INDIA INFOLINE LIMITED Vs. SHYAMLAL DAULATRAM VACHHANI

JUDGEMENT

(1.) The Petitioner has invoked Section 34 of the Arbitration and Conciliation Act, 1996 (for short the Arbitration Act, 1996) and thereby challenge is made to the award dated 22 September 2009 passed by the Arbitral Tribunal constituted under the Rules, Bye laws and Regulations of Bombay Stock Exchange Ltd. (for short, BSE).

(2.) By the impugned award the learned Arbitral Tribunal rejected the claim of the Petitioner solely on the ground of limitation in view of the then existing provisions i.e. bye laws 252(2) of the Rules and Regulations of the BSE when the time period was of six months from the date of cause of action. The learned counsel appearing for the Petitioner has pointed out circulars dated 11 August 2010 and 9 February 2011. These circulars are issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 (SEBI Act) read with Section 10 of the Securities Contracts (Regulation) Act, 1956, with a view to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and come into effect immediately.

(3.) By this, the SEBI has intended to change the mechanism of settling the dispute instead of six months to three years by extending the provisions of limitation Act 1963 which are available in normal transactions. The relevant clause is as under: