BOMBAY STOCK EXCHANGE vs JAYA I SHAH

The Supreme Court interpreted the Securities Contract (Regulation) Act, 1956, particularly regarding the rights of third parties to claim 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 framed under the Act. It was determined that the respondent, having an arbitration award against a defaulter, was entitled to a pro-rata distribution from the funds available with the Exchange, affirming the legitimacy of the claims made by the respondent.