M/S.Dugar Housing Ltd. v. National Stock Exchange

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 05.03.2018

CORAM

THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN C.S.No.41 of 2000 M/s.Dugar Housing Limited, Represented by its Chairman, 'Dugar Towers', 123, Marshalls Road, Egmore, Chennai - 600 008.

[Amended as per order dated 22.01.2018 in Application No.433 of 2018] ... Plaintiff Vs 1.National Stock Exchange of India Ltd., Mahindra Towers, 'A' Wing, First Floor, RBC, Worli, Mumbai - 400 018.

2.National Stock Exchange of India Ltd., No.5, Buzullah Road, T.Nagar, Chennai - 600 017.

3.National Securities Clearing Corporation Ltd., Trade World, Senapati Bapat Marg, Lower Parel, Mumbai - 400 136.

4.Securities & Exchange Board of India 'Mittal Court', 'B' Wing, 224, Nariman Point, Mumbai - 400 021.

5.Oriental Insurance Co. Ltd., 'Oriental House'

7th Floor, No.7, Jamshedji Tata Road, Mumbai - 400 020.

... Defendants Plaint filed under Order IV Rule 1 of Original Side Rules read with Order VII Rule 1 C.P.C. praying to pass a judgment and decree: (a) for a declaration that Circular No.71, 96 and 106 put forward by the defendants 1 to 3 as a ground for wrongfully withholding the interest free deposit amount of Rs.61 laksh of the plaintiff, morefully described in Schedule 'A' hereunder by not adjusting the dues claimed by the third defendant out of the Rs.61 lakhs deposit ('A' Schedule) in September 1997 itself and, at the same time, charging interest at 4.5% per month, i.e., 54% per annum for the amounts claimed by the third defendant, are all illegal and not enforceable in law and not valid and binding upon the plaintiff;

(b) for a declaration that the unilateral adjustments made by the defendants 1 to 3 out of the plaintiff's money of Rs.61 lakhs, morefully described in schedule 'A' hereunder calling it as interest at 54% per annum for the claim made by the third defendant, is illegal and not valid and binding upon the plaintiff.

(c) directing the defendants to pay the plaintiff a sum of Rs.61,69,000/- together with subsequent interest at 24% per annum from the date of plaint till date of realization; (d) for a mandatory injunction directing the defendants

to return the security scrips more fully described in the schedule 'B' hereunder or pay their value of Rs.3 lakhs to the plaintiff within a time to be fixed by this Hon'ble Court together with subsequent interest at 24% per annum from the date of plaint till date of realization;

(e) directing the defendants to pay the cost of the suit. For Plaintiff : Mr.C.Jagadish For defendants : Mr.Thiruvenkadasamy for D1 to D3 Mr.M.S.Murali for R & P Partners for D4 Mr.R.Sivakumar for D5

J U D G M E N T

The matter was sent to mediation and the matter has been compromised before the Mediation center. The parties have filed a Joint Memo of Compromise praying for a decree in terms of compromise.

2. In view of the compromise arrived at between the parties, the suit is decreed in terms of the compromise. The compromise memo also provides that the parties shall bear their own costs. 05.03.2018 dsa Index : No Internet : Yes Non-speaking Order List of the witnesses examined on the side of the plaintiff :

PW1 - Ramesh Dugar List of Exhibits marked on the side of the plaintiff: Ex.P1 Certified true copy of extract of minutes of the meeting of the Board of Directors.

06.01.2012 Ex.P2 Xerox copy of letter sent by the 4th defendant 12.01.1996 Ex.P3 Xerox copy of fee and deposit structure (Annexure B) -- Ex.P4 07.03.1996

Ex.P5 Xerox copy of the bank guarantee 02.05.1997 Ex.P6 Xerox copy of letter sent by the plaintiff to the 1st defendant.

24.01.1998 Ex.P7 Xerox copy of letter sent by the plaintiff to the 4th defendant.

24.01.1998 Ex.P8 Xerox copy of letter sent by the 3rd defendant to the plaintiff.

10.03.1998 Ex.P9 11.03.1998 Ex.P10 12.03.1998 Ex.P11 20.03.1998 Ex.P12 Xerox copy of letter sent by the plaintiff to the 1st defendant.

