SYNTREX CORPORATION Vs. RAJKUMAR KESHARDEV

JUDGEMENT

(1.) This appeal is directed against the judgement and order dated 2nd May 2000 passed by a learned Single Judge of this Court dismissing the appellant's petition under section 24 of the Arbitration and Conciliation Act 1996 (for short "the Arbitration Act")

(2.) The respondent was a member of the Bombay Stock Exchange (for short "BSE") and was declared as a defaulter on 29th September 1998. The appellant made a claim on the respondent for Rs. 3 lakhs plus interest of Rs.59,503/- by making a reference to the BSE on 21st December 1998. According to the appellant, he had given to the respondent a sum of Rs.3 lakhs on account of "Vyaj Badla Transactions" which were not repaid by him. As the respondent denied the liability the dispute between the petitioner and the respondent arising out of the claim made by the appellant was referred to an Arbitral Tribunal in accordance with the bye-laws of the BSE. By an unanimous award dated 5th January 2002, the Arbitral Tribunal dismissed the reference on the ground that there were no contract notes and that the alleged Vyaj Badla Transactions were not done through the Bolt i.e. on the computerised trading system of the BSe and therefore the reference could not be entertained under the bye laws of the BSE. The Arbitral Tribunal also noted that the balance sheet of the appellant showed that the amount of Rs. 3 lakhs was paid by the appellant to the respondent as loan and advance and therefore, the money due from the respondent was not in respect of the dealings made not on the Exchange and the claim was therefore not subject to the Rules, Bye-laws and Regulations of the BSE.

(3.) Being aggrieved by the award of the Arbitral Tribunal, the appellant filed in this Court an application under section 34 of the Arbitration Act for setting aside the award. By the impugned order, the learned Single Judge held that the two findings of fact recorded by the Arbitral Tribunal viz (i) that there were no contract notes and (ii) that the transactions did not fall within the Rules, Bye-laws and Regulations of the Stock Exchange could not challenge in an application under section 34 of the Arbitration Act. The learned Single Judge held that the transactions being in the nature of the Vyaj Badla Transactions fell outside the jurisdiction of the Arbitral Tribunal under the bye laws of the BSE. The learned Single Judge therefore dismissed the application. That judgement is impugned in the present appeal.