TaxTMI 
TaxTMI 
1999 (4) TMI 501
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....lhi Stock Exchange Association Ltd. (defendant) is an approved stock exchange (the Exchange) under the Securities Contracts (Regulation) Act, 1956. Plaintiff company, as a member of the exchange, are governed by the bye laws of the Exchange (Bye-Laws). Plaintiff Company transact their business of buying and selling of shares from the cabin provided by the Exchange in their administrative office located at Indra Gandhi Institute I.P. Estate New Delhi The Exchange has also provided a computer terminal to plaintiff to facilitate the buying and selling of the shares. It is also undisputed that a surveillance machine is installed at the office of the Exchange, which handles price sensitive information regarding members' position and the trading ....
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....of one month with effect from 20-4-1999. 3. It is alleged by plaintiff that the impugned penalty of suspension was inflicted in breach of the principles of aitdi alterant partem inasmuch as no pre-decisional hearing was given to plaintiff before inflicting the impugned penalty. 4. Defendant resisted the suit contending that on investigation by the WIPRO, it was found that plaintiff had made unauthorised access to price sensitive information from the Surveillance Terminal of the Exchange. Thereupon a show cause notice dated 6-1-1999 was issued to the plaintiff. On the plaintiff's representation, the order dated 4-3-1999 was kept in tabeyance. Plaintiff sent another representation dated 19-3-1999 to the defendant against the order dated....
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.... of natural justice have been evolved to uphold the rule of law and to assist the individual to vindicate his just rights. They are not incantations to be invoked nor rites to be performed on all and sundry occasions. In Rash Lai Yadav v. State of Bihar [199'4] 5 SCC267, it was held that where the statute is silent and a contrary intention cannot be implied the requirement of the applicability of the rule of natural justice is read into it to ensure fairness and to ■ protect the action from the charge of arbitrariness. Natural justice has thus secured a foothold to supplement enacted law by operating as an implied mandatory requirement thereby protecting it from the vice of ' arbitrariness. Although there is iio express provision in t....
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....dge and information neither our firm or my clients have accessed the information for their benefit or otherwise. You may note that we are not involved in any speculative or delivery based transaction of significant value on the DSE. The undersigned had met and discussed the matter with Mr. S.S. Sodhi, Executive Director on January 12, 1999 and as discussed Mr. Dinesh Srivastava has been suspended and debarred from going to the DSE office. Further action against Mr. Dinesh Srivastava shall be taken as mutually decided. Kindly note that with effect from today following are the authorised personnel on the DSE l. Mr. SandeepDhall 2. Mr. Rajeev Arora. We deeply regret the incident and look forward in assisting the Stock Exchange i....
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....1999 plaintiff. submitted another representation against the proposed penalty of suspension. In the said representation, plaintiff again did not contest the accusation. It appears that from the very beginning, plaintiff adopted an attitude of reconciliation and they even offered to pay a reasonable penalty for the alleged misdemeanour. In this view of the matter, the Board was not under obligation to give a personal hearing to plaintiff as they (plaintiff) could not say beyond what was stated in their two representations. In such a situation, grant of a personal hearing to plaintiff would have been a useless formality because there was nothing that plaintiff could have said against the action taken. The personal hearing, could not have affe....