PANKAJ GOSHAR Vs. FORTUNE EQUITY BROKERS (I) LTD

JUDGEMENT

(1.) By this petition, the petitioner challenges the Award made by the Arbitral Tribunal of the National Stock Exchange directing the petitioner to pay certain amounts to the respondent. The respondent was the claimant before the Arbitral Tribunal while the petitioner was the respondent. The respondent herein had submitted the claim on 12.6.2002 claiming from the petitioner an amount of Rs.78,53,439.84/-(Rupees Seventy Eight lakhs Fifty Three thousand Four hundred Thirty Nine and Eight Four paise only). The claim of the respondent against the petitioner was on three counts. There is no dispute that the petitioner was the constituent and the respondent was the broker and there was an agreement entered into between the parties on 10.4.2000. Pursuant to the various trading activities between the petitioner and the respondent, there were various credit balances in the account of the petitioner lying with the Respondent and the group/sister concern of the Respondent trading on the Bombay Stock Exchange viz. Fortune Financial Services (I) Ltd. The first claim of the respondent against the petitioner was that the petitioner had purchased 27000 shares of Saw Pipes Ltd. during 22 nd February,2001 in the settlement no.2000/48, through Fortune Financial Services (India) Ltd., a parent company of the respondent who was the Stock broker on Bombay Stock Exchange. According to the respondent in settlement no.2001030 of the National Stock Exchange, on the instructions of the petitioner, the respondent sold 27000 shares of Saw Pipes. According to the respondent, the contract notes for the said transactions were issued. According to the respondent, an amount of Rs.21,63,429.71/- (Rupees Twenty one lakhs Sixty three thousand four hundred twenty nine and Seventy one paise only) remained due and payable by the respondent to the petitioner, but Rs.58,29,400.00 (Rupees Fifty Eight lakhs Twenty Nine thousand Four hundred only) was paid by the respondent to the petitioner by a cheque dated 5.7.2001. According to the respondent, the amount of Rs.36,65,970.29.00 (Rupees Thirty Six lakhs Sixty Five thousand Nine hundred Seventy and Twenty nine paise only) was paid in excess by the Respondent to the petitioner and therefore, this amount was recoverable by the respondent from the petitioner.

(2.) The second claim of the respondent against the petitioner was regarding sale of 95000 shares of Goldstone Technologies Ltd, by the petitioner through the respondent in Settlement nos.62 of 2000, 63 of 2000 of National Stock Exchange and Settlement no.50 of 2000 of Bombay Stock Exchange. According to the respondent, out of 95,000 shares sold by the petitioner, the petitioner had delivered only 50,000 shares and did not deliver 45,000 shares. Thus, 45,000 shares which were to be delivered by the petitioner, but were not delivered, were supplied by the respondent from its own stock and the credit of Rs.26,12,107.79.00 (Rupees Twenty Six lakhs Twelve thousand One hundred Seven and Seventy nine paise only) was given to the petitioner by the respondent.

(3.) The third claim against the petitioner was that in the separate running account maintained by the respondent of the petitioner, the amount of Rs.5,75,000.00 (Rupees Five lakhs Seventy Five thousand only) was shown as due and payable by the petitioner to the respondent as on 11.5.2001.