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<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> </head> <body> <div style="font-family:Verdana, Geneva, sans-serif; font-size:12px; text-align:justify"> <table width="800" border="0" style="border:1px solid #ccc;padding:5px;" align="center" cellpadding="6" cellspacing="0"> <tr> <td align="left" valign="top"> <br /> National Consumer Disputes Redressal Commission <br /><br /> Insurer liable even if insuree does not follow own bye-laws strictly<br /><br /> MANU/CF/0047/2016 - (02 Mar 2016)<br /><br /> </td> </tr> <tr> <td align="left" valign="top">Bombay Stock Exchange Ltd. v. New India Assurance Co. Ltd.</td> </tr> <tr> <td align="left" valign="top" style="background-color:#FDEDCE"><strong>The National Consumer Disputes Redressal Commission held that the Bombay Stock Exchange should not have utilised money from its Trade Guarantee Fund to meet the obligations of two defaulting members without having declared them defaulters first. It noted that BSE’s own bye-laws prohibited it from following the course of action that it did, even though amendments enabling the same were soon to be implemented. However, the Commission opined that BSE’s omission in declaring the members as defaulters immediately upon discovering default was “in order”, as it allowed them time to repay their obligations within a reasonable time. The matter, initiated by the New India Assurance company was disposed of, with BSE allowed to claim back amounts appropriated from the guarantee fund.</strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Relevant : Kandimalla Raghavaiah and Co. vs. National Insurance Co. and Anr. <manuid>MANU/SC/1165/2009</manuid> State Bank of India vs. B.S. Agricultural Industries (I) <manuid>MANU/SC/0420/2009</manuid></strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Tags : Stock exchange, default, guarantee fund, insurance</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <!--<td><strong>Source : <a target="_new" href="http://www.manupatrafast.com/">newsroom.manupatra.com</a></strong></td>--> <td align="left" valign="top"><strong>Source : newsroom.manupatra.com</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <td align="left" valign="top">Regards</td> </tr> <tr> <td align="left" valign="top">Team Manupatra</td> </tr> <tr> <td align="left" valign="top"> </td> </tr> </table> </div> </body> </html>