ANKIT BIMAL DEORAH Vs. MICROSEC CAPTIAL LTD.

JUDGEMENT

(1.) BY this petition filed under section 34 of the Arbitration and Conciliation Act, 1996 the petitioner has impugned the arbitral award dated 29th May, 2012 passed by the appellate arbitral tribunal constituted under the rules, regulations and bye -laws of the National Stock Exchange of India Limited. Some of the relevant facts for the purpose of deciding this petition are as under : -

(2.) THE petitioner herein was the original claimant whereas the respondent herein was the original respondent in the arbitral proceedings. On or about 3rd October, 2006, the petitioner executed a Member Client Agreement with the respondent for carrying out trading in F&O segment of the National Stock Exchange of India Limited and was allotted a client code by the respondent who is registered member of the National Stock Exchange of India Limited. It is the case of the petitioner that the petitioner had deposited 22,500 shares of Bombay Rayon Fashions Ltd. with the respondent as collateral against margin requirement. The petitioner executed various transactions of sale and purchase of equity shares and stock futures i.e. derivatives -F&O segment through the respondent as his broker.

(3.) IT is the case of the petitioner that the branch manager of the respondent has found the debit balance in the account of the petitioner on 11.30 a.m. on 22nd January, 2008 and informed him about the ledger debit and asked him to sell the shares worth Rs. 8 lacs. Accordingly, the petitioner instructed the respondent to sell 3,500 shares of Bombay Rayon Fashions Ltd. valued approximately Rs. 8 lacs. The respondent accordingly carried out the said transaction and sold 3,500 shares out of 22,500 shares of the said company.