IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN

AT

JAIPUR BENCH, JAIPUR

S. B. ARBITRATION APPLICATION NO. _________/ 2019

PREM SOMANI SHARE BROKERS PVT. LTD. THROUGH ITS

DIRECTOR NAWNEET SOMANI, R/O 224, GURU
JAMBHESHWAR NAGAR-A, LANE NO. 7, GANDHI PATH
QUEENS ROAD, JAIPUR

…PETITIONER

VISHNU K. MUNDRA, LL-55, AMBER TOWER, SANSAR

CHAND ROAD, JAIPUR

…RESPONDENT

IN THE MATTER OF SECTION 11 OF THE ARBITRATION

AND CONCILIATION ACT, 1996 FOR THE APPOINTMENT
OF ARBITRATOR

TO,

THE HON’BLE CHIEF JUSTICE AND HIS COMPANION

JUDGES OF THE HON’BLE HIGH COURTOF
JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH,
JAIPUR

MAY IT PLEASE YOUR LORDSHIPS;

The Humble Applicant most respectfully submits as under:

1. That the Petitioner is filing the instant petition praying for the
appointment of an arbitrator invoking section 11 of the
Arbitration and Conciliation Act, 1996. The Petitioner was a
share-broker company registered under the name and style of
“Prem Somani Share Brokers Pvt. Ltd.” which closed its
business in March, 2018.

2. That the facts which are indispensable for the proper

adjudication of the instant petitioner are as follows. The
 Petitioner and Respondent entered into a Member-Client
agreement dated 30.05.2002 at Jaipur for investing/trading
in securities pursuant to which Client Registration application
form was given to the Petitioner by Respondent. Also, the
Petitioner had provided the Respondent photocopy of
documents such client agreement, risk disclosure document,
KYC, non-mandatory letter, etc. executed between the
Respondent and the Petitioner for which an acknowledgement
dated 13.01.2008 was provided by the Respondent. A copy of
the agreement dated 30.05.2002 and a copy of the
acknowledgement dated 13.01.2008 are annexed herewith
and marked as Annexure-1 & Annexure-2, respectively.

3. That another agreement dated 13.01.2008 was also entered

into between the Respondent and the Petitioner for
investing/trading in securities/contracts/other instruments.
A copy of the agreement dated 13.01.2008 is annexed
herewith and marked as Annexure-3.

4. That the Petitioner closed his business in March, 2018 and

intimated his clients including the Respondent about the
same and requested to put forth the claim, if any. In
pursuance to the same, the Respondent filed his claim with
National Stock Exchange (NSE) on 09.04.2018 to the tune of
Rs. 3,03,69,545.25/- (Rupees three crore three lakh sixty
nine thousand five hundred forty-five and twenty-five paisa).
It is apposite to mention here that NSE held an Investor
Grievance Resolution Panel (IGRP) meeting on 16.05.2018
and admitted the Respondent’s claim for an amount of Rs.
16,71,082.53/- (rupees sixteen lakh seventy-one thousand
eighty two and fifty-three paisa) vide Investor Grievance
Resolution Panel (IGRP) order dated 16.05.2018. A copy of the
Investor Grievance Resolution Panel (IGRP) order dated
16.05.2018 is annexed herewith and marked as Annexure-4.

5. That after the above-mentioned claim was admitted, an FIR

bearing No. 249/2018 PS Ashok Nagar, Jaipur dated
09.07.2018 was also lodged by the Respondent against the
Petitioner on false and fabricated facts. It is pertinent to
 mention here that a negative final report has been submitted
by the concerned investigation agency with the conclusion
that the matter is civil in nature.

6. That as per the provisions contained in the agreements dated

30.05.2002 & 13.01.2008 executed between the Petitioner
and the Respondent, there exists arbitration clause which is
reproduced hereunder, respectively:

“6. All trades, transactions and contracts are subject to the

rules and regulations of the Exchange and shall be
deemed to be and shall take effect as wholly made,
entered into and to be performed in the city of Jaipur and
the parties to such trade shall be deemed to have
submitted to the jurisdiction of the courts in Jaipur for the
purpose of giving effect to the provisions of the Rules and
Regulations of the Exchange.”

