:1: IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.2392 OF 2003 WRIT PETITION NO.2392 OF 2003 WRIT PETITION NO.2392 OF 2003 Satya Prakash Aggarwal of Mumbai, Indian Inhabitant residing at 62, Khushnuma Apartments, M.L.Dhanukar Marg, Mumbai 400 026. .. Petitioner V/s 1.National Stock Exchange of India a Company incorporated under the Companies Act, 1956 having its registered office at Exchange Plaza, Bandra Kurla Complex, Bandra (E), Bombay 400 051. 2.The Securities and Exchange Board of India, having its registered office at Mittal Court, ‘B’ Wing, 1st Floor, 224, Nariman Point, Mumbai 400 021. 3.Mr.Bhavesh Dhirajlal Sethia Stock Broking Company Pvt.Ltd. a Company incorporated under the Companies Act, 1956 having its registered office at Kalyangi Margi & Co. East & West Building, 55 Bombay Samachar Marg, Fort, Mumbai 400 023. 4.Y.H.Malegam, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra Kurla Complex, Bandra (East) Bombay 400 051. 5.S.Venkiteswaran, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 6.R.H.Patil, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 7.Ravi Narain of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, :2: Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 8.J.Ravichandran, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. .. Respondents WITH WITH WITH WRIT PETITION NO.2735 OF 2004 WRIT PETITION NO.2735 OF 2004 WRIT PETITION NO.2735 OF 2004 Sandeep Aggarwal presently residing at Villa No.9, Al Manaria, UMM Sequim, Dubai, UAE represented herein by his duly constituted attorney Mr.Satya Prakash Aggarwal by Power of Attorney dated 23.04.1986 .. Petitioner V/s 1.National Stock Exchange of India a Company incorporated under the Companies Act, 1956 having its registered office at Exchange Plaza, Bandra Kurla Complex, Bandra (E), Bombay 400 051. 2.Y.H.Malegam, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra Kurla Complex, Bandra (East) Bombay 400 051. 3.S.Venkiteswaran, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 4.R.H.Patil, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 5.Ravi Narain of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 6.J.Ravichandran, of Bombay, :3: Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 7.The Securities and Exchange Board of India, having its registered office at Mittal Court, ‘B’ Wing, 1st Floor, 224, Nariman Point, Mumbai 400 021. 8.Mr.Bhavesh Dhirajlal Sethia Stock Broking Company Pvt.Ltd. a Company incorporated under the Companies Act, 1956 having its registered office at Kalyangi Margi & Co. East & West Building, 55 Bombay Samachar Marg, Fort, Mumbai 400 023. WRIT PETITION NO.2764 OF 2004 WRIT PETITION NO.2764 OF 2004 WRIT PETITION NO.2764 OF 2004 Priya Doctor of Bombay, Indian Inhabitant, residing at 2, C Windcliffe, 50 D Peddar Road, Bombay 400 026. .. Petitioner V/s 1.National Stock Exchange of India a Company incorporated under the Companies Act, 1956 having its registered office at Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 2.Y.H.Malegam, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (East) Bombay 400 051. 3.S.Venkiteswaran, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 4.R.H.Patil, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 5.Ravi Narain of Bombay, Indian Inhabitant, :4: C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 6.J.Ravichandran, of Bombay, Indian Inhabitant, C/o.The National Stock Exchange of India, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Bombay 400 051. 7.The Securities and Exchange Board of India, having its registered office at Mittal Court, ‘B’ Wing, 1st Floor, 224, Nariman Point, Mumbai 400 021. 