VINAY BUBNA Vs. STOCK EXCHANGE MUMBAI

JUDGEMENT

(1.) Special leave granted.

(2.) The appellant in this appeal had dealings in sale and purchase of shares with one Yogesh Mehta - respondent No. 3 (hereinafter referred to as 'the share broker') who was a member of Bombay Stock Exchange until he was declared a defaulter by the said Exchange.

(3.) According to the appellant as on 10/05/1995 a sum of Rs. 21,81,635.50 p. was due and payable by the share broker but the payment was not made. Thereupon the appellant filed an arbitration petition against the said share broker before the Bombay High Court. In the said proceedings an application was filed for appointing a Court receiver. The Court did not grant to the appellant any relief in respect of the membership card of the share broker whereupon an appeal was filed and it was contended that a Court receiver should be appointed in respect of the said membership card. This appeal was disposed of after a statement on behalf of the Stock Exchange was recorded to the effect that it "shall not apply any amount received by it as consideration on nomination of the membership to any person falling in the same category for the purpose of priority as the appellant under R. 16 of the Stock Exchange Rules till the award of the arbitration was received". It may here be stated ated that in view of the default having been committed by the share broker he was, on 10/12/1996, declared defaulter by the Stock Exchange and thereafter he ceased to be it's member.