“13. The client and the stock broker agree to refer any
claims and/or disputes to the arbitration as per the Rules,
Bye-laws and Regulations of the Exchange and circulars
issued thereunder as may be in force from time to time.”

7. That since the sincere efforts to resolve the dispute by way of

amicable settle have failed to take effect, the Petitioner was
left with no other option but to invoke the arbitration clause
of the agreement entered into between the parties. The
Petitioner on 06.09.2019 had issued a notice invoking the
Arbitration to the Respondent. The Respondent sent a reply
dated 03.10.2019 to the notice dated 06.09.2019 and refused
to give his consent for the arbitration, the Petitioner is left
with no remedy but to approach the Hon’ble Court for the
appointment arbitrator for the resolution of the dispute
between the parties. A copy of the notice dated 06.09.2019
and a copy of the reply dated 03.10.2019 are annexed
herewith and marked as Annexure-5 & Annexure-6,
respectively.

8. That it is further submitted that as per clause 6 & 13 of the

aforementioned agreements dated 30.05.2002 & 13.01.2008
 respectively, the subject matter of the dispute can be decided
by arbitration only. Since the Respondent has refused to
participate in the process of appointment of arbitrator, this
Hon’ble Court now has the jurisdiction under section 11 of
the Act to appoint an arbitrator to resolve the dispute between
the parties.

9. That this Hon’ble Court has the jurisdiction to adjudicate the

present petition since both the aforementioned agreements
were executed in Jaipur. It is further submitted that the
Petitioner and the Respondent resides in Jaipur thereby
falling within the jurisdiction of this Hon’ble Court.

10.That a court fee of Rs. ______ is being affixed along with the
present petition.

11.That no other petition of similar nature has been filed by the

Petitioner before this Hon’ble Court or any other Hon’ble
Court.

PRAYER

It is therefore most respectfully prayed that the present

petition be allowed and this Hon’ble Court may be pleased to
appoint an arbitrator to resolve the dispute between the
parties.

Any other order/direction which this Hon’ble Court may

deem fit and necessary in view of the facts and circumstances
of the case.

Jaipur HUMBLE PETITIONER

THROUGH COUNSEL
 NOTES:

1. That no such application has previously been filed either in

this Hon’ble Court or before Hon’ble Supreme Court of India.

2. That P.F. notices and extra copies shall be filed

3. That this Petition has been typed by my private steno.

4. That the pie papers are not readily available, hence this
petition is typed on stout papers
 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN

AT

JAIPUR BENCH, JAIPUR

S. B. ARBITRATION APPLICATION NO. _________/ 2019

PREM SOMANI SHARE BROKERS PVT. LTD. THROUGH ITS

DIRECTOR NAWNEET SOMANI, R/O 224, GURU
JAMBHESHWAR NAGAR-A, LANE NO. 7, GANDHI PATH
QUEENS ROAD, JAIPUR

…PETITIONER

VISHNU K. MUNDRA, LL-55, AMBER TOWER, SANSAR

CHAND ROAD, JAIPUR

…RESPONDENT

AFFIDAVIT IN SUPPORT OF THE PETITION

I, Nawneet Somani S/o ________________, __________ of Prem

Somani Share Brokers Pvt. Ltd. R/o _________________________
do hereby take oath and state as under:

1. That I am the Director of Prem Somani Share Brokers Pvt.

Ltd. and therefore well versed with the facts and
circumstances of the case and competent to swear this
affidavit.
2. That the Annexed Petition has been drafted by my counsel.
3. That the contents of para 1 to 12 of the annexed Petition are
true and correct to the best of my knowledge.

DEPONENT

I, the above named deponent, do hereby take oath and verify

that the contents of my above affidavit from para 1 to 3 are
true to my personal knowledge. Nothing material has been
concealed and no part is false.

