Bombay High Court
Nirmal Bang Securities Pvt. Ltd vs Erach Khavar on 29 October, 2018
Author: S.C. Gupte
Bench: S.C. Gupte
arbp742-17.doc
sg
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
ARBITRATION PETITION NO.742 OF 2017
WITH
NOTICE OF MOTION NO.2020 OF 2017
IN
ARBITRATION PETITION NO.742 OF 2017
Nirmal Bang Securities Pvt. Ltd. ...Petitioner
vs
Erach Khavar ...Respondent
WITH
ARBITRATION PETITION NO.228 OF 2018
(NOT ON BOARD)
Erach Khavar ...Petitioner
vs
Nirmal Bang Securities Pvt. Ltd. ...Respondent
.....
Mr. Naushad Engineer, a/w. Mr. Sharad Bansal, Mr. Ajay Khandhar and
Mr. Jayant Gaikwad, i/b. Mr. Ajay Khandhar, for the Petitioner in
ARBP/742/2017 and Respondent in ARBP/228/2018.
Mr. Bimal Rajasekhar, for Respondent in ARBP/742/17 and for Petitioner in
ARBP/228/18.
CORAM : S.C. GUPTE, J.
DATED : 29 OCTOBER 2018 P.C. :
. Heard learned Counsel for the parties. The award is an NSE award under a two tier arbitration regime. The trading member is aggrieved by the appellate award of the NSE Arbitration Tribunal in favour of the Respondent, whereas the Respondent is aggrieved by reduction of his claim while granting the award. Since both parties are aggrieved by the award, Pg 1 of 2 ::: Uploaded on - 31/10/2018 ::: Downloaded on - 02/11/2018 00:57:23 ::: arbp742-17.doc the award may require consideration. Hence, both petitions are admitted.
2. The NSE has withheld an amount of Rs.46,60,000/- from the trading account of the Petitioner in Arbitration Petition No.742 of 2017. As a condition of stay of the award, the Respondent may be permitted to withdraw that amount against furnishing of a suitable bank guarantee with a view to secure the amount in case the final orders in the arbitration petition go against him and he is required to bring back the amount. The bank guarantee in the form, as may be acceptable to the Prothonotary and Senior Master of this Court, may accordingly be furnished by the Respondent for entire amount of Rs.46,60,000/-. Upon a certificate being issued by the Prothonotary and Senior Master, the Stock Exchange to release the amount of Rs.46,60,000/- to the Respondent. Subject to this condition, the execution of the impugned award is stayed. It will be open to the Court to require the Respondent to bring back the amount with interest in case the matter is decided against the Respondent. Since the bank guarantee fully covers the principal amount, the Respondent may furnish a suitable undertaking to the Prothonotary and Senior Master to bring back the same with interest, in case such interest is ordered by the Court. The Stock Exchange shall release the amount upon being satisfied about the Respondent furnishing the bank guarantee as well as the undertaking referred to above to the Court. The notice of motion is disposed of in these terms.
( S.C. GUPTE, J. ) Pg 2 of 2 ::: Uploaded on - 31/10/2018 ::: Downloaded on - 02/11/2018 00:57:23 :::