Case Note & Summary
The petitioner, Hardeep Bhalla, filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging an arbitral award dated 20 August 2009 passed by a sole arbitrator. The award directed the petitioner to pay Rs.5,51,969.64 with interest at 12% per annum to the respondent, M/s. Motilal Oswal Securities Limited, arising out of disputes under the Bye-Laws, Rules and Regulations of the National Stock Exchange of India Limited (NSEIL). The petitioner contended that the contract notes were sent to an incorrect email address (HVTPZ05@fastcontrol.in) and that he never received the welcome key or email ID. The court examined the record and found that the same email address had been used since 2007 till July 2008, and the petitioner had not disputed earlier transactions. The objection was only with regard to transactions from January 18, 2008 to January 22, 2008. The court held that the petitioner's contention was unacceptable in view of the undisputed position on record. The court dismissed the petition, finding no grounds to interfere with the arbitral award under Section 34 of the Arbitration Act.
Headnote
A) Arbitration - Challenge to Arbitral Award - Section 34 of Arbitration and Conciliation Act, 1996 - Email Communication - The petitioner challenged the award on the ground that contract notes were sent to an incorrect email address. The court held that the undisputed record showed the same email address was used since 2007 till July 2008 and the petitioner had not disputed earlier transactions. The objection was only for a specific period. The court found no ground to interfere with the award. (Paras 3-5)
Issue of Consideration
Whether the arbitral award directing payment of Rs.5,51,969.64 with interest can be set aside under Section 34 of the Arbitration and Conciliation Act, 1996 on the ground that contract notes were sent to an incorrect email address.
Final Decision
The petition is dismissed. No order as to costs.
Law Points
- Section 34 of Arbitration and Conciliation Act
- 1996
- scope of interference with arbitral award
- email communication as valid mode of service
- contract notes sent via email
- burden of proof on party challenging award
Case Details
2013 LawText (BOM) (02) 48
Arbitration Petition No. 983 of 2009
Mr. Ajit Kocharekar for the Petitioner, Ms. Chaitra Rao i/by M/s. Juris Matrix for the Respondent
M/s. Motilal Oswal Securities Limited
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Nature of Litigation
Challenge to arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996
Remedy Sought
Setting aside of the arbitral award dated 20 August 2009
Filing Reason
Petitioner contended that contract notes were sent to an incorrect email address
Previous Decisions
Arbitral award dated 20 August 2009 passed by sole arbitrator directing payment of Rs.5,51,969.64 with interest at 12% p.a.
Issues
Whether the arbitral award can be set aside on the ground that contract notes were sent to an incorrect email address
Submissions/Arguments
Petitioner argued that contract notes were sent to email address HVTPZ05@fastcontrol.in which was not his correct email, and he never received welcome key or email ID. Respondent relied on undisputed record showing same email address used since 2007 till July 2008 and no dispute for earlier transactions.
Ratio Decidendi
The court held that the undisputed position on record showed that the same email address was used since 2007 till July 2008 and the petitioner had not disputed earlier transactions. The objection was only for a specific period. Therefore, the challenge to the award on the ground of incorrect email address was unacceptable, and no interference under Section 34 of the Arbitration Act was warranted.
Judgment Excerpts
The submission, therefore with regard to this email address is unacceptable basically in view of the undisputed position on record that since 2007 till July 2008 the email address was same and not as contended by the learned counsel appearing for the Petitioner.
The objection, even if any, was only with regard to the transactions of January 18, 2008 to January 22, 2008.
Procedural History
The petitioner filed Arbitration Petition No. 983 of 2009 under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the arbitral award dated 20 August 2009 passed by the sole arbitrator. The petition was heard and dismissed by the Bombay High Court on 20 February 2013.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 34
