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.