Delhi court issues summons on trading in crypto-currency

Delhi court issues summons on trading in crypto-currency

The business of carrying forward trading without regulatory approval is illegal

A Delhi court has issued a summons in a suit filed against the business of carrying forward trading in crypto-currencies in the country, without any statutory or regulatory approval.

Additional District Judge Geetanjali of the Saket court was dealing with a suit against Olymptrade, a website operated by Saledo Global.

The petitioner sought a direction on the business of carrying forward trading in crypto-currencies, which was against the public policy of India. It maintained that any agreement to that effect would be barred under the Indian Contracts Act (ICA), 1872.

The petitioner sought a permanent injunction against the defendant, thereby restraining it from operating the business through its website or any other websites, mirror links and mobile application Olymptrade. According to the suit, the defendant in the form of trading carried out various transactions.

The plaintiff also mentioned that Olymptrade made false and erroneous claims that its client could earn profit and withdraw up to $US55,300 on an initial investment of only $US10.

The counsel for the plaintiff argued that the physical delivery of goods was a sine qua non for the conclusion of a valid contract and that the entire agreement became a wagering contract in case there was no actual delivery of goods. He said that the agreements became void on account of being hit by ICA.

It was further argued that trading in derivatives was per se legal in the country, provided it was carried out on a recognized stock exchange or a recognized market association. And also if it was carried out by an entity registered and incorporated in India. But, it required actual physical delivery of the goods.

He also placed reliance on various clickwrap service agreements to argue that the contracts for difference were per se illegal in the country and would be tantamount to wagering contracts thus being void under ICA.