shares trading transaction
vipul shah
(Querist) 19 March 2013
This query is : Resolved
whether civil court has jurisdiction to handle the case regarding shares and securities? as the matter is that the shares sub broker has counter filed a civil suit against our civil suit of demanding genuine bills and contract notes later on sub broker found to be un regd sub broker as the SEBI issued letter for the same and the transactions found to be un correct by SEBI now the latest status of the case that civil court has ordered in both cases to go to competent authority.even then the un regd sub broker go to high court for stay on it now my question is why court entertains such un authorised person? what should i do to get myself to be out of it and is there any judgements regarding that the civil court has no jurisdiction for shares securities transactions related cases as arbitration facilities r there and we could not go there as we have not been given bills and contract notes now please kindly advise what to do ?
Devajyoti Barman
(Expert) 20 March 2013
If there is no arbitration clause n=between the customer and the broker, the civil court does have power to adjudicate the dispute.
vipul shah
(Querist) 20 March 2013
is there any judgements regarding that the civil court has no jurisdiction for shares securities transactions related cases as arbitration facilities r therein the stock exchange.ALSO ADVISE ME THAT HOW UN REGD.SHARE SUB BROKER CAN DEMAND ON FICTITIOUS BILLS OF ITS OWN IN THE COURT OF LAW.WHAT SHOULD I DO FOR THAT?
ajay sethi
(Expert) 20 March 2013
in contract wherein there is arbitration clause case has to be refrrred to arbitration . if sub broker has moved court draw attention to the arbitration clause in contract . court will refer case to arbitration
Raj Kumar Makkad
(Expert) 20 March 2013
As there is an arbitration clause in your case so civil court has no jurisdiction to try and decide such suit and it requires to be referred to the arbitrator. There are many judgments on this point so do search on indiankanoon.
