IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION APPEAL NO. 12 OF 2025 Erach Khavar ....Appellant (Orig.Respondent/Petitioner)

: Versus :

Nirmal Bang Securities Pvt. Ltd. ....Respondent/

(Original Petitioner)

Mr. Bimal Rajasekhar with Mr. Sunand Subramaniam, for the Appellant.

Mr. Naushad Engineer, Senior Advocate with Mr. Sharad Bansal &

Mr. Jayant Gaikwad i/b. Ajay Khandhar & Co. for the Respondent.

CORAM : CHIEF JUSTICE, &

SANDEEP V. MARNE, J.

DATED : 25 AUGUST 2025.

JUDGMENT ( Per : Sandeep V. Marne, J.)

1) This is an Appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996 (the Act) challenging the judgment and order dated 30 April 2024 passed by the learned Single Judge of this Court allowing Arbitration Petition No. 742 of 2017 filed by the Respondent and dismissing Arbitration Petition No. 228 of 2018 filed by the Appellant. The Learned Single Judge has set aside Majority Award dated 8 August 2017 and has upheld the dissenting Award dated 14 August 2017.

2) Briefly stated facts of the case are that Respondent is a registered broker with the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) carrying on business of trading in shares and securities. Appellant opened a Depository Account with the Respondent. This is how Demat Account and Trading Account of the Appellant was opened with the Respondent. Appellant had transferred 1500 shares of Hero Moto Corporation Limited, 5,000 shares of Petronet LNG Limited and 7000 shares of ITC Limited with the Respondent towards security. During 30 June 2015 to 27 September 2015, transactions of purchase and sale of shares in the Account of the Appellant took place on the basis of instructions allegedly given by the Appellant through mobile phone and other means. Appellant suffered losses in the said transactions. Respondent sent Ledger Account to the Appellant which was not objected to by the Appellant. Respondent paid back the balance credit amount of Rs.37,829.69/- standing in the Ledger Account paid back to the Appellant on 27 January 2016.

3) On 29 June 2016, Appellant objected to the transactions carried out by the Respondent and filed complaint with the Investors Grievance Redressal Panel (IGRP) of NSE and claimed the value of shares from the Respondent. On 9 January 2017, the IGRP passed order and granted claim of Rs.46,60,000/- to the Appellant. Respondent challenged the order of IGRP by filing arbitration case with NSC. The Arbitral Tribunal passed Award dated 10 April 2017 and while dismissing Respondent’s challenge, reduced the claim of the Appellant to Rs.35,77,412/- with interest @ 12% p.a. from the date of the Award. Both the sides challenged the Award dated 10 April 2017 before the Appellate Panel of Arbitrators. The Presiding Arbitrator delivered dissenting award dated 14 August 2017 allowing the Appeal preferred by the Appellant and set aside the Award of the Arbitral Tribunal dated 10 April 2017, as well as the order of the IGRP dated 9 January 2017. The majority members of the Arbitral Tribunal however delivered separate Award dated 8 August 2017 dismissing the Appeal preferred by the Respondent and upholding the order dated 10 April 2017 but increased the claim amount from Rs.35,77,412/- to Rs.46,60,000/-.

4) Aggrieved by the majority Award dated 14 August 2017, the Respondent filed Arbitration Petition No.742/2017 under Section 34 of the Act before the learned Single Judge. Appellant was also advised to challenge in the form of Arbitration Petition No.228/2018 to the extent of non-grant of balance amount of Rs.46,60,000/- to him. By impugned judgment and order dated 30 April 2024, the learned Single Judge has allowed Arbitration Petition No.742/2017 filed by the Respondent and has set aside the majority Award and has confirmed the dissenting Award. Arbitration Petition No. 228/2018 filed by the Appellant has been dismissed. The Appellant is aggrieved by the judgment and order dated 30 April 2024 passed b