ICICI SECURITIES LTD vs RIDHI SIDDHI INVESTMENTS

Judgment text excerpt

Neeta Sawant CARBP No. 390 OF 2024 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMM. ARBITRATION PETITION NO. 390 OF 2024 ICICI Securities Ltd. …..PETITIONER : VERSUS : Ridhi Siddhi Investment & Anr. ….RESPONDENTS Mr. Victor K. Fernandes, for the Petitioner. Mr. S.L. Shah i/b. Shah Legal, for Respondent No.1. Ms. Anushka Shetty with Mr. Nikhil Dhole i/b. MLS Vani and Associates for Respondent No.2. CORAM : SANDEEP V. MARNE, J. Reserved On : 25 FEBRUARY, 2026. Pronounced On : 17 March, 2026. Judgment : 1) This is an interesting case where the constituent/investor raised a complaint before the National Stock Exchange Limited complaining about action of the Trading Member/Stockbroker in selling its shares purchased under the Margin Trading Facility (MTF) on account of technical glitch in the software leading to non-placement of requisite pledge by the investor thereby causing loss to the investor. The mistake is admittedly attributable to the stockbroker. The Stock Exchange referred _____________________________________________________________________________ PAGE NO. 1 OF 27 17 March 2026 Neeta Sawant CARBP No. 390 OF 2024 the dispute to an Institute for online dispute resolution mechanism which appointed a Conciliator. The Conciliator made attempt to resolve the dispute through conciliation and while submitting the Failure Report, determined the value of claim adjudicable in the arbitration. Strangely, the investor did not file any claim, but the Trading Member/Stockbroker was advised to challenge the report of the Conciliator qua the claim value determined by her in the Report. The challenge to the Conciliator’s Report was raised by Stockbroker under a misconception that the Conciliator awarded Rs.75,00,000/- to the investor. The inves