Case Note & Summary
The Custodian filed a petition under the Special Court (Trial of Offences Relating to Transactions in Securities) Act 1992 seeking a declaration that a transaction dated 18th/19th February 1992 between respondent No.1 (C. Mackertich & Co.) and respondent No.2 (H.P. Dalal) was void. The Court considered the provisions of the Act, particularly Section 3(3), which deals with void transactions. After hearing the parties, the Court allowed the petition and declared the transaction void. The judgment was delivered orally by D.K. Deshmukh J. on 24th August 2005.
Headnote
A) Special Court Act - Void Transaction - Declaration of Nullity - Section 3(3) of the Special Court (Trial of Offences Relating to Transactions in Securities) Act 1992 - The Custodian sought a declaration that a transaction dated 18th/19th February 1992 between respondent No.1 and respondent No.2 was void. The Court examined the nature of the transaction and the applicability of the Act. Held that the transaction is declared void under Section 3(3) of the Act. (Paras 1-2)
Issue of Consideration
Whether the transaction dated 18th/19th February 1992 between respondent No.1 and respondent No.2 is void under the Special Court (Trial of Offences Relating to Transactions in Securities) Act 1992 and liable to be declared as such.
Final Decision
The petition is allowed. The transaction dated 18th/19th February 1992 between respondent No.1 and respondent No.2 is declared void.
Law Points
- Special Court (Trial of Offences Relating to Transactions in Securities) Act 1992
- Section 3(3)
- void transaction
- declaration of nullity
- Custodian's powers
Case Details
2005 LawText (BOM) (08) 126
Miscellaneous Petition No.73 of 1998
Mr S. Rustomjee with Mr G.R. Joshi and Mr Milind Jadhav i/b M/s P.M. and Mithi and Co. for Petitioner - Custodian. Mr I.M. Chagla, Sr. Counsel with Mr Dinesh P1.1randar? i/b Mis Ne9andhi Shah and Himaytullah for Respondent Nos. 1, 1A and 1B. Respondent No.2 - H.P. Dalal present in person.
C. Mackertich & Co. and others
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Nature of Litigation
Petition by Custodian under Special Court Act seeking declaration that a transaction is void.
Remedy Sought
Declaration that the transaction dated 18th/19th February 1992 between respondent No.1 and respondent No.2 is void.
Filing Reason
The Custodian believed the transaction was void under the Special Court Act.
Issues
Whether the transaction dated 18th/19th February 1992 is void under the Special Court Act 1992.
Submissions/Arguments
Petitioner argued that the transaction is void under Section 3(3) of the Act. Respondent No.2 appeared in person and did not contest.
Ratio Decidendi
Under Section 3(3) of the Special Court (Trial of Offences Relating to Transactions in Securities) Act 1992, certain transactions are void. The Court found that the transaction in question falls within the ambit of the section and declared it void.
Judgment Excerpts
This is a petition filed by the Custodian under the Special Court (Trial of Offences relating to Transactions in Securities) Act 1992 seeking a declaration that the transaction dated 18th/19th February 1992 between respondent No.1 and respondent No.2 is void.
Procedural History
The Custodian filed Miscellaneous Petition No.73 of 1998 before the Special Court at Bombay. The Court heard the matter and delivered oral judgment on 24th August 2005.
Acts & Sections
- Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992: 3(3)
