HEMENDRA V SHAH Vs. STOCK EXCHANGE BOMBAY

JUDGEMENT

(1.) THIS petition is filed for a declaration that there is no valid and subsisting or binding Arbitration Agreement between the petitioner and the 6th respondent. A declaration is sought that the 3rd respondent is not entitled to fill in the vacancy caused by resignation of one Mr. G. B. Desai and that the purported appointment of one Mr. J. B. Bhatt is illegal, invalid, inoperative and of no effect. A further declaration is sought that the Award, if any, passed would be illegal and invalid.

(2.) BRIEFLY stated the facts are that the petitioner was the clerk of the 6th respondent. The 6th respondents was a member of the Bombay Stock Exchange. The petitioner applied for Membership in the year 1988. It is claimed that the 6th respondent gave his no-objection and also stood as a Guarantor. On 13th April, 1989, the petitioner was enrolled as a Member.

(3.) THE 6th respondent claimed that the petitioner was the Proprietor of one R. Dalal and Co. The 6th respondent filed before the Bombay Stock Exchange a claim in a sum of Rs. 2. 18 crores against the petitioner. The claim was in respect of transactions in A Group Shares during the period 5th November, 1986 to 18th April, 1989 and in respect of transactions in B Group Shares from 27th November, 1986 to 14th September, 1989. Arbitration under the Rules, Bye-laws, and Regulations of the Bombay Stock Exchange was invoked. The Bombay Stock Exchange appointed one Mr. G. V. Desai as an Arbitrator. On 13th September, 1991, the petitioner appointed one Mr. H. K. Shah as his Arbitrator. This was done without prejudice to his contention.