NIRMAL BANG SECURITIES PVT LTD Vs. TILAK BACHAR

JUDGEMENT

(1.) This appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 against an order dated 23.02.2017 passed in Misc. Case No.15 of 2017 by the Learned Single Judge, South 24 Parganas, Alipore whereby the Learned Judge had dismissed an application filed by the appellant under Section 34 of the Act.

(2.) Briefly stated the facts are that, the appellant was a registered trading member of the National Stock Exchange (NSE) and provided trading facilities to its clients both in shares and in securities in the cash as well as the derivative segments. Around August 2013, the respondent approached the appellant to commence trading activities as a client and after filling the requisite documents and obtaining a Unique Client Code, the respondent made an initial payment of Rs.50,000/- to the appellant on 28.08.2013. Thereafter, the respondent commenced trading activities through the appellant on the Stock Exchange. Between August 2013 and 31 October, 2013, the respondent frequently traded through the appellant and admittedly during this period a number of payments were debited as well as credited to the account of the respondent by the appellant. From the nature of transactions which the respondent had carried out for that period of approximately three months, it appears that the respondent was not a long term investor but was a trader and was trading primarily in the futures and options segment.

(3.) The disputes between the parties relate to the transactions which occurred on 31.08.2013. On that date, a number of trades were executed by the appellant on behalf of the respondent. In fact, between 10.05:32 hours and 14.20:03 hours on 31.10.2013, 57 orders were placed on the system in the futures segment leading to a turnover of Rs. 11,95,577.19 (Debit - Rs. 6,06,47,308.11; Credit - Rs. 5,88,69,268.08). The corresponding settlement bill for these transactions dated 1 November, 2013 showed a net debit balance of Rs.12,76,974.08 against the respondent.