In a landmark ruling, the Supreme Court has decided that a husband can be held responsible for his wife’s stock market debt based on an oral agreement. The case involved a significant debt in the wife’s trading account. Both the husband and wife had separate accounts with the stockbroker, who claimed they agreed to operate them jointly.
The husband transferred funds from his account to cover the wife’s losses, but the debt grew due to a market crash. The stockbroker sought recovery through arbitration, holding both parties liable. The husband disputed this, but the tribunal ruled in favor of the broker.
The Supreme Court upheld the tribunal’s decision, stating that the husband’s involvement in the transactions established shared liability. The husband must repay the debt of ₹1,18,48,069/- with 9% annual interest.
