D K RAVICHANDRAN; UMA Vs. CREAM INVESTMENT AND TRADING COMPANY LIMITED; NATIONAL STOCK EXCHANGE OF INDIA LIMITED

JUDGEMENT

(1.) These Original Side Appeals are directed against the common order, dated 11.07.2008, passed in Transfer Original Petition Nos.633 and 634 of 2006, by the learned Single Judge of this Court.

(2.) The appellants herein, as petitioners, have filed Transfer Original Petition Nos.633 and 634 of 2006, on the file of this Court, praying to set aside the award dated 27.11.2002, passed by the Arbitrator. In both the petitions it is averred that the petitioners have become constituent of the first respondent/trading member. The first respondent is having its registered office at Mumbai and Administrative Office in Coimbatore. The first respondent is a member of National Stock Exchange of India Ltd.,(NSE). The petitioners have transferred some shares to the first respondent on 22.5.2000 and 23.5.2000. The first respondent has settled the dues of Rs.7,257.85. The petitioners have decided to sell the shares of Karnataka Bank Ltd., and ITC Badrachalam Limited and approached the first respondent, on 11.10.2000. The first respondent has suggested that since Karnataka Bank Shares are in physical form and not dematerialised, can be transferred through one M/s.Bhavana Enterprises and the same has also carried on its business in the precincts of the first respondent's office. The petitioners have acted upon the suggestion put forth by the first respondent and transferred 500 shares of ITC Badrachalam Limited and 1500 shares of Karnataka Bank Ltd., to the said M/s.Bhavana Enterprises. After sometime, the petitioners have not received the due amounts. For settling the claim of the petitioners, a reference has been made to an Arbitrator.

(3.) In the counter filed on the side of the first respondent, it is stated that the Arbitrator is not having jurisdiction to entertain the claim of the petitioners and further, the first respondent has had no privity of contract with M/s.Bhavana Enterprises and therefore, the claim of the petitioners is liable to be rejected.