JUDGMENT

S.B. Sinha, J.-Interpretation of Securities Contract (Regulation) Act, 1956 (hereinafter referred to as the Act ) vis-a-vis rules, bye-laws and the regulations framed thereunder as regard the right of a third party to realise his dues out of the corpus of the Defaulters Committee is the question involved in this appeal which arises out of a judgment and order dated 25th July, 1997 passed by the High Court of Judicature at Bombay in Appeal No. 17 of 1996.

The Background Fact :

2. The appellant herein is Bombay Stock Exchange (Exchange). It is recognized by the Central Government under the Rules, Bye-laws and Regulations framed in the year 1957 pursuant to or in furtherance of the provisions of the Act . The said rules, bye-laws and regulations are approved by the Central Government. Rights and obligations of the members of the Exchange as also the constituents/investors dealing with or through the members are governed by the Rules, Bye-laws and Regulations framed under the Act.

3. One C.S. Shah was a registered broker. He was a member of the Exchange. He carried on his business as a stock broker. He was entitled to a personal privilege under the Rules of trading as a broker