Bombay Stock Exchange vs Jaya I. Shah & Another

The Supreme Court interpreted the Securities Contract (Regulation) Act, 1956, particularly regarding the rights of third parties to recover dues from the corpus of the Defaulters' Committee. The Court held that the rights and obligations of members and constituents of the Bombay Stock Exchange are governed by the rules and bye-laws established under the Act. It was determined that the respondent, having an arbitration award against a defaulter, is entitled to a pro-rata distribution from the funds available with the Exchange, affirming the legitimacy of the Exchange's distribution process.