TMI Blog1999 (12) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... contract notes dated 6-9-1996 and 4-10-1996 and for discharging the liability incurred by the petitioners because of that sale, the petitioners issued cheques on 30-6-1997. Those cheques were presented to the bank immediately, however, they were dishonoured and therefore, the respondents made a claim for Rs. 6,90,000 with interest. The learned counsel appearing for the petitioners submits that it is clear from the statement of the claim filed by the respondents that cause of action arose to the respondents on 6-9-1996 and 4-10-1996. He submits that according to regulation No. 5 of the Regulations framed by the respondent No. 2 - Stock Exchange, a reference of a claim to arbitration can be made within a period of three months from the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raising the claim arose on 6-9-1996 and 4-10-1996. The submission of the learned counsel for the respondents however is that the cause of action would not arise on 30-6-1997 when the cheques were issued, it will also not arise when the cheques were dishonoured in August 1997, but according to the learned counsel, the cause of action would arise in December, 1997 when the period of six months of the validity of the cheques expired. In my opinion, this submission is merely to be stated to be rejected. According to the respondent the cheques were issued on 30-6-1997 they were dishonoured in July, 1997. Even if it is assumed that the dispute did not arise when the securities were sold, the cause of action would definitely arise in July, 1997 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f arbitration is dealt with by Chapter XI which is divided into two parts, part A deals with arbitration between members and constituents and part B deals with arbitration between the members. Part A does not have any provision which can be said to be inconsistent with the provisons of regulation No. 5 and part B has a provision which is consistent with the provision of regulation No. 5. Therefore, as there is no provision in the Bye-law which can be said to be inconsistent with the provisions of regulation No. 5 dealing with the aspect of limitation, it is regulation No. 5 quoted above which will govern the period of limitation. The dispute therefore had to be referred to arbitration within three months from the accrual of cause of action. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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