Arbitration proceedings
Ambani
(Querist) 11 September 2013
This query is : Resolved
I had filed complaint through Scores regarding unauthorised transaction in my share trading account. The broker in reply to BSE had accepted that the transaction was erroneous and they were in the process of compensating me. However, they wanted me to sign an affidavit which said that I was withdrawing all my complaints before giving me my compensation. I did not agree to the same and wanted written evidence as to the amount of compensation. They sent me a mail mentioning the amount. After that surprising they changed their stance and we had to go into arbitration. In front of the arbitrator the broker's representative mentioned that their prior communication regarding admission of mistake and compensation amount did not hold good in the arbitration proceedings because of some rulings by supreme court / high court.
Can someone throw some light on this aspect. Can the broker simply deny what he has officially said before.
Guest
(Expert) 11 September 2013
Arbitrator has nothing to do with any court judgment in some other unrelated case, as he would not be authorised to take cognizance of that judgment. The arbitrator has to give his award only on the merits of your case. However the broker will be free to challenge the arbitrator's award on the analogy of the stated judgment. Only court has the jurisdiction to decide whether the present case fits within the purview of the stated judgment or not.
So, once the irregularity has been admitted in writing by the broker that would hold good in your arbitration case.
So, lodge a strong protest to the arbitrator on the judgment issue. In case he still decides the case with reference to the referred judgment, you would be free to challenge the award in the court of law.
prabhakar singh
(Expert) 11 September 2013
Agree with opinion advanced by dhingraji
prabhakar singh
(Expert) 11 September 2013
Agree with opinion advanced by dhingraji
Rajendra K Goyal
(Expert) 11 September 2013
Well advised by the expert PS Dhinga ji.
Devajyoti Barman
(Expert) 11 September 2013
Le them produce the judgement. If you could not prove their admission of compensation, then the arbitrator shall award as per merit of the case.
R.K Nanda
(Expert) 11 September 2013
nothing more to add.
V R SHROFF
(Expert) 11 September 2013
nothing more to add
EXCEPT POINTS .. it add to their point so replied.....
90% of such REPLIES , MUST BE STRUCT DOWN BY LCI ADM to correct certain Point greedy experts. Who want make quick points without any contribution.
Mr Dhingraji and others are equally rated and earned equal points >>
Is it justice ADM???
Points crazy GREEDY experts MURDABAD
Expert's Union ZINDABAD
Ambani
(Querist) 12 September 2013
They have replied to BSE in response to my claim - "The issue pertains to one of the transactions executed on 9th January, 2013 wherein there was an inadvertent error in terms of quantity while placing the order. This was immediately realized by the Dealer at the time of confirmation of the order to the complainant. Hence, in order to settle the matter amicably and as a goodwill gesture the company has agreed for compensating the complainant and in turn the complainant has also agreed for the compensation considering the inadvertent human error in placing the transaction".
Further they also sent a mail stating the amount they were offering. Both of these evidences were produced before the arbitrator.
Now if the arbitrator rules against me can I use these evidences in court against the broker.
Guest
(Expert) 12 September 2013
Definitely, you can use the evidence available with you.
I don't think the order would have been placed inadvertantly. Had that been inadvertant, what prevented the broker to sell the excess bought quantity of shares immediately after the broker realised his mistake? In my views he would have bought the excess quantity just to sell on high rate in near future or some other buyer would have backed out, while the market being volatile, would have come down later and he would not have been able to dispose of such excess quantity with profit.
Rajendra K Goyal
(Expert) 19 September 2013
You can use these evidences in the court. Well advised by the expert PS Dhingra ji.
Ambani
(Querist) 21 September 2013
Dear Sir(s),
The broker has filed a response which goes like this.
With regards to the documents attached by the Applicant in the statement of case of communications during the concilliation proceedings, the letter to IGRC (IGRC also being concilliation proceedings) and the email offering compensation, the Respondent states that, as per section 81 of the Arbitration and Concilliation Act, 1996, the parties shall not rely on or introduce as evidence in Arbitral or judicial proceedings, whether or not such proceedings relate to the dispute that is the subject of the concilliation proceedings...". The Extract of the said Section 81 of the Arbitration and Concilliation Act, 1996 is annexed herewith as Annexure -1.
The Delhi Court judgement in the case Smt. Surindar Kaur & others V/s S. Rajdev Singh and Ors has been given as reference.
From the above, it is clear that there is no admissibility of any evidence of concilliation proceedings as per the Arbitration and Concilliation Act, 1996 and hence in the present case, all annexures submitted by the applicant alongwith the statement of case showing any kind of admission or proposal made by any party cannot be considered in the Arbitration proceeedings.
Please guide whether their contention is correct.
