SUKHBIR SINGH YADAV Vs. MOTILAL OSWAL SECURITIES LTD

JUDGEMENT

(1.) THE challenge by means of this first appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (in short ,,the Act), is to the impugned judgment dated 7.11.2009 which dismissed the objections of the appellant under Section 34 of the Act.

(2.) THE facts of the case are that the respondent no.1/broker entered into a member client agreement with the appellant/client on 16.2.2006. It was the case of the respondent no.1/claimant in the arbitration proceedings that after having conducted various trades/transactions, as per the instructions of the appellant, and the appellant having paid monies on two occasions, on account of payments due for the trades done, as on 18.12.2006 there was a debit balance of Rs.1,86,256.74 which was payable by the appellant to the respondent no.1. Since this balance was not paid in spite of repeated communications and reminders arbitration proceedings were invoked and a claim petition was filed for the said amount. THE respondent contested the proceedings and took up a defence that the trades were conducted by the respondent no.1 on behalf of the appellant without any notice to or knowledge of the appellant. It was stated that the respondent no.1 carried out unauthorized trades and therefore the respondent no.1 was not entitled to the amount claimed. It was also stated that no contract notes were sent to the appellant. THE Arbitrator by his Award dated 16.11.2007 allowed the claim petition and awarded the amount of Rs. 1,86,256.74 to the respondent along with interest.

(3.) THE court below has dismissed the objections by making the following observations.