NIDHI VERMA Vs. PRABHUDAS LILLADHER PVT. LTD

JUDGEMENT

(1.) ADMIT . With the consent of learned Counsel for the Appellant and the Respondent, the appeal is taken up for final hearing. Counsel for the Respondent waives service.

(2.) THIS appeal arises from an order of a learned single Judge on a Petition under section 34 of the Arbitration and Conciliation Act, 1996 filed by the Respondent. The arbitral proceedings took place before an arbitral tribunal constituted by the National Stock Exchange. The Respondent is a Member of the National Stock Exchange who had entered into transactions on behalf of the Appellant. The claim of the Respondent was allowed by the arbitral tribunal in an Award dated 14 October 2009 in the sum of Rs.3,25,597/- on which interest was allowed at 12% per annum from 26 September 2008. There was a Counter Claim of the Appellant which was dismissed on the ground that it was barred by limitation. The dismissal of the Counter Claim was not challenged by the Appellant. However, the Respondent filed an Arbitration Petition under section 34 since the claim of the Respondent was allowed in the amount of Rs.3,25,597/- as against a claim of Rs.24,43,064/-. The learned single Judge while allowing the Arbitration Petition filed by the Respondent did so only on the ground that the rejection of the Counter Claim filed by the Appellant on the ground of limitation "needs to be considered in view of the latest circular whereby the period of limitation has been extended to 3 years instead of 6 months. " Hence, without expressing any opinion on merits, and keeping all points open, the Arbitration Petition which was filed by the Respondent has been allowed and the arbitral Award has been set aside only on the ground that rejection of the Counter Claim of the Appellant was not in order.

(3.) IN this view of the matter, we are of the view that the order passed by the learned single Judge setting aside the arbitral Award without going into the merits of challenge and keeping all the points open while remanding the proceedings back to the arbitral tribunal is totally unsustainable.