TaxTMI 
TaxTMI 
2026 (7) TMI 1625
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.... seeks issuance of direction to the respondent no. 1, i.e. Securities & Exchange Board of India [hereafter 'SEBI'] and respondent no. 2, i.e. Indiabulls Securities Limited [hereafter 'Indiabulls Securities'] to update the correct Dematerialization (Demat) Account Statement of the petitioner and to provide the same to the petitioner. He also seeks issuance of direction to SEBI, to take strict action against the Indiabulls Securities for allegedly violating the Act and Rules of SEBI. 2. In brief, the grievance of the petitioner, as set out in the petition, is that the petitioner was holding Trading Account No. DH6860 with respondent no. 2, Indiabulls Securities, through which he had purchased 9 shares of Lupin Limited on 25.08.2006. Since ....
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....d to discharge its regulatory obligations despite being informed of the matter, the petitioner has approached this Court by way of the present writ petition. 3. At the outset, the learned counsel appearing for respondent no. 1/SEBI, on advance notice, has raised a preliminary objection to the maintainability of the present writ petition. It is contended that the dispute raised by the petitioner is not amenable to the writ jurisdiction of this Court, and in this regard, it is stated that the contract note dated 25.08.2006, executed between the petitioner and respondent no. 2/Indiabulls Securities at the time of purchase of the shares in question, contains a statutory arbitration clause governing disputes between the parties. It is further....
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....e arises out of a contractual relationship between the petitioner and Indiabulls Securities, which is a private stock broker, and is essentially a private dispute. The learned counsel further draws the attention of this Court to the averments made in the petition, wherein the petitioner has stated that no other efficacious remedy is available. It is submitted that the said assertion is incorrect, as the contract note dated 25.08.2006 executed between the parties specifically provides for resolution of disputes through arbitration, at Mumbai, under the applicable Bye-laws, Rules and Regulations of the Stock Exchange. It is, therefore, contended that the petitioner has an efficacious alternative statutory remedy and the present writ petition ....
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..... A perusal of the contract note reveals that it expressly provides that it is 'Subject to Mumbai Jurisdiction'. It further stipulates that - (i) contract is made subject to the Rules, Bye-laws and Regulations and Usages of Bombay Stock Exchange Limited, (ii) the contract is subject to jurisdiction of courts in Mumbai, (iii) reference of matter to Arbitration in Mumbai as per Rules, Bye-laws and Regulations of Bombay Stock Exchange Limited, in event of any claim, difference or dispute arising between the parties out of the transactions. 11. Admittedly, apart from addressing emails and issuing a legal notice to respondent no. 2, the petitioner has not invoked any of the remedies specifically contemplated under t....
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....the merits of the case. 16. The judgment be uploaded on the website forthwith. ============= Document 1 Indiabulls TM CONTRACT NOTE - Form A (Regulation 14.2) SUBJECT TO MUMBAI JURISDICTION CONTRACT NOTE ISSUED BY MEMBERS ACTING FOR CONSTITUENTS AS BROKERS & AGENTS INDIABULLS SECURITIES LIMITED MEMBER : Bombay Stock Exchange Limited SEBI REGD. NO. : INB 010875832 : CLG NO .: 907 OTHER LEVIES,IF ANY : 1 This contract is made subject to the Rules, Bye-laws and Regulations and Usages of Bombay Stock Exchange Limited. 2. Brokerage has been charged as stated above at rates not exceeding the official scale of brokerage, 3 This contract is subject to the jurisdiction of the courts in Mumbai. 4 In the event of any claim (w....