RAM MOHTA Vs. CALCUTTA STOCK EXCHANGE ASSOCIATION LTD

JUDGEMENT

(1.) A former member has sought winding up of the stock exchange company for its alleged inability to refund his security deposit.

(2.) The principal claim is for Rs. 10,50,000/-. According to the petitioner Rs. 3 lakh had been furnished by way of fixed deposit, Rs.2.5 lakh had been deposited in the settlement guarantee fund and Rs. 5 lakh had been provided as interest free security amount. The petitioner has relied on the stock exchange's written confirmation that the petitioner had ceased to be a member with effect from June 9, 2000. Upon cessation of membership, the petitioner claims, the entirety of the security deposit, in various forms, ought to have been returned and the failure on the part of the stock exchange to refund the deposit amounts to inability to pay.

(3.) The petitioner has also relied on a letter of August 28, 2001 issued by the stock exchange in response to the petitioner's demand for refund of the deposit, to substantiate his claim that a sum of Rs. 2.5 lakh had been kept deposited towards the guarantee fund and the remaining amount was on account of base minimum capital. A further letter of the stock exchange of February 25, 2002 has been placed which reads as follows: