KOTAK SECURITIES LIMITED vs GAJANAN RAMDAS RAJGURU

Judgment text excerpt

Neeta Sawant FC-CARBP-788-2024--JUDGMENT (1).docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL ARBITRATION PETITION NO. 788 OF 2024 WITH INTERIM APPLICATION (LODG.) NO. 35173 OF 2023 Kotak Securities Limited ...Petitioner : Versus : Gajanan Ramdas Rajguru ….Respondent Mr. Pesi N. Modi, Senior Advocate with Mr. Kunal Kataria, Mr. Shailesh Prajapati & Mr. Ankit Singhal i/b Dua Associates, for the Petitioner Mr. Nitesh V. Bhutekar with Mr. Aaditya Mahamiya, for the Respondent. CORAM : SANDEEP V. MARNE, J. Judg.Reserved On : 25 NOVEMBER 2025. Judg. Pronounced On : 03 DECEMBER 2025. JUDGMENT 1) The Petition involves an interesting conundrum. Whether profits earned by a person out of an undue trade opportunity can be retained by such person or he must hand over the same to the opportunity giver is the issue which this Court is tasked upon to decide in the Petition. Petitioner erroneously made available to the Respondent, margin for execution of trades in the stock market. Respondent made use of such undue opportunity, took risk, used his skills and earned profits. Petitioner now claims that the profits made by Respondent out of such undue margin belongs to it. 2) The Petition filed by the Petitioner under Section 34 of the Arbitration and Conciliation Act,1996 (Arbitration Act) takes exception to the final Award dated 25 October 2023 passed by the Appellate Tribunal of _____________________________________________________________________________ PAGE NO. 1 of 17 3 DECEMBER 2025 Neeta Sawant FC-CARBP-788-2024--JUDGMENT (1).docx Arbitrators constituted under the Bye-laws of the National Stock Exchange of India Ltd. (NSE). By the impugned Award, the Appellate Arbitral Tribunal has set aside the order passed by the Grievance Redressal