Maintainability of a Section 7 insolvency petition against a financial service provider denied; appeal dismissed for non maintainability and complex d...
Provisional attachment under Prevention of Money Laundering Act requires exhaustion of statutory remedies; impugned order set aside, appeal to tribuna...
Restoration of property under Prevention of Money Laundering Act after attachment dispute rendered academic; possession directed to successful resolut...
Absence of pre-trade authorisation is not conclusive of unauthorised trading and, by itself, may only trigger regulatory consequences; a client who does not object within a reasonable time cannot ordinarily disown the trades. Here, however, the HC upheld the arbitral award because the arbitrator found, on WhatsApp messages, audio recordings and transaction data, that the trades were manipulated, induced by promises of high returns, and continued under pressure, amounting to blatantly unauthorised and prejudicial trading. The Court also held that the broker was vicariously liable for fraudulent acts carried out by its Alliance Partner and employees in the course of the broker's business, so no patent illegality or perversity justified interference under Section 37.
Absence of pre-trade authorisation is not conclusive of unauthorised trading and, by itself, may only trigger regulatory consequences; a client who does not object within a reasonable time cannot ordinarily disown the trades. Here, however, the HC upheld the arbitral award because the arbitrator found, on WhatsApp messages, audio recordings and transaction data, that the trades were manipulated, induced by promises of high returns, and continued under pressure, amounting to blatantly unauthorised and prejudicial trading. The Court also held that the broker was vicariously liable for fraudulent acts carried out by its Alliance Partner and employees in the course of the broker's business, so no patent illegality or perversity justified interference under Section 37.
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