J K KASHYAP Vs. M G CAPITAL SERVICES

JUDGEMENT

(1.) By this order I propose to dispose of this petition filed by the petitioner under Section 34 of the Arbitration and Conciliation Act,1996 seeking setting-aside of the impugned Award dated 25.5.2000 rendered by Respondent No.2 in the Arbitration Case No.DSE/ARB/36. The relevant facts for the purpose of these objections may be first recapitulated.

(2.) The Respondent No.1 who is doing the business of Stock Broker is also a Member .of Delhi Stock Exchange Association Ltd. (hereinafter to be referred as 'DSE') with SEBI Registration No.INB050701232. An Agreement dated 26.2.1998 was executed between Respondent No.1 and the petitioner for trading in respect of those securities admitted for dealing with the DSE. Agreement was for investing, trading, Badla Financing in securities in DSE as per its bye-laws. Another Agreement of even date was entered into between the petitioner and the Respondent No.1 for dealing on the National Stock Exchange of India Ltd (NSE). The Respondent No.1 claimed that the petitioner owed him an amount of Rs.9,57,905.27p in respect of various dealings on the basis of aforesaid Agreement and sent legal notice dated 16.1.1999 for this purpose. It also demanded Rs.1,00,000.00 towards dishonour of cheque No.232464 dated 31.12.1998 drawn on Corporation Bank, Bhikaji Cama Place, New Delhi. The petitioner disputed this liability and replied by his communication dated 30.1.1999 in which he made a counter-claim in the sum of Rs.12,48,129.50 from the respondent No.1 towards the amount against sale of 2600 SBI shares refund security deposit of Rs.5 lakhs, refund of Badia Finance and towards the cost of non-delivery of 1000 shares of Satyam Computers.

(3.) As disputes arose between the parties, the respondent No.1 approached the machinery of arbitration as provided under the bye-laws of the DSE. On the respondent No.1 approaching DSE, the respondent No.2 was appointed as Arbitrator who sent notices to the parties after registering the case as DSE/ ARB/36. These arbitration proceedings have resulted into an Award dated 25.5.2000 as per which the petitioner was directed to pay a sum of Rs.716898.37p to the respondent No.1. This is an ex-parte Award. The petitioner has challenged this award by means of present petition.