TMI Blog2015 (8) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... r The Appellant : Mrs. Dina Parikh For The Respondent : Mr. Shachindra Dube, Authorized Representative with Mr. Sageer Khan, Mr. Kumar Desai, Advocate with Mr. Pratham V. Masurekar, Advocate, Mr. Rashid Boatwalla, Advocate with Ms. Shaznin Unwala Per: Justice J.P. Devadhar (Oral) Misc. Application No. 63 of 2014 1. By this Miscellaneous Application applicant/appellant seeks condonation of approximately1000 days delay in filing the appeal. 2. For the reasons set out in the Miscellaneous Application, delay is condoned. Accordingly, Miscellaneous Application is allowed with no order as to costs. Appeal No. 122 of 2014 1. Appellant herein basically seeks following two reliefs: i) Direction to the respondent to pay interest at the rate of 12% on ₹ 66,924/- from March 1, 2005 till final disposal of appeal. ii) Direct the respondent to pay balance amount of ₹ 33,076/- alongwith interest at the rate of 12% per annum from April 1, 2005 till final payment. 2. Facts relevant for the purpose of the present appeal are as follows: (a) Respondent No. 1 is a holding company of ISE Securities and Services Limited. ISE Securities and Services Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cancelled. Admittedly on receiving approval for cancellation of registration of appellant as sub broker by competent authority on September 20, 2010, ISS addressed a letter to the appellant on October 11, 2010 specifically stating therein that the cancellation process would be subject to clearing annual fees of respondent amounting to ₹ 30,826/-. h) Thereupon, appellant on October 29, 2010 and on December 2, 2010 submitted various documents for cancellation of membership registration with the respondent, but failed to make payment towards arrears of annual subscription fees. i) Notwithstanding, non-payment of dues for the Financial Year 2009-2010 and 2010-2011, respondent forwarded cancellation application of the appellant to SEBI seeking their approval. By a letter dated July 20, 2011, SEBI approved cancellation of trading membership of the appellant with effect from June 29, 2011. j) Accordingly, the respondent by its letter dated August 2, 2011 intimated appellant about the cancellation of the membership of the appellant and forwarded a cheque for ₹ 66,924/- after deducting ₹ 33,076/- from the Base Minimum Capital deposit amount of ₹ 1 lac. Amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of obtaining trading membership of the respondent and was liable to continue to pay annual membership fee payable thereon. Admittedly, appellant has paid yearly membership subscription fees from 2005 till 2009. 7. It is only when the yearly membership subscription fee was enhanced by respondent with effect from April 1, 2009, appellant applied for transfer of membership on February 9, 2009 so that liability to pay enhanced yearly membership subscription fees with effect from April 1, 2009 is that of the transferee-broker. SEBI by its communication dated June 4, 2009 granted approval for sale/transfer of membership of appellant subject to the condition, inter alia, that the security deposit of the transferor-broker (appellant) shall not be released until the registration is granted to the transferee-broker. 8. Admittedly, appellant could not effect transfer of membership and consequently sought cancellation of membership by submitting requisite documents on October 29, 2010 and December 2, 2010. It is relevant to note that appellant was repeatedly informed prior to and subsequent to making application for cancellation of membership, that payment of annual subscription fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication on October 29, 2010. Having failed in her venture to transfer the membership, appellant cannot blame the respondent for charging enhanced membership fees from April 1, 2009 till the date of making application for cancellation of membership on October 29, 2010. 14. Argument of appellant that officers of respondent have not guided her properly is unacceptable, because, a member trading on the exchange cannot feign ignorance in complying with the obligation to pay annual membership fees so long as the membership exists and also obligation to make requisite application for cancellation of membership as and when deemed fit. Therefore, in the facts of present case, where appellant even after deactivation of her trading terminal in April 2005 chose to continue her membership from 2005 till 2009 by paying yearly membership fees from time to time and chose to seek transfer the membership prior to enhancement of membership fees effective from April 1, 2009, is not justified in blaming the respondent in charging annual membership fees for the period from April 1, 2009 because, admittedly transfer deal did not go through and application of cancellation of membership was made on Oc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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