Stock exchange — Membership card — Not personal property of member — Cannot be attached and sold in execution of a decree against member.

24 Stock exchange — Membership card — Not personal property of member — Cannot be attached and sold in execution of a decree against member.

[ Cochin Stock Exchange Ltd v. Dhanalakshmi Bank Ltd & Ors., (2010) 159 Comp. Cas. 365 (Ker.)]

In a suit filed by the bank against the second and third respondents, the petitioner stock exchange was impleaded as a party. A decree was sought against it for realisation of the plaint claim by sale of the membership card of the second respondent in it and it was granted. The bank i.e., decree holder applied for sale of the membership card of the second respondent. The petitioner stock exchange filed objections to the execution contending that the membership card was not a private property which could be attached and sold in execution of a decree and that the petitioner stock exchange could not be compelled to sell the card of the second respondent.

The High Court allowing the petition held that since the membership was only a personal privilege, which on a declaration that he was a defaulter vested with the stock exchange, the direction issued in the decree was without jurisdiction and in violation of the statutory provisions. Even though the stock exchange failed to challenge the decree, the directions issued in violation were not executable. The bank was free to realise the decree debt from the property of the second and third respondents in accordance with law and also against their person, if the decree provided so.