GURNAM SABHARWAAL Vs. UNION OF INDIA; SECURITIES AND EXCHANGE BOARD OF INDIA; REGIONAL ARBITRATION CENTRE; C D EQUISEARCH PRIVATE LIMITED

JUDGEMENT

(1.) The petitioner is before this Court seeking that a writ be issued and the Arbitration Proceedings No.1/2014 raised by the fourth respondent as at Annexure-A be quashed.

(2.) The petitioner and the fourth respondent had entered into certain transactions whereby the petitioner had deposited the amounts with the fourth respondent for appropriate investments. The petitioner had certain issues with the fourth respondent relating to the deposit that had been made and in that light had contended that two of the employees of the fourth respondent viz., Sri Ashok Ray and Sri Vivek Ponnappa, has mislead the petitioner while acting on behalf of the fourth respondent who had caused loss to the petitioner. In that regard, the petitioner had lodged a complaint dated 18.12.2013 in the Bharathinagar Police Station. The Police on taking note of the complaint had proceeded further in accordance with law. In that background, the fourth respondent has thereafter raised the instant arbitration proceedings in No.1/2014 claiming a sum of Rs.11,00,099/- from the petitioner. The petitioner is therefore before this Court claiming to be aggrieved by the notice issued and the proceedings of the arbitration being conducted since according to the petitioner, such proceedings is not maintainable keeping in view the nature of the claim that is put forth in the claim petition before the Arbitrator.

(3.) In a normal circumstance, when a claim petition is filed in the arbitration proceedings and notice is issued, even with regard to the maintainability or jurisdiction, such contention would have to be put forth before the Arbitrator and appropriate orders would have to be passed therein. However, in the instant facts, while assailing the very proceedings initiated in the arbitration proceedings and seeking that the proceedings be quashed, the petitioner has referred to the nature of the claim that has been made therein and the same being beyond the scope of the arbitration clause provided in the agreement between the petitioner and the fourth respondent. The contention put forth in the instant petition is that the very perusal of the claim statement filed in the arbitration proceedings would indicate that a sum of Rs.11,00,099/- has been claimed by way of damages by alleging loss of reputation of the fourth respondent in view of the complaint lodged by the petitioner and the action taken by the police. Insofar as a sum of Rs.99/- which is sought to be made as a part of the claim, it is pointed out that the same is incorporated only to indicate as if the dispute is being raised in respect of the terms of the contract between the parties.