Mumbai: The Supreme Court has said in the historic decision that on the basis of oral agreement, the husband can be held jointly and separately for his wife’s debit balance in his wife’s trading account. That is, if the wife has taken loan in the stock market, then the husband will also be responsible for this, the Supreme Court has said.
While hearing a case, the Supreme Court said that if there is an oral agreement between the husband and wife, then the responsibility of repaying the debt can come on the husband. A couple invested in the stock market. But when the debt increased, the matter went to court. After this, the case was heard in the Supreme Court.
The wife suffered heavy losses in the stock market and her debt increased. When the matter went before the tribunal, both husband and wife were found to be borrowers. The husband appealed to the Supreme Court against this decision. There was no relief here. The Supreme Court clarified that even on the basis of oral agreement, the husband can be held responsible for his wife’s stock market loan. The court said that the Tribunal could impose financial responsibility on the husband under the Bombay Stock Exchange Act, 1947. The husband and wife had separate trading accounts with the appellant stock broker, but they jointly operated these accounts. The loss to the wife was compensated by the husband’s account. Debit balance increased significantly after the market declines. Therefore, the stock broker blamed both of them responsible for the loan and demanded recovery from the tribunal.
The husband challenged the stockbroker’s claim and said that his side was incorrectly presented. The husband also said that the tribunal ruled in favor of the stock broker and considered it independently responsible. When the husband challenged the tribunal, the tribunal clearly stated that the loan is the joint responsibility of both of them. The Supreme Court in its order retained the verdict and ordered the husband to be paid with an annual interest of Rs 1,18,58,000.
A historic decision of the Supreme Court has made it clear that the oral agreement among the couples investing in the stock market can also be considered valid, and if the wife is drowned in debt, then the husband also has to bear the cost of repaying the loan. Can
