Supreme Court Rules on BSE Payout Dispute: No Release of Funds Until Fraud Investigation Completes
The Supreme Court held that the High Court exceeded its jurisdiction under Section 482 CrPC by directing the release of funds during an ongoing fraud investigation. Emphasizing that inherent powers cannot preempt trial court findings, the SC ruled that releasing disputed money would prejudice the investigation. The funds must remain withheld until trial concludes.
Facts Of The Case:
The case involves a dispute between NDA Securities Ltd. (Appellant) and State (NCT of Delhi) & Anr. (Respondents) over the release of ₹15.90 lakhs withheld by the Bombay Stock Exchange (BSE). The appellant, a securities trading firm, alleged fraud after receiving a phone call in 2013 from an impersonator posing as client Brij Mohan Gagrani, instructing the purchase of 1 lakh shares of Ashutosh Paper Mills...