CDSL Faces Renewed Arbitration Claim from Ketan Shah After Tribunal Withdrawal

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Central Depository Services (India) Ltd (CDSL) is once again in the arbitration spotlight as investor Ketan Shah reinvokes his claim following a procedural withdrawal permitted by the Arbitral Tribunal earlier this year.

Key highlights:

- The Bombay High Court upheld the Tribunal’s April 2024 order allowing Shah to withdraw his original claim and file afresh, citing no exceptional rarity or prejudice to CDSL.

- Shah had initially filed claims over alleged negligence involving demat transactions with Anugrah Stock & Broking, a CDSL participant.

- The Tribunal dismissed the proceedings as withdrawn, granting liberty to reinitiate arbitration under fresh notice.

Legal context:

- CDSL challenged the Tribunal’s authority under Section 32 of the Arbitration Act, arguing the mandate had ended.

- The High Court clarified that Section 32 is a consequence of withdrawal, not a restriction on the Tribunal’s procedural discretion under Section 19.

Outlook:

- Shah is expected to file a revised claim with updated documentation and audit findings.

Sources: Verdictum, 24Law, LegalDeli, IBCLaw, CaseMine