A division bench of Calcutta High Court set aside a decree of Rs 5 crore passed by a single judge of the High Court against Dinesh Singhania, a suspended stock broker of the Calcutta Stock Exchange(CSE).
Singhania filed appeal against the order. Pratap Chatterjee counsel for Singhania argued in the court that there was no admission that CSE has any outstanding with Singhania.
CSE opposed the appeal.
While allowing the appeal, the bench of Justice Asoke Ganguli and Justice Devi Prasad Sengupta held that in the suit, CSE failed to make out a case that it has any outstanding against Singhania as such the order of single judge set aside.
The bench also observed that the single judge should hear out the case as early as possible. However, on the plea of the CSE the bench fixed the matter on February 19 for considering the issue relating to injunctions existing against Singhania.
Singhania now in judicial custody following a First Information Report (FIR) lodged by the CSE alleging that Singhania has link with the multicrore share scam that rock the CSE in March 2001. The kolkata police arrested Singhania.
Following a suit filed by CSE for recovery of the outstanding to the tune of Rs 5.82 crore, the single judge had directed Singhania to furnish a security of Rs 5 crore within a stipulated period failing which a decree of Rs 5 crore can be executed against Singhania by CSE.