GYAN CHANDRA VIDYASAGAR Vs. KRISHNA KUMARI JAIN

JUDGEMENT

(1.) In this suit, the award of sole arbitrator, appointed pursuant to an arbitration agreement dated 26.04.1993, published on 28th October, 1998 is challenged by the defendant/objector.

(2.) The brief facts necessary for deciding this case are that the claimant/defendant had entered into certain share purchase and sale transactions with the plaintiff, who was a stock broker. For this purpose she had constituted her husband as attorney through a deed. The claimant asserted that in the normal course of business at the relevant time, the broker used to conduct trading on "Badla" basis and issues a "kacha parcha", indicating the current deals and also reflecting the profit or loss in unsettled deals which were carried forward. She asserted that one such document was issued on 29.05.1978 reflecting the account which showed some outstanding and a resulting profit of Rs.5,008/-. According to her the document also reflected some carry forward to the next trading cycle containing details of shares which had remained unsettled on 29.05.1978. She, therefore, claimed a sum of Rs.49,479.36; and in respect of 100 shares of Century Spinning and 100 shares of SRF which were allegedly shown as carried forward she claimed Rs.7,76,186.74 and Rs.4,22,641.43 respectively.

(3.) It was not disputed that the claimant by a cheque dated 31.05.1978 paid the respondent a sum of Rs.10,289.73 and placed orders for purchase of three companies, shares of different lots. The claimant apparently approached the Police authorities alleging misappropriation and cheating. Investigations and other criminal proceedings arising out of her complaint were pending for almost 15 years. When so, on 26.04.1993, the claimant entered into an agreement with the respondent/broker, which after recounting, briefly the inter se transactions, stated that the disputes pending between them would be referred for arbitration by Mr. M.L. Jain.