SHARAD P. JAGTIANI Vs. EDELWEISS SECURITIES LTD.

JUDGEMENT

(1.) Sharad P.Jagtiani filed a suit on the original side of this Court praying for a decree in sum of Rs. 46,71,768.29 (Rupees Forty Six Lacs Seventy One Thousand Seven Hundred Sixty Eight and Paisa Twenty Nine only) against M/s. Edelweiss Securities Ltd. on plea that representatives of Edelweiss met him with a request to open a brokerage account with the firm and to trade in the financial market through Edelweiss. He was assured 40% profit on trading. He opened a trading account and transferred Rs. 48,00,000/- (Rupees Forty Eight Lacs only) in the account. He pleaded that he did not invest the money under any portfolio management scheme. Account No.NDS00S078 was opened in his name. He signed certain blank forms on the assurance that once filled up copies thereof would be sent to him. He pleaded that Edelweiss was bound by the rules of the National Stock Exchange requiring trading members to ensure that confirmed order instructions were obtained from the members. That he placed 121 trading orders with Edelweiss. Suddenly officers of Edelweiss became non-communicative. With much difficulty he obtained a statement of account showing that he had incurred a loss of Rs. 41,00,000/- (Rupees Forty One Lacs only). He raised a grievance that without his instructions 65 transactions were effected by Edelweiss without any confirmed order or instruction from him. He pleaded that out of 186 transactions shown to his account he did not dispute 121 but disputed 65. He pleaded that he was entitled to the sum claimed if 65 transactions debited to his account were removed.

(2.) The learned Joint Registrar (Judicial) before whom the suit was listed issued summons to Edelweiss returnable for August 26, 2011 on which date it was found that on account of defective process fee filed the summons could not be issued. On filing of process fee fresh summons returnable for February 24, 2012 were issued. Before the date fixed a written statement was filed which was signed and verified on December 15, 2011.

(3.) In the written statement filed apart from refuting the pleadings and affirming that all transactions were carried out under the instructions of Sharad P.Jagtiani it was pleaded in the third preliminary objection as under:-