- (1.) This application under Article 227 of the Constitution of India contains a challenge to a judgment dated 29th September, 2011 delivered by the Debts Recovery Appellate Tribunal (DRAT) whereby, the appeals of the opposite parties were held to have succeeded and was allowed. The Appellate Tribunal found the opposite party no.1 was entitled to realise a sum of Rs.26,86,24,937.68 from the petitioner as well as the opposite party no.2.
(2.) The relevant facts are that Stock Holding Corporation of India Limited the petitioner, hereinafter referred to as SHCIL, carries on business, inter alia, as a depository participant. SHCIL acts as an agent of its clients for the purpose of collection of sale proceeds of shares sold through the Calcutta Stock Exchange under a scheme framed by it. SHCIL has its own procedure for verification of the transactions entered into by its clients after which it issues post dated cheques to the extent of the expected proceeds of the sales, in favour of its clients. Such cheques are to be presented for payment on the next day of pay out of rolling settlement of the Calcutta Stock Exchange in respect of the transactions.
(3.) The opposite party no.2 as a client of SHCIL approached it in respect of sale of 7,20,000 shares held by him of a company known as DSQ Industries Limited, to be sold through the Calcutta Stock Exchange at the price of Rs.340/- per share through stock broker Biyani Securities Limited. The said sale was made through the Calcutta Stock Exchange on 2nd March, 2001 and the proceeds were to be paid out in the Rolling Market Settlement no.2001519 of the aggregate sum of approximately Rs.24.45 crores. SHCIL on 2nd March, 2001, after deducting its brokerage and service charges, issued three post dated crossed and account payee cheques all dated 14th March, 2001 for the aggregate sum of approximately Rs.24.40 crores drawn in favour of the opposite party no.2 on United Bank of India, Calcutta Stock Exchange Branch. The opposite party no.2 got those cheques discounted by IndusInd Bank Limited, the opposite party no.1. The said cheques being dishonoured on presentation, the opposite party no.1 filed Original Application before the Debts Recovery Tribunal seeking to recover, inter alia, the aggregate value of the said cheques from SHCIL and the opposite party no.2. The Tribunal by its judgment and order dated 15th October, 2009 granted certificate for recovery as against the opposite party no.2 only. The opposite party no.1 appealed before the Appellate Tribunal, which returned the judgment and order impugned herein.;