainant will be resolved if the Opposite Parties are directed to pay interest at 10% Per Annum on Rs.20,000/- from 14-03-2008 to 11-08-2008. In the result, we pass the following:-
1. The Opposite Parties are directed to pay interest on Rs.20,000/- at 10% Per Annum from 14-03-2008 – the date of encashment till 11-08-2008 – the date of crediting the amount to the account of the complainant and shall also pay costs of Rs.1,000/-. Compliance of this order shall be made within 08 weeks from the date of communication.
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