ASHOK KUMAR Vs. SANJEEV GUPTA

JUDGEMENT

(1.) IN the suit requiring defendants 1 and 2 to render true and correct accounts of the dealings on behalf of the plaintiff and upon such true and correct rendition of accounts, a decree for recovery of the amounts, so determined and found due and payable to the plaintiff and requiring defendant No.3 to take effective action against defendants 1 and 2, defendants 1 and 2, by this LA., under Section 34 of the Arbitration Act, pray for the stay of the proceedings in this suit requiring the plaintiff to be directed to approach defendant No.3, Delhi Stock Exchange, for appointment of the arbitrator in accordance withthe law.

(2.) IT is the say of the plaintiff that the plaintiff is a mamber of Kanpur Stock Exchange and the plaintiff started having dealings with defendants 1 and 2, who are the members of Delhi Stock Exchange (Defendant No.3), from September 1990,that dealings of purchase and sale of shares continued till February 1992 and during this period, large transaction has taken place with defendant No.2, for which, the plaintiff has not been paid his du.es nor defendants delivered the shares for the last more than an year.

(3.) ON behalf of defendants 1 and 2, reliance has been placed on the decision in the case of Mis. Prasad and Company versus Shri Satish Gupta and Another reported in 56(1994) Delhi Law Times, page 267. In the case before the learned Single Judge of this court, plaintiff as well as the defendant were the members of Delhi Stock Exchange Association Ltd. and the suit was for the recovery of the money on the strength of dishonoured cheque, issued by the defendant in favour of the plaintiff conceraing the Stock Exchange transactions and in the light of these facts it has been held that "the arbitration clause would apply and the suit liable to be stayed under section 34 of the Arbitration Act". It can not be disputed even for a moment that clause (a) of bye- law 247 would apply to the members of defendant No.3 and all claims, differences and disputes also with any other person, with whom the member shares brokerage shall be referred to and decided by the arbitration, as provided in the Rules, Bye-laws and Regulations of the exchange.