8.Mr.Bhavesh Dhirajlal Sethia Stock Broking Company Pvt.Ltd. a Company incorporated under the Companies Act, 1956 having its registered office at Kalyangi Margi & Co. East & West Building, 55 Bombay Samachar Marg, Fort, Mumbai 400 023. .. Respondents WRIT PETITION NO. 395 OF 2004 WRIT PETITION NO. 395 OF 2004 WRIT PETITION NO. 395 OF 2004 Lachhmandas L.Narang, An Indian Inhabitant and Senior Citizen residing at 301, Coste Belle, 687, Perry Cross Road, Bandra, Mumbai 400 050. .. Petitioner V/s 1. National Stock Exchange of India Ltd. A Company incorporated under the provisions of the Companies Act, 1956 having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 2. National Securities Clearing Corporation Ltd., A Company incorporated under the provisions of the Companies Act, 1956 as 100% subsidiary company of National Stock Exchange of India Ltd. having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. :5: 3. National Stock Exchange Investor Protection Fund Trust, A Trust created under the Public Trust Act by NSE having office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 4. Defaulter Committee- A/c.Bhavesh Dhirajlal Stock Broking Co.Ltd. A Committee constituted by NSE having office at "Exchange Plaza" Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 5. Securities & Exchange Board of India, A Statutory body constituted under the Securities and Exchange Board of India Act, 1992 having its office at Mittal Court, 1st Floor, C Wing, Nariman Point, Mumbai 400 021. 6. Bhavesh Dhirajlal Stock Broking Co. Ltd., A Share and Stock Broker, Trading Member of National Stock Exchange of India Ltd., having office at East & West Building, 55, Bombay Samachar Marg, Mumbai 400 021. .. Respondents WRIT PETITION NO.1959 OF 2004 WRIT PETITION NO.1959 OF 2004 WRIT PETITION NO.1959 OF 2004 M/s.Amal Association, A partnership firm having office at 77, Udyog Bhavan, Sonawala Road, Goregaon (E), Mumbai 400 063. .. Petitioner V/s 1. National Stock Exchange of India Ltd. A Company incorporated under the provisions of the Companies Act, 1956 having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 2. National Securities Clearing Corporation Ltd., A Company incorporated under the provisions of the Companies Act, 1956 as 100% subsidiary company of National Stock Exchange of India Ltd. having its registered office at "Exchange Plaza", Plot No.5, :6: 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 3. National Stock Exchange Investor Protection Fund Trust, A Trust created under the Public Trust Act by NSE having office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 4. Defaulter Committee- A/c.Bhavesh Dhirajlal Stock Broking Co.Ltd. A Committee constituted by NSE having office at "Exchange Plaza" Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 5. Securities & Exchange Board of India, A Statutory body constituted under the Securities and Exchange Board of India Act, 1992 having its office at Mittal Court, 1st Floor, C Wing, Nariman Point, Mumbai 400 021. 6. Bhavesh Dhirajlal Stock Broking Co. Ltd., A Share and Stock Broker, Trading Member of National Stock Exchange of India Ltd., having office at East & West Building, 55, Bombay Samachar Marg, Mumbai 400 021. .. Respondents WRIT PETITION NO.1961 OF 2004 WRIT PETITION NO.1961 OF 2004 WRIT PETITION NO.1961 OF 2004 Heena Daswani, An Indian Inhabitant residing at 93, Satnam Apartment, 93, G.D.Somani Marg, Cuffe Parade, Mumbai 400 005. .. Petitioner V/s 1. National Stock Exchange of India Ltd. A Company incorporated under the provisions of the Companies Act, 1956 having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 2. National Securities Clearing Corporation Ltd., A Company incorporated under the provisions of the Companies Act, 1956 as 100% subsidiary company of National Stock Exchange of India :7: Ltd. having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 3. National Stock Exchange Investor Protection Fund Trust, A Trust created under the Public Trust Act by NSE having office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 4. Defaulter Committee- A/c.Bhavesh Dhirajlal Stock Broking Co.Ltd. A Committee constituted by NSE having office at "Exchange Plaza" Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 5. Securities & Exchange Board of India, A Statutory body constituted under the Securities and Exchange Board of India Act, 1992 having its office at Mittal Court, 1st Floor, C Wing, Nariman Point, Mumbai 400 021. 