CANBANK FINANCIAL SERVICES vs CUSTODIAN

The Supreme Court held that under Section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, the proceeds from the sale of shares held by Respondent No. 2 as a broker belong to the Appellant and cannot be treated as property of Respondent No. 2. The Court established that the relationship between a broker and customer is one of trust, and thus the attachment of the Appellant's money is void. The Court ordered the release of Rs. 2.90 crores to the Appellant, emphasizing the need for further facts regarding the sale proceeds.