PARVATHAM TEXTILES Vs. CHONA FINANCIAL SERVICES PVT LTD

JUDGEMENT

(1.) THIS Civil Revision Petition is directed against the order dated 17. 11. 2006 in E. A. No. 256 of 2006 in E. P. No. 219 of 2005 in Arbitration Case No. 3 of 2004 passed by the First Additional Subordinate Judge, Erode, ordering arrest of the Petitioner under Order XXI Rule 41 (3) C. P. C for disobedience of the order of the Court. The Judgment Debtor is the Revision Petitioner. For convenience, the parties are referred in their rank in E. P. No. 219 of 2005 on the file of First Additional Subordinate Court, Erode.

(2.) RELEVANT facts are as follows:- The Revision Petitioner is a Constituent of the Decree Holder, who is a Trading Member of National Stock Exchange. The Judgment Debtor had entered into an Agreement with the Decree Holder on 18. 12. 2002 and started trading at the Erode Branch of the Petitioner in the derivative segment. The Respondent / Judgment Debtor defaulted in making payments for the loss in transaction in derivatives instruments to the Petitioner / Decree Holder and thereby dispute arose between the Petitioner and the Respondent and the same had been referred to the National Stock Exchange of India Limited, who are the facilitators for the disputes in derivatives transactions in the National Stock Exchange. For resolving the dispute between the parties, an Arbitrator was appointed and the Arbitrator has passed an Award dated 12. 10. 2004, directing the Respondent / Judgment Debtor to pay to the Petitioner / Decree Holder a sum of Rs. 6,27,054. 33 with an interest of 18% per annum from the date of award till the date of realisation.

(3.) THE Decree was transmitted from City Civil Court, Chennai to First Additional Subordinate Court, Erode. For executing the Decree, the Petitioner / Decree Holder has filed E. P. No. 219 of 2005 under O. 21 R. 37 C. P. C. before the First Additional Subordinate Court, Erode to realise the amount by arrest of the Respondent / Judgment Debtor.