Nse Settles Arbitration In Favour Of Triumph Int

A panel of arbitrators appointed by the National Stock Exchange (NSE) has passed an arbitration award in favour of Triumph International Finance India Ltd (TIFIL), a broking outfit allegedly connected to Mumbai-broker Ketan Parekh.

The arbitrators have passed an award of Rs 3.85 crore to be paid to TIFIL by one of its constituent clients. This is perhaps the first such case pertaining to TIFIL, which has been settled in its favour.

The arbitration panel has noted: "The panel is convinced that the respondent had traded through the applicant broker (TIFIL) and had made losses and the claim made by the applicant for Rs 3.85 crore for recovery from the respondent, Sunil Taneja is a valid claim. Therefore, the panel directs the respondent to pay the sum of Rs 3.85 crore to the applicant."

The NSE arbitration panel consisted of C Kamdar (presiding arbitrator), S R Shah and K K Jalan. In its reasoned award, the panel said that since the applicant had not claimed interest, the same is "not granted".

The dispute between TIFIL and Sunil Taneja arose when Taneja refuted all transactions, contract notes and bills entered into between TIFIL and himself. Taneja had contested TIFIL's claim that the transactions, mostly in K-10 scrips such as Global Telesystems, Himachal Futurstic, Padmini Technology, DSQ Software, SSI, Zee Telefilms and Cybermate Info, were not genuine transactions with him.

In the course of the arbitration, Taneja had contested that the broker had done these trades on its own account and he could not have indulged in such heavy trading running in crores of rupees because of him being a salaried employee. It was brought to the notice of the arbitration panel that Taneja worked with a reputed firm.

The arbitration panel observed that it is convinced about the relationship between the respondent and the applicant was "for a considerable period of time."

The respondent, by a letter dated September 10, 1999, had given an authority to the TIFIL, permitting the broker to adjust/hold back shares and/or any amount of funds from the respondent's pay-out, against margin, security deposit, against respondent's position as and when required.