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TMI Blog2010 (3) TMI 677X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions placed thereunder cannot be set at naught and rendered meaningless by a court exercising its jurisdiction irregularly and granting a decree for sale of the card of a member in an exchange. Such a direction issued in the decree passed in a suit is inexecutable. The order passed by the learned Sub-Judge directing for sale of the membership card of the first defendant by the stock exchange is set aside. The decree holder is free to realise the decree debt from the property of the judgment debtors Nos. 1 and 2 in accordance with law and also against their person, if so provided under the decree. Revision is allowed. - C.R. P. NO. 59 OF 2002 - - - Dated:- 26-3-2010 - S. S. SATHEESACHANDRAN, J. Koshy George, George Zachariah Eru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o realise the decree debt by taking steps for sale of the membership card of the first defendant in the exchange. The decree also contained a direction to the third defendant exchange to sell the membership card of the first defendant and, after realising its dues, payment of the balance amount to the plaintiff. In execution of the decree, the decree holder bank applied for sale of the membership card of the first defendant by the exchange. The revision petitioner/Cochin Stock Exchange filed objections to the execution contending that the membership card is not a private property of the first defendant and it cannot be attached and sold in execution. It was further contended that the Cochin Stock Exchange cannot be compelled to sell the mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken notion that membership card of the first defendant in the exchange was his property which can be sold to realise the decree debt due to the bank. The ingenious attempt of the bank of filing a suit impleading the Cochin Stock Exchange as the third defendant and seeking a decree against that defendant when it had no privity of contract with plaintiff bank or any role in the loan transaction of defendants Nos. 1 and 2, with no cause of action against the exchange, was not taken note of by the court, and despite the specific challenges raised by the exchange, a decree had been passed with some directions as indicated above. Merely because a decree had been passed with such directions, it does not follow it is clothed with inviolable legal s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his right vests in the exchange immediately and it belongs absolutely to the exchange free of all rights, claims or interests. It is only the Defaulters' Committee as per the Rules and Regulations which can proceed with distribution rights on a pro rata basis among the creditor constituents of the defaulter member normally as per the Rules and Regulations of a stock exchange. When such rules and bye-laws of the exchange regulate how the sale proceeds in an auction of the membership card in an exchange of a defaulter are to be dealt with and where the membership card issued is only a personal privilege of the member, which on the declaration that he is a defaulter vesting with the stock exchange absolutely, no doubt, the direction issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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