KALPANA MUNISH BUMB Vs. JOINDRE CAPITAL SERVICES LTD

JUDGEMENT

(1.) These three petitions are filed under Section 34 of the Arbitration & Conciliation Act, 1996 (For short Arbitration Act). Since the facts and submissions in all three petitions are identical, were heard together and are being disposed of by a common order.

(2.) It is not in dispute that the respondent is a trading member of the Stock Exchange. The Petitioner was a constituent of the respondent. A member client agreement has been entered into between the petitioner and respondent. It is not in dispute that the last transaction between the parties had taken place in the month of March, 2008. The dispute arose between the parties. The first respondent invoked arbitration clause as per Regulations framed by the Exchange. Statement of case was filed on 20 th December, 2010. Prior to the issuance of circular dated 11.10.2010, the bye-laws governing the period of limitation i.e. Regulation 252(2) of the Bombay Stock Exchange provides as under :

(3.) On 11 th August, 2010 the Securities and Exchange Board of India (Fort short 'SEBI") issued a circular in exercise of powers conferred on it under section 11 (1) of the Securities and exchange Board of India Act, 1992 read with Section 10 of the Securities Contracts (Regulation) Act, 1956 with a view to protect the interest of the investors in securities and to promote the development of, and to regulate the securities market and made it effective from 1 st September, 2010. Clause 1 of that circular provided that in consultation with the stock exchanges, it has been decided to streamline the arbitration mechanism available at stock exchanges for arbitration of disputes (claims, complaints, differences etc) arising between a client and a member (Stock Broker, Trading Member and Clearing Member) across various market segments. Clause 5 of the said regulation provided that the limitation period for filing an arbitration reference shall be governed by the law of limitation i.e. Limitation Act, 1963.