MUKESH GARG Vs. O.J. FINANCIAL SERVICES LTD

JUDGEMENT

(1.) THE appellant has challenged the order passed by the learned Additional District Judge whereby his petition under Section 34 of the Arbitration and Conciliation Act, 1996 has been dismissed.

(2.) THE appellant conducted transactions of sale/purchase of shares through respondent No.1 from 1998 up to 30th October, 2000. Respondent No.1 is a member of National Stock Exchange (Respondent No.2). According to the appellant, respondent No.1 committed irregularities of nondelivery of shares, wrong credit of share transactions, nontransfer of shares in D -MAT account of the appellant due to which the appellant suffered loss to the tune of Rs.4,85,547.65.

(3.) THE appellant submitted the arbitration application to National Stock Exchange claiming Rs.4,85,547.65 from respondent No.1 whereupon the National Stock Exchange vide letter dated 25th March, 2004 appointed Justice R.P. Gupta (Retd.) as Sole Arbitrator. The Arbitrator passed an award dated 7th June, 2004 dismissing the claim of the appellant as time barred under Bye law -3 of Chapter XI of the National Stock Exchange of India Limited. The findings of the learned Arbitrator are reproduced hereunder: - As per Bye laws of NSEIL pertaining to arbitration, prescribed in Chapter II, Clause No.3 prescribes a period of six months for seeking arbitration, from the date on which the claim, difference or dispute arose or is deemed to have arisen. The time taken in conciliation proceedings initiated and conducted as per the provisions of the Act and the time taken by the relevant authority to administratively resolve the claim, differences or disputes shall be extended for the purpose of determination the period of six months. It is thus apparent that the claimant has approached the NSEIL for arbitration much after the expiry of six months after the dispute arose or after his claims arose. This arbitration petition is therefore, rejected as barred by time.