9911796707
TMI Blog1999 (4) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... (the Exchange) under the Securities Contracts (Regulation) Act, 1956. Plaintiff company, as a member of the exchange, are governed by the bye laws of the Exchange (Bye-Laws). Plaintiff Company transact their business of buying and selling of shares from the cabin provided by the Exchange in their administrative office located at Indra Gandhi Institute I.P. Estate New Delhi The Exchange has also provided a computer terminal to plaintiff to facilitate the buying and selling of the shares. It is also undisputed that a surveillance machine is installed at the office of the Exchange, which handles price sensitive information regarding members' position and the trading that takes place. In the last week of December 1998 some data base errors were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned penalty of suspension was inflicted in breach of the principles of aitdi alterant partem inasmuch as no pre-decisional hearing was given to plaintiff before inflicting the impugned penalty. 4 . Defendant resisted the suit contending that on investigation by the WIPRO, it was found that plaintiff had made unauthorised access to price sensitive information from the Surveillance Terminal of the Exchange. Thereupon a show cause notice dated 6-1-1999 was issued to the plaintiff. On the plaintiff's representation, the order dated 4-3-1999 was kept in tabeyance. Plaintiff sent another representation dated 19-3-1999 to the defendant against the order dated 4-3-1999. It is alleged that in their meeting dated 19-4-1999, board of direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to assist the individual to vindicate his just rights. They are not incantations to be invoked nor rites to be performed on all and sundry occasions. In Rash Lai Yadav v. State of Bihar [199'4] 5 SCC267, it was held that where the statute is silent and a contrary intention cannot be implied the requirement of the applicability of the rule of natural justice is read into it to ensure fairness and to ■ protect the action from the charge of arbitrariness. Natural justice has thus secured a foothold to supplement enacted law by operating as an implied mandatory requirement thereby protecting it from the vice of ' arbitrariness. Although there is iio express provision in the bye-laws laying down the procedure to be adopted for inflic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed the information for their benefit or otherwise. You may note that we are not involved in any speculative or delivery based transaction of significant value on the DSE. The undersigned had met and discussed the matter with Mr. S.S. Sodhi, Executive Director on January 12, 1999 and as discussed Mr. Dinesh Srivastava has been suspended and debarred from going to the DSE office. Further action against Mr. Dinesh Srivastava shall be taken as mutually decided. Kindly note that with effect from today following are the authorised personnel on the DSE l. Mr. SandeepDhall 2. Mr. Rajeev Arora. We deeply regret the incident and look forward in assisting the Stock Exchange in creating systems so that such incidents do not occur in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he proposed penalty of suspension. In the said representation, plaintiff again did not contest the accusation. It appears that from the very beginning, plaintiff adopted an attitude of reconciliation and they even offered to pay a reasonable penalty for the alleged misdemeanour. In this view of the matter, the Board was not under obligation to give a personal hearing to plaintiff as they (plaintiff) could not say beyond what was stated in their two representations. In such a situation, grant of a personal hearing to plaintiff would have been a useless formality because there was nothing that plaintiff could have said against the action taken. The personal hearing, could not have affected the decision. However, defendant has placed on record ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
