MOTILAL OSWAL SECURITIES LTD Vs. SANDEEP PAUL

JUDGEMENT

(1.) THE petition under Section 34 of the Arbitration Act, 1996 with respect to the arbitral award dated 22nd January, 2009 in so far as it directs the petitioner to pay a sum of Rs. 92,35,914/- to the respondent is for admission.

(2.) THE petitioner is a Stock Broker Member of the National Stock Exchange of india Limited (NSE ). The respondent was a client/constituent of the petitioner. According to the petitioner, a sum of Rs. 28,63,727. 45 p. was due from the respondent. The respondent denied the said claims. This led to the disputes being referred to arbitration in accordance with the byelaws of NSE. The respondent, before the arbitral tribunal, while denying the claim of OMP no. 407/2009 Page 1 of 8 the petitioner also contended that the petitioner had without authorization and unlawfully retained his shares valued on 4th january, 2008 at Rs. 2. 3 Crores; the respondent thus besides seeking the return of the said shares, also made a counter claim against the petitioner for total sum of Rs. 2,92,556. 91 p. including on account of unauthorized trades, illegal transaction charges, wrongful losses created due to unauthorized trades and excess brokerage charges.

(3.) THE arbitral award holds the sum of rs. 28,63,727. 45 p. to be due from the respondent to the petitioner. The arbitral tribunal has also rejected the counter claim of the respondent for unauthorized trades, illegal transaction charges, wrongful losses created due to unauthorized trades and excess brokerage charges.