Supreme Court Rebukes RBI for Remaining a Bystander as YES Bank Operated Clandestinely  ||  Supreme Court: Lower Fresh Bids Alone Cannot Justify Cancellation of an Auction  ||  Supreme Court Directs Delhi Police to Produce Section 163 BNSS Orders and Preserve CCTV Footage  ||  Supreme Court Affirms Menstrual Hygiene as a Fundamental Right, Warns States of Contempt  ||  Supreme Court Flags AI-Generated Fake Judgments Submitted in a Party’s Case Compilation  ||  Karnataka High Court: Vijay Mallya’s Flamboyant Lifestyle Hinders Settlement of Bank Claims  ||  Delhi High Court: Women can be Booked for Gang Rape without Physically Committing it  ||  Delhi High Court: Litigants Must Track Their Cases and Cannot Blame Lawyers for Their Own Inaction  ||  Allahabad High Court: Contract Workers Must Prove Work Parity With Regular Staff for Equal Pay  ||  Allahabad High Court Directs UP Trial Courts to Decide Maintenance Execution Cases Within Six Months    

Bombay Stock Exchange Ltd. v. New India Assurance Co. Ltd. - (National Consumer Disputes Redressal Commission) (02 Mar 2016)

Insurer liable even if insuree does not follow own bye-laws strictly

MANU/CF/0047/2016

Consumer

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.

Relevant : Kandimalla Raghavaiah and Co. vs. National Insurance Co. and Anr. MANU/SC/1165/2009 State Bank of India vs. B.S. Agricultural Industries (I) MANU/SC/0420/2009

Tags : STOCK EXCHANGE   DEFAULT   GUARANTEE FUND   INSURANCE  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved