Delhi High Court - Orders
Rajendra Lal Virmani vs Union Of India & Ors on 4 February, 2026
Author: Purushaindra Kumar Kaurav
Bench: Purushaindra Kumar Kaurav
$~20
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4408/2024
RAJENDRA LAL VIRMANI .....Petitioner
Through: Mr. Shanti Prakash, Adv.
versus
UNION OF INDIA & ORS. .....Respondents
Through: Ms. Radhika Bishwajit Dubey CGSC
alongwith Ms Gurleen Kaur Waraich
and Mr Kritarth Upadhyay,
Advocates.
CORAM:
HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV
ORDER
% 04.02.2026
1. The petitioner claims to be the husband and sole legal heir of late Mrs. Kusum Virmani, who has passed away on 14.04.2018. It is the petitioner's case that late Mrs. Kusum Virmani maintained a trading and demat account with Respondent No. 3-Enrich Fin & Securities Ltd., a former registered trading member of Respondent No. 2-National Stock Exchange of India Ltd. (NSE).
2. Learned counsel appearing for the petitioner contends that on 12.01.2018, Respondent No. 3 was expelled as a 'trading member' by Respondent No. 2 on account of serious violations, including misuse of clients' funds, non-settlement of clients' accounts, and non-submission of records. Further, Respondent No. 2 issued a public notification dated This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/02/2026 at 20:33:59 16.01.2018 inviting claims from constituents of the expelled trading member within three months from the said date.
3. The petitioner claims that the said notification was not communicated to him on time, but as soon as he became aware of the same, he filed his claim before Respondent No. 2. However, vide communications dated 17.12.2018 and 06.11.2023, the claim was rejected on the ground that no trades had been executed on the exchange platform since 27.05.2014 and as per the National Stock Exchange's internal policy applicable to the claim, one needed to have traded within twenty-four months prior to the disablement of the trading member in order to be eligible for payment.
4. Aggrieved by the said rejection of the claim, the petitioner had filed W.P (C) 14507/2023, which was withdrawn with liberty to take appropriate recourse under the Securities Contracts (Regulation) Act, 1956 (SCRA, 1956). Subsequent to the same, the petitioner filed a review application against the rejection of his claim, before Respondent No. 2. However, again, vide communication dated 01.03.2024, the claim was rejected on the same ground.
5. In the counter affidavit filed on behalf of Respondent No. 2, it is pointed out that the petitioner has not taken recourse to the mechanism under Section 23L of the SCRA, 1956 before the Securities Appellate Tribunal before filing the present petition.
6. The petitioner, without availing alternative remedy, has again approached this Court with the following prayers:
"a. Allow the present petition;
b. Set aside and quash the letters dated 17.12.2018 bearing reference no. NSE/DCS/2018/41973/69640 and 16.05.2023 and 01.03.2024 issued by the Respondent No.2 to the Petitioner ;
c. Direct the Respondent No.2 National Stock Exchange of India Ltd., to This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/02/2026 at 20:33:59 transfer the shares of Late Smt. Kusum Virmani, received from the expelled Trading Member vide Notice dated 16.01.2018, to the Petitioner; d. Direct the Respondent No. 2 to transfer equivalent of the shares of Late Smt. Kusum Virmani, received from the expelled Trading Member vide Notice dated 16.01.2018, to the Petitioner in Indian Currency, in the alternate of prayer clause (c) e. Direct the Respondent No. 2 to pay dividends year wise on the shares of Late Smt. Kusum Virmani with interest on the dividend amounts. f. Direct the Respondent No.2 to pay compounded interest on the shares of Late Smt. Kusum Virmani, in alternate of prayer(e); g. Provide a tally of statement of accounts/ shares in the name Late Smt. Kusum Virmani, received from the expelled Trading Member vide Notice dated 16.01.2018, to the Petitioner ;
h. Direct the Respondents to bear the costs of the present proceedings before this Han 'ble Court ;
i. Pass any such other and further order (s) as this Hon'ble Court may deem and appropriate in the facts of the present case."
7. It is, thus, seen that if the petitioner has any grievance with respect to the rejection of his claim by Respondent No. 2, the remedy would lie before the Securities Appellate Tribunal.
8. Having considered the overall conspectus of the facts and situations, the Court does not find it appropriate to accede to the prayer made herein.
9. Accordingly, the petition stands dismissed.
10. Liberty, however, stands reserved for the petitioner to take appropriate recourse in accordance with law.
PURUSHAINDRA KUMAR KAURAV, J FEBRUARY 4, 2026/P/AMG This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/02/2026 at 20:33:59