BHUWALKA Vs. BALJIT SECURITIES LIMITED

JUDGEMENT

(1.) This is an application to set aside an award made under the Arbitration and Conciliation Act, 1996. It was made in Mumbai on 28th May, 2001 by the Arbitral Tribunal comprising of three arbitrators. It was constituted under the Rules, By-laws and Regulations of the Mumbai Stock Exchange. Although, an arbitral award is under challenge, this Court cannot straight away go into the merits of the award. The jurisdiction of this Court to try this application is challenged. The point has to be decided. This arbitration took place without the intervention of the Court. An execution application was taken out by the respondent-award holder in this Court, but subsequently withdrawn. At the date of consideration of this application, there is no other application pending in this Court.

(2.) If one goes by the framing of the parties and the cause of action, on the face of it, this Court appears to have jurisdiction to entertain this application. This is so because the respondent is within jurisdiction. But, the respondent relies on Regulation 226C of the Rules, By-laws and Regulations of Mumbai Stock Exchange. It is in the following terms:

(3.) The preliminary submission of the learned Counsel for the petitioner is that although they entered into a contract for sale and purchase of shares with the respondent, they did not agree with them to be bound by the regulations of the Mumbai Stock Exchange. Consequently, neither the arbitration clause nor the forum selection clause applies.