RELIANCE SECURITIES LTD Vs. VIVEK SHARMA

JUDGEMENT

(1.) This appeal arises out of an order passed by the Addl. District Judge Delhi in Suit No. 757/2008 whereby vide order dated 03.08.2009, the Addl. District judge has dismissed the objections filed by the appellant under Section 34 of the Arbitration & Conciliation Act 1996 against the award pronounced by the Arbitrator Shri Ravi Kant against the appellant in this case.

(2.) Brief background of the case is, that appellant an incorporated public limited company doing business as Stock Broker is a member of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Appellant company provides both online trading (internet trading) as well as off line trading to its clients as per the terms and conditions of their client member agreement. Admittedly respondent No.1 Mr. Vivek Sharma was one of their clients. As per client agreement dated 12.11.2006 respondent No.1 too had the facility of online trading. As per the statement of case put forth by respondent No.1 before Ld. Arbitrator, respondent No.1 started facing various kinds of problems and deficiencies in service on the part of the appellant Company since December 2006. In his seven odd complaints qua 18 instances, he has explained that while trading on the internet through the appellant company he came across deficiencies in service namely viz purchase and sale order of stocks were not executed despite specific commands for hours together. It is stated that the system of appellant co., used to show messages like "IN PROCESS", "MARKET IS CLOSED", "ORDER REJECTED", "REJECTED AS NO RESPONSE FROM BANK" even though bank account & respondent No.1 had sufficient money. It is case of the respondent No.1 that despite placing order for sale of several script/ bunch of shares on account of the faults of the appellant, his instructions were not complied with for hours together and all this resulted into heavy financial loses to him. It is pointed out that there were instances where his instructions were not complied for hours together in the name of deficiencies in systems and its execution.

(3.) The arbitration proceedings were carried out in Delhi by the sole arbitrator wherein the appellant company also participated throughout the proceedings. After conclusion of hearings of both the sides ld. Arbitrator passed an award in question as referred to supra. Feeling aggrieved by this award appellant company has preferred these objections in hand. Detail reply was filed on behalf of respondent No.1.