Bombay High Court Nimish Chandulal Shah vs Central Depository Services India Ltd on 23 December, 2025 2025:BHCOS:26170 Neeta Sawant CARBP2932024ANUGRAHA.docx ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL ARBITRATION PETITION NO.293 OF 2024 Nimish Chandulal Shah and Ors. .....PETITIONERS : VERSUS : Central Depository Services (India) Ltd. ....RESPONDENT Mr. Karl Tamboly with Mr. Reehan Ajmerwalla, Mr. Ravinchandra Hegde, Ms. Parinaz Bharucha, Mr. Kandarp Trivedi with Ms.Janani Sivaraman i/b M/s. RHP Partners for the Petitioners. Mr. Rohan Kadam with Ms. Varuna Bhanrale, Ms. Shourya Bari, Kaazvin Kapadia and Ms. Ananya Sinha i/b M/s. Trilegal for the Respondent. CORAM : SANDEEP V. MARNE, J. Digitally signed by NEETA NEETA SHAILESH SAWANT SHAILESH Date: JUDG. RESD. ON: 9 DECEMBER 2025. SAWANT 2025.12.23 20:26:24 +0530 JUDG. PRON. ON: 23 DECEMBER 2025. JUDGMENT: 1) By this Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), Petitioners have challenged the Award dated 29 April 2024 passed by the threemember Arbitral Tribunal constituted by the Central Depository Services India Ltd (CDSL). By the impugned Award, the Arbitral Tribunal has rejected ___________________________________________________________________________________ PAGE NO. 1 of 41 23 DECEMBER 2025 ::: Uploaded on 23/12/2025 ::: Downloaded on 23/12/2025 21:01:00 ::: Neeta Sawant CARBP2932024ANUGRAHA.docx the claim of the Petitioner for restoration of their securities or in the alternative for award of sum of Rs.34,72,75,447/, being the market value of securities. FACTS 2) Petitioners are the trading members, who had opened their respective trading and Demat Accounts with Anugrah Stock and Broking Private Limited (Anugrah), who was both a Stock Broker on NSE India Ltd (NSE), as well as a Depository Participant (DP) of the Respondent. RespondentCDSL is a Depository registered under the provisions of the Depositories Act, 1996 (Depositories Act). While opening their respective trading and Demat Account with Anugrah, Petitioners had executed various account opening documents including Power of Attorney. For undertaking trades in Future & Options Segment (F & O) of NSE, the trading members are required to maintain margin money. Towards their obligation of maintaining the margin monies, Petitioner had transferred funds and securities in their respective trading / Demat Accounts with Anugrah. 3) Edelweiss Custodial Services Ltd. (Edelweiss) was the Clearing Member of Anugrah, who was responsible for settling and clearing the trades undertaken by the Petitioners. On 3 August 2020, NSE withdrew the membership of Anugrah and its trading rights on account of noncompliance with the regulatory provisions of NSE. Accordingly, Anugrah was restrained from taking fresh positions in F&O, currency derivatives and commodities derivatives segment. On 10 August 2020, Anugrah addressed email to the Petitioners informing them that all their open positions were squared off and ___________________________________________________________________________________ PAGE NO. 2 of 41 23 DECEMBER 2025 ::: Uploaded on 23/12/2025 ::: Downloaded on 23/12/2025 21:01:00 ::: Neeta Sawant CARBP2932024ANUGRAHA.docx Anugrah provided contract notes in that regard. On the same day, Anugrah also provided margin statement to the Petitioners, indicating that Petitioner No.1 had credit balance of Rs.3,27,16,258/ and Petitioner No.2 had trading ledger credit balance of Rs.1 crore. On 13 August 2020, Anugrah also provided holdings statement to the Petitioners which indicated holding of securities value of following amounts : (i)Petitioner No.1Rs.13,72,86,691.15/ (ii)P