ANGEL BROKING LTD Vs. ARTI JAIN & ANR

JUDGEMENT

(1.) This first appeal is filed by the appellant-broking company against the impugned order of the court below dated 16.1.2014 which had dismissed the objections under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter 'the Act') filed by the appellant against the Award passed by the sole arbitrator Justice (retired) M.A.Khan allowing the claim petition filed by the respondent and awarding a sum of Rs.9,80,000/- alongwith interest at 10% p.a.

(2.) The case which was pleaded before the arbitrator by the respondent/claimant was that the Branch Manager of the appellant one Sh. R.Vishwanath carried out illegal trades from her capital segment account by utilizing the credit in that account for trades in the future and options segment and consequently her portfolio was reduced from Rs.10,01,200/- to Rs. 13,125/-.

(3.) The Branch Manager R. Vishwanath after conducting illegal trades confessed in writing to the appellant, and which confession has been used by the arbitrator to pass the Award in favour of the respondent/claimant. The arbitrator has dealt with the relevant aspects in paras 8 to 10 of the Award and which read as under:-