6. Bhavesh Dhirajlal Stock Broking Co. Ltd., A Share and Stock Broker, Trading Member of National Stock Exchange of India Ltd., having office at East & West Building, 55, Bombay Samachar Marg, Mumbai 400 021. .. Respondents WRIT PETITION NO.2022 OF 2004 WRIT PETITION NO.2022 OF 2004 WRIT PETITION NO.2022 OF 2004 M/s.Rukhana Enterprises A partnership firm duly registered having office at 203, Golden Bungalow, 2nd Floor, Juhu Road, Santacruz (W), Mumbai 400 054... Petitioner V/s 1. National Stock Exchange of India Ltd. A Company incorporated under the provisions of the Companies Act, 1956 having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 2. National Securities Clearing Corporation Ltd., A Company incorporated under the provisions of the Companies :8: Act, 1956 as 100% subsidiary company of National Stock Exchange of India Ltd. having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 3. National Stock Exchange Investor Protection Fund Trust, A Trust created under the Public Trust Act by NSE having office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 4. Defaulter Committee- A/c.Bhavesh Dhirajlal Stock Broking Co.Ltd. A Committee constituted by NSE having office at "Exchange Plaza" Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 5. Securities & Exchange Board of India, A Statutory body constituted under the Securities and Exchange Board of India Act, 1992 having its office at Mittal Court, 1st Floor, C Wing, Nariman Point, Mumbai 400 021. 6. Bhavesh Dhirajlal Stock Broking Co. Ltd., A Share and Stock Broker, Trading Member of National Stock Exchange of India Ltd., having office at East & West Building, 55, Bombay Samachar Marg, Mumbai 400 021. .. Respondents WRIT PETITION NO.2047 OF 2004 WRIT PETITION NO.2047 OF 2004 WRIT PETITION NO.2047 OF 2004 Rakesh Damani An Indian Inhabitant, having office at 125, T.V.Industrial Estate, P.B.Road, Worli, Mumbai 400 025. .. Petitioner V/s 1. National Stock Exchange of India Ltd. A Company incorporated under the provisions of the Companies Act, 1956 having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 2. National Securities Clearing :9: Corporation Ltd., A Company incorporated under the provisions of the Companies Act, 1956 as 100% subsidiary company of National Stock Exchange of India Ltd. having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 3. National Stock Exchange Investor Protection Fund Trust, A Trust created under the Public Trust Act by NSE having office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 4. Defaulter Committee- A/c.Bhavesh Dhirajlal Stock Broking Co.Ltd. A Committee constituted by NSE having office at "Exchange Plaza" Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 5. Securities & Exchange Board of India, A Statutory body constituted under the Securities and Exchange Board of India Act, 1992 having its office at Mittal Court, 1st Floor, C Wing, Nariman Point, Mumbai 400 021. 6. Bhavesh Dhirajlal Stock Broking Co. Ltd., A Share and Stock Broker, Trading Member of National Stock Exchange of India Ltd., having office at East & West Building, 55, Bombay Samachar Marg, Mumbai 400 021. .. Respondents WITH WITH WITH WRIT PETITION NO.2048 OF 2004 WRIT PETITION NO.2048 OF 2004 WRIT PETITION NO.2048 OF 2004 Sharda J.Rukhana An Indian Inhabitant, having office at 203, Golden Bungalow, Juhu Road, Santacruz West, Mumbai 400 054. .. Petitioner V/s 1. National Stock Exchange of India Ltd. A Company incorporated under the provisions of the Companies Act, 1956 having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, :10: Bandra (E), Mumbai 400 051. 