SATISH NARANG AND CO. Vs. PASUPATI FABRICS LTD.

JUDGEMENT

(1.) THE petitioner is engaged in the business of stock, shares and finance brokers and is stated to be a Member of Delhi Stock Exchange Association Ltd. The petitioner was approached in the second half of 1995 by the respondent to act as one of the under -writers/brokers in relation to public issue of the respondent. The agreement in this behalf was entered on 11.03.1996 for the petitioner to under -write two lakh shares of the respondent. The public issue opened in June, 1996 but was not fully subscribed. In terms of the agreement, a devolvement notice was sent to the petitioner on 01.07.1996, but the petitioner is stated to have failed to discharge its obligations in terms of the under - writing agreement. The respondent thus, made arrangements for certain companies to subscribe to the shares, who were stated to be holding the shares in trust for and on behalf of the under -writers including the petitioner.

(2.) IN view of the disputes between the parties and on a petition being filed, this High Court appointed Justice P.K. Bahri (Retd.) as the Sole Arbitrator as per the Order dated 09.11.2000. The learned Arbitrator has made and published his Award dated 20.08.2002. The petitioner aggrieved by the same has filed the objections under Section 34 of the Arbitration and Conciliation Act, 1996 (for short the said Act).

(3.) LEARNED counsel for the petitioner submitted that the Award is erroneous as it has taken note of certain documents which are disputed and has gone into issues not made out from the pleadings.