JUGAL KISHORE RAMESHWARDAS versus MRS. GOOLBAI HORMUSJI

JUGAL KISHORE RAMESHWARDAS versus MRS. GOOLBAI HORMUSJI

Section 6 of Bombay Securities Contracts Control Act, 1925, does not apply to employment contracts between broker and constituent, as these are not contracts for sale/purchase of securities; thus, arbitration proceedings based on these contract notes are not void and the award is not invalid on the grounds asserted.

Parties
Appellant: Jugal Kishore Rameshwardas; Respondent: Mrs. Goolbai Hormusji
Jurisdiction
India
Judgment Date
04 April 1955
Procedural Posture
Civil Appeal / On Appeal From Bombay High Court Judgment Dated 29 June 1951 in Appeal No. 93 of 1949, Arising Out of the Order Dated 16 September 1949 in Award No. 45 of 1949
Outcome
Order of Bombay High Court set aside. Appeal succeeds on the point not taken in lower courts; case remanded for rehearing.
Legal Topics
Brokerage Contracts, Principal Agent Relationship, Arbitration Agreement Validity, Void Contracts Under Statute
Arbitration Contract Law Securities Regulation Brokerage Contracts Principal Agent Relationship Arbitration Agreement Validity Void Contracts Under Statute

Case Brief

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Parties

Jugal Kishore Rameshwardas

Appellant

Mrs. Goolbai Hormusji

Respondent

Procedural Posture

Civil Appeal / On Appeal From Bombay High Court Judgment Dated 29 June 1951 in Appeal No. 93 of 1949, Arising Out of the Order Dated 16 September 1949 in Award No. 45 of 1949

Legal Issues

  1. 1 Whether disputes arising from the principal-agent employment relationship are subject to s.6 of Bombay Securities Contracts Control Act, 1925
  2. 2 Whether the contract notes are void under Rule 167 of Native Share and Stock Brokers' Association
  3. 3 Whether arbitration proceedings and award are void if the underlying contracts are void

Ratio Decidendi

Section 6 of Bombay Securities Contracts Control Act, 1925, does not apply to employment contracts between broker and constituent, as these are not contracts for sale/purchase of securities; thus, arbitration proceedings based on these contract notes are not void and the award is not invalid on the grounds asserted.

Court Disposition

Order of Bombay High Court set aside. Appeal succeeds on the point not taken in lower courts; case remanded for rehearing.

Orders

  • Appeal to be reheard on remaining grounds. Parties to bear own costs up to this point. Further costs to be determined by High Court.