NAILESH SWARUPCHAND MEHTA Vs. JHP SECURITIES PVT. LTD.

JUDGEMENT

(1.) THE petitioner is the Constituent of the respondent who is the member of the Bombay Stock Exchange (BSE). The petitioner has challenged the award dated 7th January, 2011 rejecting the claim of the petitioner herein and granting costs of Rs. 25000/ -.

(2.) THE petitioner claimed that certain entries were erroneously made in his account with the stock broker, the respondent herein, and claimed reversal of those entries and payment in lieu thereof from the respondent. The petitioner claimed a total of Rs. 87.04 lakhs under two specified types of transactions, one of which was an unauthorised journal voucher entry (JE) of Rs. 5 lakhs transferring such amount to the account of a third party and the other was Rs. 82.04 lakhs claimed under unauthorised transactions of purchase and sale of shares carried out by the respondent without the authority of the petitioner. The petitioner also claim Rs. 69.01 lakhs towards loss of profit opportunity and interest on the entire amount claimed.

(3.) THE claim of the petitioner with regard to 4 unauthorised transactions, 2 of purchase and 2 of sale of shares aggregating to Rs. 82.04 lakhs has been disbelieved upon the acknowledgments produced by the respondent before the Arbitrators for the contract notes sent to the petitioner upon the transactions being effected on his oral instructions. The petitioner has challenged the acknowledgments as not having been signed by his agent or employee whose signature was shown on the acknowledgments.