THE CALCUTTA STOCK EXCHANGE ASSOCIATION LTD. Vs. STATE

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.) IT is submitted on behalf of the petitioner that though a much larger demand had been made by the Securities and Exchange Board of India (SEBI) on account of turnover tax, the claim was later scaled down to Rs. 33,720/ -. In the r,eply the petitioner has annexed on the written request by SEBI for such reduced amount and has relied on a photostat copy of the cheque issued by the petitioner in favour of SEBI for such amount. It is not disputed by the stock exchange that the sum of Rs. 33,720/ - has been paid by the petitioner to SEBI.