GEOJIT FINANCIAL SERVICES LIMITED Vs. NALANI RAJKUMAR

JUDGEMENT

(1.) This Appeal under Sec. 37 of the Arbitration and Conciliation Act is at the instance of the respondent in Arbitration OP No.681 of 2012. The dispute essentially emanates out of trading in shares carried out by the appellant on behalf of the 1st respondent and the same was referred to the Arbitration Tribunal constituted by the National Stock Exchange of India Limited.

(2.) The claimant/1st respondent herein made a claim for a sum of Rs.6,60,20,018.00 with 24% interest from December 2009 till March 2011. The essence of the claim which is necessary for the disposal of this Appeal is as follows:

(3.) The appellant is a stock broker registered with the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited. The respondent entered into a Member Constituent Agreement with the appellant on 15/3/2000, in and by which, they agreed to trade in listed shares and trade codes were also assigned. During the course of the transactions, the respondent found that the appellant had entered into several unauthorized transactions and raised a complaint regarding such unauthorized transactions on 25/8/2008. Upon being informed, the main office of the appellant in Kochi assured that a due enquiry will be conducted and no further unauthorized transaction will take place. Certain corrective measures were taken and the issue that arose in 2008 was said to have been closed soon thereafter.