INDIA INFOLINE LIMITED Vs. RAMI REDDY GAYAM

JUDGEMENT

(1.) This Original Petition has been filed, seeking to set aside the Award of the Arbitrators in F&O/C-0004/2012 dated 31.07.2012 as confirmed in Arbitration Appeal No.F&O/C-0004/2012_2 dated 11.02.2013 on the file of the National Stock Exchange and render justice.

(2.) According to the Petitioner-Company, it is a Trading Member of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), having registered with the Securities and Exchange Board of India (SEBI) under the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules, 1992 and holding Registration No.INB231097537 and Registration No.INB011097533 respectively and having a Clearing No.179 under BSE. The 1st Respondent had approached the petitioner, with a request to open the Trading and Demat Account with the intention to trade in Cash and Derivatives by signing the KYC to that effect and after due diligence, the petitioner had allowed the 1st respondent to open the account with the petitioner.

(3.) It was further submitted that the 1st respondent was a Software Engineer in USA with the Annual Income ranging between Rs.10 and 25 lakhs and the 1st respondent had traded till the 1st week of August, 2011 and not till 22.06.2011. There were Trades done in his account in the 2nd week of July, 2011 by one Prashanth Rao Boinapally, Relationship Manager of the petitioner without his approval. The 1st respondent, having permitted the said Prashanth Rao Boinapally to operate his account and trade in his account, for three months so as to compensate him for the loss, which is evident from the chat record of the 1st respondent with him, subsequently blamed the petitioner Company, when loss occasioned.