NSE arbitration proceedings

 To start with , the Agreement is binding on such contracting non members dealing with members of the association.

The stipulated period set by the paries i.e six months is not taken place which resluted in Frustration of contract which does not effect the contract.

The only solution here is to extinguish the original contract by the substituted one which breaks the original contract.

The agreement cannot survive independentlyand therefore any further dispute becomes arbitrable(Repudiation,Frustration,Breach)

i agree with adv.meenakshi.

further try to catch up any person on the panel of arbitrators of NSE.. that will be better.

In your case time is not the essence of the contract.  You can raise the matter of arbitration even after 6 months because there is no prohibition that you should not seek arbitration after 6 months ( i.e, there is no negative covenant that after 6 months arbitration cannot be sought).  Hence in my opinion there is no delay or bar of limitation to seek arbitration or file a civil suit.

If you do not want to go to civil court then better you take the benefit of the clause wherein it is mentioned at in the even of reasonable cause shown the period of 6 months for approaching to the arbitrator can be condoned. so move fast in this derection.

Shreya

in  your case since 6months have elapsed  and is barred by limitation , and any reasonable cause to be shown ought to have been shown in the 6 months from the dispute arose  and the same is specifically mention in the chapter XI of the NSE byelaws , and one cannot take the stand on th limitaion act aenunciates 3 yrs  to file a suit ,  the NSe byelaws overrule the limitation act in cases related wherein the mater  needs tobe decided on limitation .

remember contract notes form the arbitration agreement or and arbitration clause within the meaning of the arbitration and reconcilation act .

hope this answeres your query

regards

 Rghavendra

dear shreya, practising into Securities Law since years i could suggest u follwoing:

1. 6 month period is calculated from the date of last transaction in trading account or from the date of dispute.

2. therefore, in case 6 months are lapse from the date of last trades you can still tried to succedd in other way that is dispute has arisen.

3. for example a client did last trades in 31/03/2009. and debit is running. but he objected to pay his dues in month of november (7 months later). that mean dispute is deemed to arisen in november and limitation period will be counted from november month.

4. Recet SEBI circular has come up with the amendment that limitation period should be counted from the date of end of th quarter when the last trades was done or dispute is arised. eg. date of last trades or dispue is 01/04/2009 than limitation will be calculated from 31/07/2009 that is end of the quarter.  case no: 2009 (3) arb. LR 494 (DEL)

but this is not yet amended in bye laws.

5. there is judgement given by Delhi High Court that limitation period memtione by NSE BYE Law is void and limitation us taken as per limitation act that is 3 years.

I agree with Simi , please refer the circular MRD/DSA/SE/CIR-18/2009,  dated 02/12/2009

Simi delhi hightcourt case that you are referring need not be binding  , these are special circumsatnces , however 6 months generally is taken

I agree with advocate simi

I am of the opinion that 6 months period does not prevent filing of arbitration proceedings against the client. The arbitrators have ample powers like the civil court to condone any delay properly explained. For explaining the delay all the correspondences and other initiatives taken to resolve the dispute my be placed before the arbitrator for his consideration.

 I have reported a matter to SEBI, NSE, Economic offence wing and the DCP West regarding a case where i have been cheated by the Broker by means of fraud committed by - illegal trading, cheating, forgery and creation and suppling of false documents causing loss of entire stocks in my account. I want to take my case of NSE arbiteration but i am shocked to see the awards by the pannel of the arbitrators in NSE. I have seen all the arbitrators awards on website in 2007, 2008, 2009 and 2010. It appears that the the arbitration pannel is sitting to award the judgements in favour of the Brokers. In all the judgements it is seen that majority of the investors are complaining of the illegal trading but i have never came across a single matter in which the amount is awarded to the investor. Investors once bitten by the award has never reverted back to NSE Arbitration. On the contrary the brokers have repeatedly complaint against the investors in the arbitration as they always get the award in their favour. Very rare instance are there where investors win. It is also observed that the award is also given on the basis of asumptions and not concrete proof and that too in favour of Broker. I know despite of having many solid concrete proofs i am sure that it would be difficult to win a case here and due to arbitration clause i can not avoid arbitration also. Now i understand why every broker puts the arbitration clause in the agreement. My case strengthens only when it is established that i was given fradulent documents in order to hide the facts from me and arbitration is not empowered to see the criminal offence involved in it. Despite of the fraud and forgery i have not been able to lodge a criminal FIR in police or EOW till date and they say it is to be investigated by SEBI and SEBI has marked it to NSE who say that we can only see the following of the guidelines and not the Fraud or cheating that has to be addressed to Police. I have not got a proper reply even by the RTI. I am being thrown into a vicious circle where no one feels themself accountable. Can anyone Guide / help me in this context. Sachin 9810933322

Can you guide me in the following case: