Pheroze Rustom Mody vs National Stock Exchange Of India Limited

Tarun Agarwala, Presiding Officer

There is a delay in the filing of the appeal. In view of the order of Supreme Court dated March 23, 2020 and April 27, 2021 in Suo Moto Writ

Petition (Civil) No. 3 of 2020, the delay in the filing of the appeal is condoned. The application is allowed.

We have heard the learned counsel for the parties. It seems that the appellant had opened a trading account with Kaynet Finance Limited. This

broker apparently pledged the shares of the appellant without its consent. This broker was first suspended and then expelled by the stock exchange. It

seems that the appellant entered into a private agreement with the broker wherein the broker agreed to pay a sum of Rs. 85 lakh in settlement of the

claim between the parties. Since the same was dishonored the appellant filed a claim application which application was rejected by the impugned

communication dated February 20, 2021.

Having heard the learned counsel for the parties and having perused the impugned order we find that the basis of rejection of the claim application

is very cryptic and no reasons have been given. We accordingly set aside the impugned order dated February 20, 2021 and direct the respondent to

pass a fresh order giving reasons. The appeal is allowed.

The present matter was heard through video conference due to Covid-19 pandemic. At this stage it is not possible to sign a copy of this order nor a

certified copy of this order could be issued by the registry. In these circumstances, this order will be digitally signed by the Private Secretary on behalf

of the bench and all concerned parties are directed to act on the digitally signed copy of this order. Parties will act on production of a digitally signed

copy sent by fax and/or email.