TaxTMI 
TaxTMI 
2010 (7) TMI 273
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....pearing for the respondent No. 2 waives service of Rule on behalf of the said respondent. 2. By way of this Petition, the petitioner, which is a Private Trust, is interested in getting Demat account opened in favour of Lord Ganpati, Chintamaneshwar Deo, Suryanarayan Deo, Chintamaneshwari Devi and Laxminarayan Deo, which deities, according to the petitioner are having equal shares in corpus of the Trust. The petitioner wants to open a Demat account with the respondent No. 3-The Karur Vyasya Bank Limited for the purposes of share transactions. The respondent No. 2 herein, i.e., National Securities Depository Limited, is the controlling authority of the respondent No. 3 in connection with transactions of shares through the Demat account. The ....
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....respondent No. 2 has denied the averments made in the above Petition. It is stated in the said affidavit that there is no provision in law by which a Demat account can be allowed to be opened in the name of a deity. The learned senior counsel appearing for the respondent No. 2-Mr. Dwarkadas submitted that such a Demat account can be operated by an individual person in his name and naturally a deity cannot hold a Demat account. He further submitted that so far as Demat account is concerned, it is in connection with share transactions which requires regular monitoring every day. Mr. Dwarkadas further submitted that so far as the activities of the respondent No. 2 are concerned, they are regulated by SEBI and if any Demat account is permitted ....
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....Demat account number which is quoted for all transactions to enable electronic settlements of trades to take place. 6. The learned counsel for the petitioner Mr. Anturkar further submitted that under the Hindu Law a deity of a God or Goddess is concerned is a separate entity and there is no restriction for such deity to hold property in its name. In our view, the said principle cannot be straightaway made applicable so far as scheme of opening of Demat account is concerned. 7. The learned senior counsel for the respondent No. 2 Mr. Dwarkadas submitted that even in a Nationalised Bank, bank account cannot be allowed to be operated in the name of a deity, though of course the learned counsel for the petitioner Mr. Anturkar states that he is....
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....t by the learned senior counsel Mr. Dwarkadas, that such a Demat account cannot be allowed to be opened and since in our view, even otherwise opening of such account in the name of deities in the matter of share trading business, is rightly not considered by the respondent No. 2 as it cannot be operated by such an artificial person. The trustees can always apply in their individual capacity as trustees for opening of such an account however not in the name of deities. We agree with the submissions of learned senior counsel Mr. Dwarkadas that such type of Demat account cannot be allowed to be operated in the name of deity which not only requires signature while opening of the account but it also requires day-to-day monitoring of transactions....