2. National Securities Clearing Corporation Ltd., A Company incorporated under the provisions of the Companies Act, 1956 as 100% subsidiary company of National Stock Exchange of India Ltd. having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 3. National Stock Exchange Investor Protection Fund Trust, A Trust created under the Public Trust Act by NSE having office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 4. Defaulter Committee- A/c.Bhavesh Dhirajlal Stock Broking Co.Ltd. A Committee constituted by NSE having office at "Exchange Plaza" Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 5. Securities & Exchange Board of India, A Statutory body constituted under the Securities and Exchange Board of India Act, 1992 having its office at Mittal Court, 1st Floor, C Wing, Nariman Point, Mumbai 400 021. 6. Bhavesh Dhirajlal Stock Broking Co. Ltd., A Share and Stock Broker, Trading Member of National Stock Exchange of India Ltd., having office at East & West Building, 55, Bombay Samachar Marg, Mumbai 400 021. .. Respondents WRIT PETITION NO.2055 OF 2004 WRIT PETITION NO.2055 OF 2004 WRIT PETITION NO.2055 OF 2004 Lachhmandas Lundiaram Narang, of Mumbai, Indian Inhabitant, Karta of L.L.Narang HUF, A Hindu Undivided Family, having my office at Curremjee Building, 2nd Floor, 111, Mahatma Gandhi Road, Fort, Mumbai 400 025. .. Petitioner V/s 1. National Stock Exchange of India Ltd. A Company incorporated under the :11: provisions of the Companies Act, 1956 having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 2. National Securities Clearing Corporation Ltd., A Company incorporated under the provisions of the Companies Act, 1956 as 100% subsidiary company of National Stock Exchange of India Ltd. having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 3. National Stock Exchange Investor Protection Fund Trust, A Trust created under the Public Trust Act by NSE of India Ltd., having office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 4. Defaulter Committee- A/c.Bhavesh Dhirajlal Stock Broking Co.Ltd. A Committee constituted by NSE of India Ltd., having office at "Exchange Plaza" Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 5. Securities & Exchange Board of India, A Statutory body constituted under the Securities and Exchange Board of India Act, 1992 having its office at Mittal Court, 1st Floor, C Wing, Nariman Point, Mumbai 400 021. 6. Bhavesh Dhirajlal Stock Broking Co. Ltd., a Company incorporated under the provisions of the Companies Act, 1956, A Share and Stock Broker, Trading Member of National Stock Exchange of India Ltd., having office at East & West Building, 55, Bombay Samachar Marg, Mumbai 400 033. .. Respondents WRIT PETITION NO.2056 OF 2004 WRIT PETITION NO.2056 OF 2004 WRIT PETITION NO.2056 OF 2004 Kishor L.Narang of Mumbai, Indian Inhabitant, having his office at Curremjee Building, :12: 2nd Floor, 111, Mahatma Gandhi Road, Fort, Mumbai 400 025. .. Petitioner V/s 1. National Stock Exchange of India Ltd. A Company incorporated under the provisions of the Companies Act, 1956 having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 2. National Securities Clearing Corporation Ltd., A Company incorporated under the provisions of the Companies Act, 1956, a 100% subsidiary company of National Stock Exchange of India Ltd. having its registered office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 3. National Stock Exchange Investor Protection Fund Trust, A Trust created under the Public Trust Act by NSE of India Ltd., having its office at "Exchange Plaza", Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 4. Defaulter Committee- A/c.Bhavesh Dhirajlal Stock Broking Co.Ltd. A Committee constituted by NSE of India Ltd., having its office at "Exchange Plaza" Plot No.5, 5th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. 5. Securities & Exchange Board of India, A Statutory body constituted under the Securities and Exchange Board of India Act, 1992 having its office at Mittal Court, 1st Floor, C Wing, Nariman Point, Mumbai 400 021. 