RAJENDRA KUMAR BOTHRA Vs. VENTURA SECURITIES LIMITED

JUDGEMENT

(1.) The Petition is under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, the Act), whereby challenge is made to the Award dated 2nd September, 2008 passed by the learned Arbitral Tribunal constituted under the Byelaws, Rules and Regulations of National Stock Exchange of India Ltd. (F & O Segment) (for short, NSEIL).

(2.) The basic facts in Arbitration Petition No.89/2009 are as under: The petitioner had been investing in shares through respondent since August 2004 under the client code no.R 202. All the dealing were done through a subbroker Mr.Punit Jhaveri. The petitioner was also dealing in Futures and Options (F & O) trading through respondent. For this trading the petitioner was required to maintain certain minimum margin requirements, in form of equity shares. Accordingly, the petitioner had deposited various share with respondent towards the margin. Since inception of their relationship the respondent never insisted on clearing of any shortfall in Mark to Market on the next business day & nor made / effected payment in respect of credit in the petitioner's account on day to day basis. There was an understanding between the respondent and the petitioner that debit if any for mark to market should be paid off within 4 to 5 days and if there is a credit then it may be paid to the petitioner as and when demanded. This arrangement was in existence since 2004 and was followed by both the parties.

(3.) On 18.01.2008, there were few transaction which were outstanding (Open positions) on behalf of the petitioner with the respondent. There was debit balance of Rs. 4,92,372 in petitioner's accounts on 18.01.2008.