K JAYAKUMARAN NAIR Vs. VERTEX SECURITIES LTD

JUDGEMENT

(1.) This Civil Revision Petition is filed against the order passed by the 1st Additional Sub-Court, Ernakulam in I.A, No. 47 of 2004 in O.S. No. 283 of 2003. Revision petitioner is the defendant in the suit and the respondent is the plaintiff. The suit was filed for recovery of money. The plaintiff in the plaint contended that it is a member of National Stock Exchange, Cochin Stock Exchange and the Bombay Stock Exchange and the defendant was a client of the plaintiff and in the transaction, the plaint claim is due from the defendant.

(2.) The defendant filed a written statement. Subsequently, the Court framed Issues on 15-12-2003 and the plaintiff paid the balance Court-fee on 3-1 -2004. The suit was listed for trial on 28-10-2004. It was at this stage that I.A. No. 47 of 2004 was filed. In that application, it was stated by the petitioner to refer the dispute for arbitration to the authorities mentioned in the contract note.

(3.) The respondent filed objections to the application. The contention raised was that the conditions mentioned in Section 8 of the Arbitration Act (hereinafter referred to as "the Act") have not been complied with. It was further stated that as per the Bye-law, if any dispute arises, the matter should be referred to arbitration within' six months, from the raising of the dispute. The Court held that the period was over and hence, reference to arbitration is not possible. Thus, LA. No. 47 of 2004 was dismissed on the ground that the claim has become barred as per the bye-laws of the plaintiff. It is the above order that is challenged before this Court.