( 1 ) OVER The Counter Exchange of india (hereinafter referred to as the otcef ). New Delhi a company incorporated under the Companies Act, 1956 is a recognized Stock Exchange within the meaning of Section 4 of the security Contracts (Regulation) Act. It has been promoted by premier government financial institutions like unit Trust of India, Industrial development Bank of India, Life insurance Corporation of India and others. The OTCEI through advertisement invited applications for selection of dealers with stipulation that the applicant shall meet the requirement as laid down in clause (8)of the Securities Contracts (Regulation)Rules, 1957. It was further stated that the applicant should be required to pay application fee of rupees one lakh adjustable against one time non-refundable admission fee of rupee six lakhs for the successful applicant. In case of an unsuccessful applicant, application fee would be refunded to him after deduction of rupees five thousand towards processing fee etc. Accordingly respondent no. 2 applied for the dealership and paid application fee of rupees one lac and appeared for computer based examination and on the basis of his performance i