New Delhi, Feb. 18 -- The Supreme Court of India, has in a ruling last week, held that a husband is legally liable to repay his wife's stock market debt of around Rs.1.18 crore along with 9 per cent interest, based on a verbal contract, according to a report by Bar and Bench.

In its ruling, the apex court noted that a husband can be held "jointly and severally liable for his wife's stock market debts" on the basis of an oral contract and depending on the nature of their financial dealings, it said. We explain.

According to a case filed by stock brokers AC Chokshi, husband-wife couple Jatin Pratap Desai and Heena Jatin Desai approached them in 1999 to open trading accounts, as per the report.

In 2001, Jatin tried to offset the losses in...