LOTUS INVESTMENTS AND SECURITIES Vs. PROMOD S TIBREWAL

JUDGEMENT

(1.) BOTH these petitions can be disposed of by this common order since they involve the common questions. They are between the same parties.

(2.) THESE petitions are filed challenging the award passed by the Sole Arbitrator dated 24-5-1997 in Arbitrations Petition No. 191 of 1997. The claim made by the petitioner for an amount of Rs. 12,54,542. 93 came to be rejected. In Petition No. 193 of 1997 the claim made by the petitioner of Rs. 11,62,276. 69 came to be rejected.

(3.) SOME time in the middle of 1995 respondent approached the petitioner for effecting the transactions in shares and securities on behalf of the respondent. The petitioner is a share broker and member of National Stock Exchange. It seems that the respondent was holding 2 accounts with the petitioner one Zenith Investments and other Trading Account Zenith Investments. It seems one was for delivery based transactions and the other for squaring up transactions. Some time in July-August 1996 the respondent suffered heavy losses in the transaction and in spite of letters from the petitioner failed to pay the same to petitioners. The petitioners also received back certain shares regarding which the companies have raised objections and which were sold by the respondent through petitioner at the Exchange. The objections was raised that shares were jointly held by the respondent and his family members and the signatures on the Transfer Forms (Deeds) were forged etc. Because of these objections, the shares could not be transferred while the respondents were liable to the parties to pay the amounts in that respect. Respondents failed and neglected to pay the said amounts and hence the matters were referred for arbitration as per bye laws of the National Stock Exchange of India Ltd. The respondents denied the liability and filed counter claims.