VIJAY JAIN Vs. INVESTNET SECURITIES INDIA LIMITED

JUDGEMENT

(1.) RULE, returnable forthwith. Learned Counsel the respondent waives service. By consent, taken up for hearing and final disposal forthwith.

(2.) IN these proceedings under section 34 of the Arbitration and Conciliation Act, 1996, the petitioner seeks to challenge an Award of an Arbitral Tribunal constituted under the Bye-laws, Rules and Regulations of the National Stock Exchange of India Ltd. By its Award dated 19th April, 2002, the Arbitral Tribunal has directed the petitioner to pay to the respondent, an amount of Rs. 31,62,159/- together with interest thereon at the rate of 10% p. a. from 1st April, 2001 till the date of the Award and at the rate of 18% p. a. from the date of the Award till payment.

(3.) THE claim of the respondent in the arbitral proceedings is that the petitioner was a constituent of the respondent and that commencing from the year 1999 the respondent executed for and at the instance of the petitioner transactions in shares of the companies listed on the National Stock Exchange (N. S. E.) from time to time. The total amount that is claimed, Rs. 31. 62 lakhs, was in respect of dealings made upto August 2000. The respondent filed before the Arbitral Tribunal, copies of its Ledger Account reflecting transactions made during the period December 1999 and March 2000 which showed a debit balance of Rs. 31. 39 lakhs and an endorsement by the petitioner recording thereon that these outstandings were "seen". Thereafter, a meeting was held between the parties at which joint minutes were drawn up to 4th June, 2000. The minutes recorded that the petitioner had agreed to liquidate the outstandings of the respondent by restarting business dealings with the respondent. According to the respondent, transactions continued until 15th August, 2000 as of which date an outstanding of Rs. 31. 62 lakhs became due and payable. Thereafter, there were no further transactions with the petitioner.