JUGAL KISHORE RAMESHWARDAS Vs. GOOLBAI HORMUSJI

JUDGEMENT

(1.) The appellant is a share broker carrying on business in the City of Bombay, and a member of the Native Share and Stock Brokers' Association, Bombay. The respondent, Mrs. Goolbai Hormusji, employed him for effecting sales and purchases of shares on her behalf, and on 6-8-1947 there was due from her to the appellant on account of these dealings a sum of Rs. 6,321-12-0. On that date, the respondent had outstanding for the next clearance, sales of 25 shares of Tata Deferred and 350 shares of Swadeshi Mills. On 11-8-1947, the appellant effected purchases of 25 shares of Tata Deferred and 350 shares of Swadeshi Mills to square the outstanding sales of the respondent, and sent the relative contract notes therefor Nos. 2438 and 2439 (Exhibit A) to her. She sent a reply repudiating the contracts on the ground that the appellant had not been authorised to close the transactions on 11-8-1947, and instructed him to square them on 14-8-1947. The appellant, however, declined to do so, maintaining that the transactions had been closed on 11-8-1947 under the instructions of the respondent.

(2.) After some correspondence which it is needless to refer to, the appellant applied on 21-8-1947 to the Native share and Stock Brokers' Association, Bombay for arbitration in pursuance of a clause in contract notes, which runs as follows:

(3.) The respondent then filed the application out of which the present appeal arises, for setting aside the award on the ground, 'inter alia', that the contracts in question were forward contracts which were void under S. 6 of the Bombay Securities Contracts Control Act 8 of 1925, that consequently the arbitration clause was also void and inoperative, and that the proceedings before the arbitrators were accordingly without jurisdiction and the award a nullity. S. 6 of the Act is as follows: