Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 1960 (8) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1960 (8) TMI 95 - SC - Indian LawsPetition under article 32 of the Constitution for the issue of a writ of mandamus or a writ in the nature of mandamus or any other appropriate direction, order or writ to direct the respondent, the Union of India, to withdraw or cancel the notification dated August 31, 1957, recognising " the Stock Exchange, Bombay" under section 4 of the Securities Contracts (Regulation) Act, 1956 (XLII of 1956) Held that:- The Act, the validity of which he has not chosen to question, enables the State to give or refuse recognition to any stock exchange and it has chosen to give recognition to the Stock Exchange, Bombay, subject to the conditions prescribed. The restrictions in our view, are not unreasonable, having regard to the importance of the business of a stock exchange in the country's national economy and having regard to the magnitude of the mischief sought to be remedied in the interest of the general public. At another place we have already dealt with the necessity for stringent rules governing this type of business. For the reasons mentioned we reject the first contention that that under rule 20 a candidate for admission falls under two categories, namely, (1) a candidate who must obtain a nomination in the manner provided in the rules, i.e., rule 11(a) and (b ); and (2) a candidate applying for a membership vesting in the exchange; and, therefore, these two categories exhaust the candidates for admission. The record discloses that the Central Government in recognising the stock exchange sought to avoid the consequential hardship on the members of the rival stock exchange and therefore imposed the said condition on the Stock Exchange, Bombay, as a condition for its recognition. The condition germane to the recognition of the stock exchange and is therefore, a condition within the meaning of " any other conditions " in clause (b) of sub-section (1) of section 4 of the Act. The Indian Stock Exchange Limited became moribund in a few ears and to revive its activities it allowed the members of the East India Chamber of Commerce, by relaxing its entrance fee and security deposit requirements in 1950-51 and created a new class of associate members, which facilitated the enrolment of hundreds of associated members on payment of a nominal entrance fee of ₹ 100. The Government on a consideration of the necessary data and presumably having regard to the record of the activities of the various members fixed the activities in the crucial year 1956-57 as the standard of activity for membership. The burden which lie upon the petitioner who impeached the validity of the classification to show that it violates the guarantee of equal 'protection has been discharged. On the material placed before us we cannot say that the period fixed by take Government as the standard for ascertaining the active membership is arbitrary or unreasonable. We must make it clear that this finding must be confined only to the validity of the impugned notification dated August 31,1956. Appeal dismissed.
|