1. This Original Petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for brevity, “the Act”) to set aside the award of the sole Arbitrator, viz., the Second Respondent dated 20.7.2007, by which the Petitioner, who was the Respondent before the Arbitrator, has been directed to pay to the First Respondent an amount of Rs.4 Lkhs with interest at the rate of 18% per annum from the date of the Arbitral Award to the date of Fixed Deposit Receipt to be made out by the Petitioner for a period of not less than 91 days from the Clearing Bank and rejecting the counter claim of Rs.19,485.85 made by the Petitioner.

2. Application No.708 of 2010 has been filed by the First Respondent in the Original Petition, who was the Claimant before the Arbitrator, to reject the Original Petition.

3.1. The First Respondent, who is the Applicant before the Arbitrator, is a constituent of the Petitioner, which is a Trading Member and registered Stock Broker of the National Stock Exchange of India Limited, having its office at Mumbai and registered with SEBI.

3.2. It was the case of the First Respondent before the Arbitrator that in March, 2006, the First Respondent has