GYAN CHANDRA VIDYASAGAR Vs. KRISHNA KUMARI JAIN

JUDGEMENT

(1.) The .present petition has been filed by the petitioner under Section 33 of the Arbitration Act, 1940 for declaration that the Arbitration Agreement dated April 26,1993 executed between the parties is invalid in law, null and void and further to hold that the arbitration proceedings under the Agreement are null and void.

(2.) The petitioner is a member of Delhi Stock Exchange and is carrying on the business of stocks and shares brokers at the floor of Delhi Stock Exchange which is a body constituted under the Securities. (Contract) Regulation Act, 1956. Respondent No. I has been dealing with the sale and purchase of stocks and shares with the petitioner and she through her husband and attorney. Dr. S.C. Jain filed a criminal complaint against the petitioner under the provisions of Sections 409,420, 477, 406 and 417 of the Indian Penal Code in respect of the alleged business transactions. This complaint was filed in the year 1984 in the Court of Chief Metropolitan Magistrate and is still pending in the Court of Metropolitan Magistrate, Delhi.

(3.) The learned Counsel for the petitioner has contended that the petitioner entered into an Arbitration Agreement on April 26, 1993 in order to resolve the disputes and differences amicably and as these disputes are also the subject matter of criminal complaint which was causing inconvenience and harassment to the parties, therefore, the agreement dated April 26,1993 was entered into as a solution to deal with the disputes and problems mutually and they were referred to the arbitration of the named Arbitrator.