HC refuses relief to BSE in dispute with ex-member

The vacation bench of the Bombay High Court has refused to give any relief to the Bombay Stock Exchange (BSE) in a case filed by an ex-BSE member, Yogesh Mehta.

The BSE had sought to set aside the 'lis pendence' order restraining it from selling any of the properties covered in a continuing litigation filed by Mehta.

The BSE had approached the court with a plea to allow it to continue with the process of demutualisation and corporatisation of the bourse even while the case was pending.

Mehta had filed a notice of lis pendence in February 2003 with the sub-registrar of properties which said the BSE cannot create any third-party rights on its properties during the pendancy of the suit filed by him.

In an order dated May 27, 2004, justice S C Dharmadhikari refused to grant any relief to the BSE and held that the application made by the stock exchange needs to be disposed off.

Since any interim order cannot be passed by the vacation court, the judge pointed out that the notice of motion deserves to be disposed off. But the hearing is to be expedited in the regular court on re-opening.

BSE's official spokesperson said, "The exchange is not in a position to comment as the matter is sub-judice." Ravi Goenka, advocate for Yogesh Mehta, said, "With the lis pendence getting registered, the property cannot be dealt with."

The BSE had declared Mehta a defaulter in December 1996. He challenged this order in the Bombay High Court and claimed Rs 1.13 crore from the bourse as compensation.