1979 (2) TMI 175 - SUPREME COURT

Whether after the imposition of the ban on all forward trading in shares with effect from the close of June 27, 1969, the outstanding contracts that had remained to be performed as on that date were permitted to be closed or liquidated under the proviso in accordance with the rules, bye-laws and regulations of the respondent or not?

Held that:- Appeal dismissed. The true and proper construction of the notification in question it will be clear that the directions issued by the respondent to all its members including appellant No. 2 on June 28, 1969, in regard to their outstanding transactions as at the close of June 27, 1969, were proper and legal and the appellants' stand was clearly erroneous. It cannot be disputed that ample opportunity was given to appellant No. 2 to comply with the directions, but the appellant persisted in his erroneous contention and failed to comply with those directions with the result that the respondent had no alternative but to declare him a defaulter. In our view, the directions dated June 28, 1969, as well as the two resolutions passed by the respondent on July 2, and July 3, 1969, were proper and justified and the appellants' case on merits was rightly rejected by the High Court.