INDIABULLS SECURITIES LIMITED Vs. RAMESH CHAND GUPTA

JUDGEMENT

(1.) THIS First Appeal is filed by the appellant against the impugned judgment of the court below dated 16.10.2012 whereby objections under Section 34 of the Arbitration & Conciliation Act, 1996 filed by the appellant/M/s. Indiabulls Securities Limited, were dismissed. By the Award, the respondent no.1 herein, and who was the claimant in the arbitration proceedings, was awarded damages by the Arbitrator/respondent no.2/Justice Mr. V.S.Aggarwal (Retd.), Sole Arbitrator on the ground that the appellant herein (respondent in the arbitration proceedings) wrongly liquidated the holdings of the claimant/respondent no.1 although there was no balance due in the commencement of the trading on 21.01.2008 because in the morning of 21.01.2008, a cheque of the respondent no.1/claimant stood deposited in the bank account of the broker/appellant/objector, which was in the same bank of respondent no.1/claimant and if there was any delay for crediting of the account of the appellant by the Bank, then the claimant/respondent no.1 cannot be held liable.

(2.) THIS aspect has been dealt by the court below in paras 5 to 7 of the impugned judgment and which read as under: -

(3.) THE contention of the appellant is not only wholly frivolous but totally against the pleadings, the entire basis on which the arbitration proceedings took place and the matter which was argued in the objections filed under Section 34. Para 5 of the written statement of the appellant talks only of the balance not at the end of the trading of 21.01.2008 but at the commencement of trading in the morning of 21.01.2008. As already stated above, the appellant/respondent no.1 had cleared his balance because his cheque was deposited in the account of the appellant in the morning of 21.01.2008 and there was no delay on the part of claimant/respondent no.1 to make payment with respect to the margin shortfall.