ABHIJEET SARASWAT Vs. NALAMATY DORAIAH

JUDGEMENT

(1.) THIS petition is filed under section 34 of the Arbitration and Conciliation Act, 1996 (for short the Arbitration Act) for setting aside the appellate award dated 4th July. 2003 passed by the Appellate bench of the Stock Exchange, Mumbai.

(2.) THE petition is a sub-broker affiliated to the respondent no. 2 who is a broker and member of the Stock Exchange, Mumbai. The respondent no. 1. who was the original claimant before the Arbitral Tribunal, was a constituent of the petitioner and was dealing in purchase and sales of shares on the Stock Exchange, Mumbai through the petitioner.

(3.) THE respondent no. 1 made the following claims against the petitioner: (i) Rs. 3,47,500/- on account of non deliver of shares. (ii) Rs. 4,30,500/- for non payment of the sales proceeds of the shares sold. (iii) Rs. 7000/- towards the dividend on the shares which were not delivered. (iv) Rs. 30,000/- towards the badla charges. (v) Rs. 85,000/- interest on the aforesaid amounts. The afore mentioned claims were referred to arbitration under bye law 248 (c) of the Byelaws of the Stock Exchange, Mumbai. By an award dated 16th December, 2002 the learned arbitrator passed an award against the petitioner allowing the claim of Rs. 3,47,500/- towards the non delivery of shares, Rs. 4,30,500/- towards the sale proceeds of the shares and Rs. 4,075/- towards the dividend. The claims for badla charges and the past interest were rejected. The claim against the respondent no. 2 who was the principal broker was also dismissed. Being aggrieved by the said award, the petitioner filed an appeal before the Appeal Bench of the Stock Exchange, Mumbai under bye law 274a. By an order dated 4th July, 2003 the Appeal Bench of the Stock Exchange. Mumbai dismissed the appeal and confirmed the award. This order petition which has been filed on 29th July, 2003.