Harinarayan G. Bajaj vs Rajesh Meghani & Anr

The Supreme Court upheld the validity of the arbitration proceedings initiated by the respondent under the Arbitration and Conciliation Act, 1996, specifically Section 34, despite the respondent being declared a defaulter by the NSE. The Court ruled that the transactions were completed prior to the declaration of default, thus allowing the respondent to pursue his claim for recovery of dues. The Court affirmed the Division Bench's decision to set aside the requirement for the appellant to deposit the awarded amount, emphasizing the need for adherence to the NSE's rules and byelaws regarding defaulters.