TMI Blog1995 (7) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... perative and of no effect. A further declaration is sought that the Award, if any, passed would be illegal and invalid. 2. Briefly stated the facts are that the petitioner was the clerk of the 6th Respondent. The 6th Respondent was a Member of the Bombay Stock Exchange. The petitioner applied for Membership in the year 1988. It is claimed that the 6th Respondent gave his no-objection and also stood as a Guarantor. On 13-4-1989, the petitioner was enrolled as a Member. 3. The 6th Respondent claimed that the petitioner was the Proprietor of one R. Dalai Co. The 6th Respondent filed before the Bombay Stock Exchange a claim in a sum of Rs. 2.18 crores against the petitioner. The claim was in respect of transactions in 'A' Group Shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Minutes marked 'X'. 5. Issue of certified copy is expedited." The Consent Minutes read as follows: "1.We the Applicant and the Respondent by Consent appoint Mr. G.B. Desai and Mr. V.K. Shah as Arbitrators and submit to the Arbitration in respect of all claims, disputes and differences between us in accordance with the Rules, Bye-laws and Regulations of the Bombay Stock Exchange. 2.The parties will be at liberty to raise all picas, legal as well as factual for determination by the Arbitrators. 3.The Learned Arbitrators will proceed with the matter as expeditiously as possible. 4.The Award given by the Arbitrators shall be binding on the parties and shall not be challenged in any Court of Law. 5.All the cases pending in any C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having been called upon to act by notice in writing from any party or within such extended time as the arbitrators may fix with the consent of the parties to the reference or as the Governing Board or the President may allow. 261. The Governing Board or the President may if deemed fit whether the time for making the award has expired or not and whether the award has been made or not extend from time to time, the time for making the award by a period not exceeding one month at a time from the due date or extended due date of the award." Reliance was also placed upon section 37 of the Arbitration Act, 1940 ('the Act'). It was submitted that all provisions of the Limitation Act, 1963 apply-to arbitration proceedings. 9. Very fairly Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es laid down in this judgment would not apply to an Arbitra- tion under the Rules, Bye-laws and Regulations of the Bombay Stock Exchange. He also submitted that in any event the Judgment does not consider the fact that section 46 uses the word 'enactment'. He submits that the effect of the term 'enactment' being used has not been consider ed by this judgment. 11. Mr. Cooper points out that by the judgment [ Vijay Kumar H. Bohra v. Union of India, dated 10-12-1992], in Arbitration Petition No. 199 of 1991, it has already been held that an Arbitration Bye-law 248 of the Bye-laws of the Bombay Stock Exchange, is framed in exercise of the powers under section 9 of the Securities Contracts (Regulation) Act, 1956. It is held that these Bye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xchange cannot appoint an Arbitrator in place and stead of Mr. G.B. Desai. It is urged that now only the Court can appoint another arbitrator. 16. I am unable to accept this submission also. If the consent minutes are seen it is clear that, under clause 1 thereof, the arbitrators were appointed by consent and the parties have submitted to Arbitration in respect of claims, disputes and differences between them in accordance with the Rules, Bye-laws and Regulations of the Bombay Stock Exchange. There can be no doubt that this is an Arbitration as per the Rules, Bye-laws and Regulations of the Bombay Stock Exchange. If that be so, then under the Rules, Bye-laws and Regulations of the Bombay Stock Exchange, the governing body or the Preside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hange. The said Bye-law also provides that all such Contracts shall be subject to the exercise by the Governing Board and the President of the powers with respect thereto vested in it or him by the Rules, Bye-laws and Regulations of the Exchange. 19. Further, Bye-law 226(c) provides that in cases of all claims (whether admitted or not), differences and disputes arising out of or in relation to all contracts referred to in sub-clause ( a ) the parties concerned shall be deemed to have agreed and acknowledged that such contracts have been entered into and are to be performed within the City of Bombay, that they are subject to arbitration in accordance with the provisions relating to arbitration contained in these Bye-laws and Regulations. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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