SANJEEV PRAKASH SHARMA,J. - (1.) The petitioner-Company is associated in business of trading investment in shares and stocks and is having trade accounts with one M/s. Bhargava Lodha Stock Brokers Private Limited and the stock broker as named above has a common client code No.L008 for trading on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) respectively. While M/s. B.Lodha Securities Limited is Member of BSE, Ms. Bhargava Lodha Stock Brokers is registered with NSE. The petitioner executed Member Client Agreement with the respected Companies as stock brokers having separate trading accounts. The petitioner was enjoying the facilities and running trading account whereby respective debt balances in the said running trading account for NSE as well as BSE, were allowed to be carried out as and when necessary funds were made available with the petitioner. The said funds were duly and separately credited in the said trading accounts. This facilities were available as there were various collateral securities lying with the respondent-Company and the respondent was not authorised to discharge any debit balance by selling the said collateral securities without the consent and/or authorization of the petitioner.
(2.) Case of the petitioner-Company is that on 16.12.2014, the respondent Company and the said stock broker obtained the unauthorized trade in their aforesaid account despite of petitioner's written statement dated 18.12.2014 not to sell the scripts laying in the petitioner's said running trading accounts. However, the Company has failed to consider petitioner's instruction and continued to sell the scripts lying in petitioner's accounts.
(3.) It is further stated that without admitting and accepting the unauthorized trade in the petitioner's accounts, the petitioner on perusal of the ledger account submitted by the Company on 12.01.2015, became aware that huge trading in the volume of more than 1,00,00,000 (one crore) was done by the Company without knowledge and consent of the petitioner and as a result thereof, on 22.12.2014 there was Debit balance of Rs.14,17,888/- in the petitioner's said trading account held with the Company for BSE.;