6. Bhavesh Dhirajlal Stock Broking Co. Ltd., a Company incorporated under the provisions of the Companies Act, 1956, A Share and Stock Broker, Trading Member of National Stock Exchange of India Ltd., having its office at East & West Building, 55, Bombay Samachar Marg, Mumbai 400 033. .. Respondents :13: Mr.N.N.Seervai, Senior Advocate with Mr.Shyam Mehta, Ms.Puja Puri and Ms.Christabel Afonso instructed by M/s. Hariani & Co. for the Petitioner, in W.P.No.2392/2003 W.P.No.2392/2003 W.P.No.2392/2003 and W.P.No.2735/2004. and W.P.No.2735/2004. and W.P.No.2735/2004. Mr.Shyam Mehta with Ms.Puja Puri and Ms.Christabel Afonso instructed by M/s.Hariani & Co. for Petitioner in W.P.2764/2004. W.P.2764/2004. W.P.2764/2004. Mr.Rajiv Narulla i/by M/s.Jhangiani Narulla Associates for Petitioners in W.P.No.395/2004, W.P.No.1959/2004, W.P.No.395/2004, W.P.No.1959/2004, W.P.No.395/2004, W.P.No.1959/2004, W.P.1961/2004, W.P.2022/2004, W.P.2047/2004 & W.P.1961/2004, W.P.2022/2004, W.P.2047/2004 & W.P.1961/2004, W.P.2022/2004, W.P.2047/2004 & W.P.2048/2004. W.P.2048/2004. W.P.2048/2004. Mr.U.J.Makhija with Ms.Preeti Shah for the Petitioners in W.P.No.2055/2004 & W.P.2056/2004. W.P.No.2055/2004 & W.P.2056/2004. W.P.No.2055/2004 & W.P.2056/2004. Mr.E.P.Bharucha, Senior Advocate with Mr.V.K.Ramabhadran for Respondent No.1 (N.S.E.). in all Petitions. in all Petitions. in all Petitions. Mr. Subash Jha with Mr.Jimesh Shah and Ms.Laxmi Memon instructed by M/s.Law Global for respondent No.5 in all in all in all Petitions. Petitions. Petitions. CORAM: DR.S.RADHAKRISHNAN & CORAM: DR.S.RADHAKRISHNAN & CORAM: DR.S.RADHAKRISHNAN & SMT.V.K.TAHILRAMANI, JJ. SMT.V.K.TAHILRAMANI, JJ. SMT.V.K.TAHILRAMANI, JJ. DATE OF DECISION : 15.12.2005 DATE OF DECISION : 15.12.2005 DATE OF DECISION : 15.12.2005 DATE OF GIVING REASONS : 13.O4.2006 DATE OF GIVING REASONS : 13.O4.2006 DATE OF GIVING REASONS : 13.O4.2006 JUDGMENT: JUDGMENT: JUDGMENT: (PER DR.S.RADHAKRISHNAN,J.) (PER DR.S.RADHAKRISHNAN,J.) (PER DR.S.RADHAKRISHNAN,J.) 1. The issue involved in the aforesaid petitions is common and therefore we are disposing of all the aforesaid petitions by this common Judgment. 2. So far as Writ Petition No.2392 of 2003 is concerned, the Petitioner is praying that the Guidelines issued by Respondent No.1 and Respondent Nos.4 to 8 on 2nd April, 2002 be declared as illegal and ultravires of the Bye-laws of Respondent No.1 as well as the 1996 Guidelines. The Petitioner has also prayed for a writ :14: order or direction under Article 226 of the Constitution of India, calling for the records of the case and after going into the legality, validity and propriety of the same quashing and setting aside the Guidelines issued by Respondent No.1 and Respondent Nos.4 to 8 on 2nd April, 2002. The Petitioner has also prayed that the decisions communicated to the Petitioners vide their letters dated 26th April, 2002, 17th June, 2002 and 16th January, 2003 respectively be quashed and set aside. Similarly, the Petitioner has also prayed for a writ order or direction under Article 226 of the Constitution of India against the Respondents ordering and directing Respondent No.1 and Respondent Nos.4 to 8 to forthwith withdraw and cancel the said Guidelines dated 2nd April, 2002 and further restrain the said Respondents from acting pursuant thereto whilst deciding the Petitioners claim for being compensated under the Investors Protection Fund. The Petitioner has also prayed for an order or direction directing Respondent No.1 to act in strict compliance with and to scrupulously follow the provisions of Chapter XIII of its Bye-laws made under Section 9 of the Securities Contacts (Regulation) Act, 1956 (hereinafter referred to as SCR Act, 1956 for brevity sake) as also the 1996 Guidelines and to fully compensate the Petitioner from its Investors Protection Fund for the losses suffered by him on account of the default of the Respondent No.3 with interest. The Petitioner has further prayed for a writ or order or :15: direction to Respondent No.2 to ensure that Respondent No.1 complies with its Bye-laws and compensates the Petitioner fully for the losses suffered by him on account of the default of Respondent No.3. 