9911796707
TMI Blog2012 (4) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... e raised after the period of six months prescribed by the bye-laws of the National Stock Exchange ('NSE'). It was further held that the Arbitral Tribunal set up under the bye-laws of the NSE lacked jurisdiction to deal with the claim of the Petitioner with regard to non-compliance of instructions given by him on 17th June 2005 for transfer of 4114 shares as it was an off-market transaction. 2. Respondent No.1, Indiabulls Securities Limited ('ISL') appointed the Petitioner as Remisier on 1st February 2002. A client account with ID No.10839 was opened by the Petitioner on 7th March 2002 with an initial deposit of Rs.10,000. 3. On 16th May 2002, a client account with ID No.11454 was opened and on 31st May 2002, the Petitioner transferred 411 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itration Application. As regard the claim for Rs. 1,00,000/-, the formal dispute in respect of this amount was first raised on the 3rd November, 2004 (Exhibit No.P8) i.e. well after the expiry of six months from the date (30.06.2003) when this amount was placed in the hands of Respondent Company. As such there is no alternative but to conclude that the Applicant's claim for the sums aggregating Rs. 1,10,000/- is barred by limitation as per the provision contained in Byelaw No.3, Chapter XI of the Byelaws of NSEIL. It is to be further noted that the period of limitation laid down in the Byelaw no.3 cannot be extended merely by the letters raising disputes written by the Applicant and his advocate to the Respondent Company." 7. As regards th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by ISL with the instructions to re-transfer 4114 shares, reference is made to Clause 15 of the Agreement which reads as under: "Arbitration: Any and all disputes arising out of or in connection with this agreement or its performance shall be settled by arbitration in accordance with the Bye-Laws of NSE/BSE." 10. On behalf of ISL it is submitted that bye-laws of the NSE are statutory in nature. Chapter XI thereof is a complete code with respect to the arbitration proceedings conducted thereunder. It is stated that as per the NSE bye-laws every claim, difference or dispute is to be referred for arbitration under the bye-laws within six months from the date on which such claim, dispute or difference arose or is deemed to have arisen. Bye-l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iry of 6 months from the date on which the money was placed in the hands of the ISL. It is further pointed out that the six months period under the NSE bye-laws has a statutory force. Reliance is placed on the judgments of Bombay High Court in Harinarayan G. Bajaj v. LKP Securities Ltd. 2005 (3) Comp. LJ 236 (Bom.), Nirav Securities (P) Ltd. v. Mrs. Prabhuta Motiram Adhvaryu 2002(6) Bom CR 745 and Jagmohan Singh Gujral v. Satish Ashok Sabnis 2004 (1) Arb. LR 212 (Bom.). It is pointed out that the six months limitation period prescribed in the Bye-law 3 of Chapter XI of the NSE bye- laws has been upheld by the Supreme Court in HCG Stock and Share Brokers Ltd v. Gaggar Suresh AIR 2007 SC 395 and The Stock Exchange, Mumbai v. Vinay Bubna AIR 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulation) Act, 1956. The said bye-laws would prevail over the Limitation Act, 1963. 15. This Court is unable to find any serious error having been committed by the learned Arbitrator in holding the Petitioner's claim to be barred by limitation. 16. As regards the instructions given by the Petitioner in its letter dated 17th June 2005, it will be recalled that the learned Arbitrator held the said instruction to be an off-market transaction. The Award of the learned Arbitrator in this regard is based on a possible interpretation of the bye-laws. Indeed, it does not envisage the carrying out of off-market transactions by ISL. Consequently, even on this ground, no error can be found with the impugned Award. 17. For the aforementioned reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
