9911796707
TMI Blog1999 (12) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... the Capital Market Trading Regulations of the National Stock Exchange provides a period of limitation of three months for referring disputes to arbitration. According to the petitioners, the cause of action to the respondents accrued against the petitioners on 23-7-1996 whereas the dispute has been referred to arbitration on 20-12-1998. It is clearly beyond the period of three months. The learned council submits that the Arbitrator has totally misconstrued and mis-appreciated the Bye-laws of the respondent No. 2 to hold that the claim is not barred by limitation. The learned counsel appearing for the respondents, on the other hands, submits that though the cause of action did arise on 23-9-1996, according to him, as some shares were returne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : "5. Arbitration In case of any claim, complaint, dispute or difference between Trading Members or between Trading Member and Constituent related to trading on NSE Capital Market segment, the party/parties thereto shall resolve such claim, complaint, dispute or difference only by arbitration as per the procedure prescribed in this Chapter within 3 months of the date when it arose. The party/parties shall not have recourse to any other legal avenues except and to the extent specifically stated herein. The procedure prescribed herein is subject to the Bye-laws of the Exchange to the extent not provided herein and in case of any inconsistency the Bye-laws shall prevail." The respondent No. 2 has also framed Bye-laws. Chapter IX of the B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs so that it can be said that the period of limitation gets extended. The letter dated 5-12-1997 referred to by the learned counsel for the respondents firstly is beyond the period of three months from 23-7-1996 and secondly, its contents do not show that it can operate as an acknowledgment. Thus, it is clear to my mind that the reference of the dispute in February 1998 was clearly beyond the period of three months from the date of accrual of the cause of action. The learned counsel for the petitioners also relied on a judgment of this court in Arbitration Petition No. 365 of 1999 decided on 28-10-1999. In the result therefore, the petition succeeds and is allowed. Petition is granted in terms of prayer clause ( a ). - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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