Bombay High Court Upholds Negative Settlement Prices in Crude Oil Futures and Regulatory Discretion.
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Case: SANJEEV JAIN v. ANIKET MEHTA
Court: Bombay High Court
Date: 24-06-2026
Law: Securities Contracts (Regulation) Act, Indian Contract Act, Sale of Goods Act, Constitution of India.
Highlights of the Judgment:
- Examination of whether the term "price" in commodity futures contracts can encompass negative values during unprecedented market volatility.
- Analysis of the applicability of the Sale of Goods Act, 1930, to cash-settled derivative transactions and contracts for differences.
- Interpretation of the Securities Contracts (Regulation) Act, 1956, as a special law overriding general contract and property principles.
- Judicial review of regulatory discretion regarding the annulment of trades and the invocation of emergency powers by exchanges.
- Assessment of the finality and irrevocability of settlements under the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
- Evaluation of the "sophisticated trader" doctrine and the binding nature of Risk Disclosure Documents in high-risk investments.
- Discussion on the maintainability of writ petitions against stock exchanges performing public functions under Article 226.