I have opened a dmat account with motilal oswal securities ltd through its subbroker based at gurgaon in jan 2008., intially i started trading with 25000/- and slowly slowly as required started putting more money to save stock from selling. In the meantime in month of feb 2008 I applied for Margin Funding and for that subbroker has taken two security cheque. they offered me orally trading limit of 5 times of my credit and T+5 days margin.
As I was doing trading mostly through my laptop online and everyday trading limit is open 5 times of my credit in the account. suddenly on 5 th march they sold my stock of 8 lacs out of 10 lacs without informing me and when i raised this matter with sub broker then they told me that there is risk selling from mumbai.
on 11th march i tried to sell rest of stock and when i sold it they raised trading limit of 80 lacs and i got a call from my Relationship manager to short reliance stock.
thus in the evening they freezed my account and pressurised me to pay liablity of 8.10 lacs on my account, and later without intimation used security cheque taken for margin funding and write it for 8.10lacs dated 15 march 2008 and banked on 9th april 2008.
As i have got calls from sub broker to clear out standing or they can lodge case in malad police station against me.
In the meantime i have made instruction to my bank to stop payment on these cheque.
Later on 9th april 2008 they booked the cheque and i did not get any intimation from their side.
Now After 3 years they have surfaced and case was lodged against me in borivali court for amount of 8.10 lacs u/s 138 and 142 of NI.
As they debit outstanding in my account on date 15 march 2008 is 8,03,000/ and they have write it for 8,10,000/- and did not get any legal notice. and later I got account statement from broker motilal oswal securities they have shifted debit to subbroker account and my liabality is nil towards them.
So please advice me remedial action I should take as case is mumbai and I am living in chandigarh.
can this we taken legally?