TMI Blog1996 (1) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... een a member of the Stock Exchange, Bombay ('the Exchange'). However, the membership of the petitioner is presently suspended by the Governing Board of the Exchange. Prior to suspension of the membership of the petitioner, the 1st respondents had effected transactions in shares through the petitioner at the Exchange in accor- dance with rules, bye-laws and regulations of the Exchange. In respect of such transactions, certain disputes and differences arose by and between the 1st respondents and the petitioner which the 1st respondents referred to arbitration as per arbitration agreement in existence by and between the petitioner and the 1st respondents. The 1st respondents had appointed the 2nd respondent as their arbitrator and the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has declined to give his consent for enlargement of time for the arbitrators to make the award, the petitioner has put reliance on sections 28 and 46 of the Act as also on the case of Hari Krishna Wattal v. Vaikunth Nath Pandya AIR 1973 SC 2479. 5. Though the notice of the petition has been served upon all the respon- dents, respondents 2,3 and 4 are not appearing to oppose admission of the petition. Mr. Piarohit, the learned Advocate appears for the 1st respon- dents to oppose admission of the petition. Mr. Purohit submits that the rules, bye-laws and regulations of the Exchange are statutory and by reason of bye-laws 254 and 261 of the Bye-laws of the Exchange, the Governing Board or the President of the Exchange has the power to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the reference or after having 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 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 expired or not and whether the award has been made or not extended from time to time for making the award by the period not exceeding one month at a time from the due date or extended due date of the award." Under these bye-laws, the arbitrators are to make their award within four months after entering on the reference or after having been called upon to act by notice in writing from any party or withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trators under sub-section (2) of section 28 cannot enlarge the time to make the award. This position in law has been reiterated by the Supreme Court in the case of Hari Krishna Wattal ( supra ) on which reliance has been placed by the petitioner. In that case, the Supreme Court has observed: "... There is no doubt that the Arbitrator is expected to make his award within four months of his entering on the reference or on his being called upon to act or within such extended time as the Court may allow. Reading clause 3 of the Schedule along with section 28 one finds that the power to enlarge the time is vested in the Court and not in the Arbitrator. Clause 3 and section 28(1) exclude by necessary implication the power of the Arbitrator t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for making the award only in a case where after entering on the Arbitration the parties to the Arbitration agreement consent to such enlargement of time." (p. 2481) However, the question which still requires consideration is whether in view of rules and bye-laws of the Exchange being statutory, sub-section (2) of section 28 would apply to the facts of the present case, section 46 of the Act reads as under : 46. Application of Act to statutory arbitration - The provisions of this Act, except sub-section (1) of section 6 and sections 7,12,36 and 37, shall apply to every arbitration under any other enactment for the time being in force, as if the arbitration were pursuant to an arbitration agreement and as if that other enactment were a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have neither become functus officio nor have ceased to have the jurisdiction to arbitrate in the matter. The proceedings before the arbitrators have not become null and void. 8. Mr. Purohit informs this Court that the proceedings before the arbitra- tors have been completed and the arbitrators have just to make their award. The petitioner, as averred in the petition, also desires that the award be made at the earliest since restoration of his membership is dependent upon completion of pending arbitration proceedings against him. That being the position, it is in the interest of the petitioner that the arbitration proceedings instituted by the 1st respondents against the petitioner are completed at the earliest. 9. Since I find n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