SO HELP ME GOD.

DEPONENT
 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN

AT

JAIPUR BENCH, JAIPUR

PREM SOMANI SHARE BROKERS PVT. LTD.

…PETITIONER

VERSUS

VISHNU K. MUNDRA

…RESPONDENT

AFFIDAVIT IN SUPPORT OF THE DOCUMENTS

I, Nawneet Somani S/o ________________, Director of Prem

Somani Share Brokers Pvt. Ltd. R/o _________________________
do hereby take oath and state as under:

1. That I am the Director of Petitioner company and am fully

conversant with the facts of the instant petition.

2. That the documents Annexure-1 to Annexure-6 are true and

correct photocopies of their respective originals.

DEPONENT

I, the above named deponent, do hereby take oath and

verify that the contents of my above affidavit from para 1 to 3
are true to my personal knowledge. Nothing material has been
concealed and no part is false.

SO HELP ME GOD.

DEPONENT
 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN

AT

JAIPUR BENCH, JAIPUR

PREM SOMANI SHARE BROKERS PVT. LTD.

…PETITIONER

VERSUS

VISHNU K. MUNDRA

…RESPONDENT

SYNOPSIS

The Petitioner and Respondent entered into a Member-Client

agreement dated 30.05.2002 at Jaipur for investing/trading
in securities pursuant to which Client Registration application
form was given to the Petitioner by Respondent. Also, the
Petitioner had provided the Respondent photocopy of
documents such client agreement, risk disclosure document,
KYC, non-mandatory letter, etc. executed between the
Respondent and the Petitioner for which an acknowledgement
dated 13.01.2008 was provided by the Respondent. That the
Petitioner closed his business in March, 2018 and intimated
his clients including the Respondent about the same and
requested to put forth the claim, if any. In pursuance to the
same, the Respondent filed his claim with National Stock
Exchange (NSE) on 09.04.2018 to the tune of Rs.
3,03,69,545.25/- (Rupees three crore three lakh sixty nine
thousand five hundred forty-five and twenty-five paisa). It is
apposite to mention here that NSE held an Investor Grievance
Resolution Panel (IGRP) meeting on 16.05.2018 and admitted
the Respondent’s claim for an amount of Rs. 16,71,082.53/-
(rupees sixteen lakh seventy-one thousand eighty two and
fifty-three paisa) vide Investor Grievance Resolution Panel
(IGRP) order dated 16.05.2018. since the sincere efforts to
resolve the dispute by way of amicable settle have failed to
take effect, the Petitioner was left with no other option but to
invoke the arbitration clause of the agreement entered into
between the parties. The Petitioner on 06.09.2019 had issued
a notice invoking the Arbitration to the Respondent. The
Respondent sent a reply dated 03.10.2019 to the notice dated
06.09.2019 and refused to give his consent for the arbitration,
the Petitioner is left with no remedy but to approach the
Hon’ble Court for the appointment arbitrator for the
resolution of the dispute between the parties.

Hence, this Petition.

COUNSEL FOR THE PETITIONER

 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN

AT

JAIPUR BENCH, JAIPUR

PREM SOMANI SHARE BROKERS PVT. LTD.

…PETITIONER

VERSUS

VISHNU K. MUNDRA

…RESPONDENT

INDEX

S. No. PARTICULARS PAGE NO.

1. Memo of the Petition
2. Affidavit in support of the Petition
3. Documents:
Annx.-1 A copy of the agreement dated
30.05.2002
Annx.-2 A copy of the acknowledgement dated
13.01.2008
Annx.-3 A copy of the agreement dated
13.01.2008
Annx.-4 A copy of the Investor Grievance
Resolution Panel (IGRP) order dated
16.05.2018
Annx.-5 A copy of the notice dated 06.09.2019

Annx.-6 A copy of the reply dated 03.10.2019

4. Affidavit in support of the Documents

COUNSEL FOR THE PETITIONER