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Informist, Monday, Aug. 17, 2026

 

NEW DELHI – The Supreme Court Monday refused to form a panel on National Spot Exchange's plea seeking recovery of INR 9.37 billion dues from its trading member N.K. Proteins Ltd. and others. The Bench led by Chief Justice of India Surya Kant said that he was not inclined to interfere with the Bombay High Court's order, which also rejected National Spot Exchange's plea, at the current stage.

 

National Spot Exchange had requested the apex court to form a panel, like in its 2014 case, to assess the liabilities and ascertain the assets of the respondents. In the 2014 case, a committee was to take permission of the court to sell the assets of the defaulters in order to pay dues of the National Spot Exchange. 

 

National Spot Exchange operated an electronic exchange platform for commodity trading. In 2007, a gazette notification exempted "forward contracts of one-day duration" on the National Spot Exchange platform from provisions of the Forward Contracts Regulation Act, 1952, subject to conditions. In 2013, the Department of Consumer Affairs instructed National Spot Exchange to suspend all forward contracts and to ensure all existing contracts were settled as per their due dates. Consequent to this regulatory instruction, National Spot Exchange announced closure of trading in all paired contracts. As a result of the default by members of the exchange, there was a failure in making payouts to its traders, resulting in a default of about INR 54.03 billion.

 

The purported payment defaults on the National Spot Exchange platform led to widespread litigation involving multiple stakeholders, including traders, brokers, and the exchange's parent company. The traders who suffered financial losses due to the default have claims that remain disputed, particularly by National Spot Exchange, 63 Moons Technologies Ltd., and associated entities. 

 

NK Proteins Ltd is one of the largest defaulters in the INR 56 billion National Spot Exchange payment default crisis with a liability of INR 9.37 billion. National Spot Exchange had alleged that the defendants, acting as trading members and clients on its platform, engaged in fraudulent and collusive trades, defaulted on payment obligations, and wrongfully benefited from transactions executed on the exchange. 

 

The high court had said that it has to first examine the issue of fraud to ascertain whether N.K. Proteins is liable to make any payment. "The prayers in this Notice of Motion are premature. After the pleadings are complete and the issues are framed, this court, at an appropriate stage during the trial, may consider whether the facts and circumstances of the case warrant the invocation of the powers under section 75, read with Order XXVI of the CPC (Code of Civil Procedure) to appoint a court Commissioner." Challenging the high court order, National Spot Exchange moved the apex court.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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