RELIANCE SECURITIES LTD., MUMBAI Vs. BADRINATH M BODHAI

JUDGEMENT

(1.) By this petition, the Petitioner seeks to challenge the Award passed by the Sole Arbitrator appointed under the bye-laws, rules and regulations of the National Stock Exchange of India Limited.

(2.) The Petitioner is a member of National Stock Exchange and Bombay Stock Exchange and is a stock broker. Respondent No.1 is a constituent registered with the Petitioner. Respondent No.2 is a Sub- Broker affiliated to Petitioner and registered with the Securities and Exchange Board of India Act, 1992 SEBI. The Respondent No.1 is a resident of village Saikheda, taluka Niphad, District Nashik. He runs a medical shop in the village.

(3.) On 28 December 2006, Respondent No.1 approached the Petitioner for opening a Trading account. A Member Client Agreement and other documents were executed between the parties. It is a case of the Petitioner that the Respondent registered himself as an On-line client of the Petitioner and voluntarily had opted for digital mode of communication. On 20 May 2007 there were certain transactions in the account of Respondent No.1. According to the Petitioner, the Petitioner furnished a Contract Note for the transaction executed on 28 May 2007. On 23 June 2009, the Respondent No.1 filed a complaint with the Investor Grievance Redressal Cell IGRC of National Stock Exchange which was disposed of on 12 January 2010. On 19 April 2010, the Respondent No.1 filed Statement of Claim before the Arbitrator who was appointed as per rules and bye-laws of National Stock Exchange. The Petitioner filed it's reply and both the parties filed their Written Submissions. By Award dated 18 August 2010, the Sole Arbitrator directed the Petitioner and the Respondent No.2 to pay an amount of Rs.4,13,867/- along with interest at the rate of 12 % p.a. from 1 July 2007. The Petitioner filed an appeal before the Appeal bench of National Stock Exchange which was disposed of as not maintainable. Thereafter the present petition under Section 34 has been filed.