Stock exchange readmission can be refused where breach of rules, loss of control, and missing accounts show non-compliance.

Readmission to stock exchange membership was properly refused where the applicant had effectively abdicated control of his membership and business, allowed another entity to conduct the business, exposed the office to substantial liabilities, and failed to produce original books of account, receipts and vouchers when required. Those facts showed breach of the Exchange's rules, bye-laws and regulations and non-compliance with the conditions governing readmission. The Committee's decision was therefore justified, and no illegality was found in rejecting the application.

---

---

Issues: Whether the Bombay Stock Exchange was justified in rejecting the petitioner's application for readmission as a member.

Analysis: The report of the Defaulter's Committee showed that the petitioner had abdicated control over his membership and business, effectively allowed another entity to conduct the business, exposed the office to large liabilities, and failed to produce the original books of account, receipts, and vouchers when called upon. These facts established a breach of the Exchange's rules, bye-laws and regulations, and amounted to non-compliance with the requirements governing readmission.

Conclusion: The rejection of readmission was justified and no illegality was shown in the Committee's decision.

---