3. The brief facts are as under:- . The Petitioners are all individual investors who had placed funds in the hands of their broker, Respondent No.3 for investment in the Automatic Lending and Borrowing Mechanism (hereinafter called as "ALBM" for the sake of brevity) of the National Stock Exchange. It appears that the Respondent No.3 used the abovementioned amounts meant for investing on the ALBM, to finance its personal trading losses and had been issuing fraudulent and false contract notes to its clients, including the Petitioners. As per the provisions of Chapter 13 of the Byelaws of the National Stock Exchange, the National Stock Exchange is required to maintain an Investor Protection Fund and to administer the same as per the byelaws set out therein. The National Stock Exchange set up an independent trust for the purposes of administering and managing the amounts earmarked towards the Investor Protection Fund and has delegated to the trustees the power to prescribe a procedure for the settlement of claims. The trustees appointed by the National Stock Exchange framed guidelines in 1996 for settlement of claims out of the Investor Protection :16: Fund. The relevant clause of these guidelines is reproduced as under: II 1. Nature of claims allowed II 1. Nature of claims allowed II 1. Nature of claims allowed Claims of the investors should generally fall into the following categories: (iii) Claims arising out of money in the hands of the trading member pending investment or money in the hands of the trading member which has been improperly dealt with." 4. It appears that on or about 3rd April, 2001 the Petitioners had made complaints to the National Stock Exchange with respect to the fraud perpetrated on them by Respondent No.3 and requested the National Stock Exchange to compensate them through its Investor Protection Fund for the loss caused to them. In or about June, 2001 the National Stock Exchange appointed chartered accountants to carry out an inspection/audit of the claims made by the Petitioners and many other investors in relation to Respondent No.3. The National Stock Exchange instead of instructing the chartered accountants to ascertain the claims made by the petitioners and other investors on the basis of the said guidelines, instructed the chartered accountants appointed by them to ascertain the claims made on the basis of a comparison between the contract notes submitted by the Petitioners with the data available on the NEAT system of the National Stock Exchange. The chartered accountants appointed by the National Stock :17: Exchange submitted two reports in this regard, the first one on 2nd November, 2001 and the second one on 2st February, 2002 respectively, on the basis of transactions tallying with the NEAT system of the National Stock Exchange. It is the second report dated 21st February, 2002 that forms the basis of the final rejection of the Petitioners claim by the National Stock Exchange. The said report clearly states that the claims were processed on the basis of transactions tallying with the National Stock Exchange’s NEAT system. 5. On or about 2nd April, 2002, the trustees appointed by the National Stock Exchange sought to review and decide the basis for admitting claims and basis for allocation of assets in respect of defaulter/ expelled members vesting in defaulters committee and also the basis for payment out of investors protection fund and to lay down further guidelines (April 2002 guidelines) in this regard. It is in these guidelines that a reference to the NEAT system is to be found for the first time. It is the case of the Petitioners that these guidelines are in fact nothing but a reproduction