08.05.1998 Ex.P13 Xerox copy of letter sent by the 3rd defendant to the plaintiff.

09.05.1998 Ex.P14 Xerox copy of letter sent by the plaintiff to the 3rd defendant.

15.05.1998 Ex.P15 Xerox copy of letter sent by the plaintiff to the 3rd defendant.

22.05.1998 Ex.P16 Xerox copy of letter sent by the 3rd defendant to the plaintiff.

25.05.1998 Ex.P17 Xerox copy of debit note sent by 3rd defendant to the plaintiff.

19.06.1998 Ex.P18 Xerox copy of letter sent by the 3rd defendant to the plaintiff.

13.08.1998 Ex.P19 Xerox copy of letter sent by the plaintiff to the 3rd defendant.

18.08.1998 Ex.P20 Xerox copy of letter sent by the plaintiff to the 1st defendant.

02.09.1998

Ex.P21 Membership department circular No.71 of the 1st defendant.

14.08.1997 Ex.P22 Circular No.86 of the 1st defendant.

24.11.1997 Ex.P23 Circular No.87 of the 1st defendant.

24.11.1997 Ex.P24 Circular No.96 of the 1st defendant.

24.03.1998 Ex.P25 Circular No.106 of the 1st defendant.

24.07.1998 Ex.P26 Xerox copy of the order in W.P.No.14218/1998, High Court, Madras.

24.08.1999 Ex.P27 Xerox copy of legal notice issued by the plaintiff's counsel to the defendants 1 and 3. 07.09.1999 Ex.P28 09.12.1999 Ex.P29 Xerox copy of the notice published in the New Indian Express, Chennai.

10.12.1999 Ex.P30 Xerox copy of fresh certificate of incorporation consequent on change of name.

31.12.1996 List of the witnesses examined on the side of the defendants :

DW1 - Sunitha Anand List of Exhibits marked on the side of the defendants: Ex.D1 Xerox copy of the letter sent by the 5th defendant to the plaintiff.

04.07.2003 Ex.D2 Xerox copy of the letter sent by the plaintiff to the 5th defendant.

20.08.2003 Ex.D3 Authorisation letter given by the 1st 30.07.2012

defendant.

Ex.D4 Authorisation letter given by the 3rd defendant.

30.07.2012 Ex.D5 Trading membership undertaking.

24.11.1995 Ex.D6 Bye laws of the 1st defendant.

June 2000 Ex.D7 Rules of the 1st defendant.

December Ex.D8 Bye laws of the 3rd defendant.

May 1999 Ex.D9 Bye laws of the 1st defendant.

-- Ex.D10 Rules of the 1st defendant.

-- Ex.D11 Bye laws of the 3rd defendant.

-- Ex.D12 Circular No.71 of the 1st defendant.

14.08.1997 Ex.D13 Circular No.96 of the 1st defendant.

24.03.1998 Ex.D14 Circular No.106 of the 1st defendant.

24.07.1998 Ex.D15 Xerox copy of letter sent by 4th defendant to the 1st defendant.

25.09.1998 Ex.D16 (series) Letters sent by the plaintiff to the 1st defendant. (2 Nos.) 01.09.1998 & 24.01.1998 Ex.D17 20.03.1998 Ex.D18 (series) Xerox copy of the letter sent by the plaintiff to the 3rd defendant.

24.01.1998 Ex.D19 12.03.1998 Ex.D20 (series) Circular Nos.135 and 64.

19.05.1997 Ex.D21 Affidavit -subsequent events.

29.03.2012 Ex.D22 Xerox copy of letter sent by the 4th defendant 23.11.2005

Ex.D23 15.03.2005 Ex.D24 Order issued by the 4th defendant.

29.10.2009 Ex.D25 03.11.2009 Ex.D26 Courier receipt.

05.11.2009 Ex.D27 20.11.2009 Ex.D28 Copy of the email from the plaintiff's office. -- Ex.D29 Circular No.78.

30.09.1997 Ex.D30 Circular No.86 and 87.

24.11.1997 Ex.D31 Circular No.123.

21.01.1999 Ex.D32 Xerox copy of letter sent by 4th defendant to the plaintiff.

07.02.2011 05.03.2018 dsa

R.SUBRAMANIAN, J.

dsa C.S.No.41 of 2000 05.03.2018