HCG STOCK & SHARE BROKERS LIMITED versus GAGGAR SURESH

Citation: [2006] SUPP. 10 S.C.R. 408 · Decided: 08-12-2006 · Supreme Court of India · Bench: G.P. MATHUR · Disposal: Dismissed
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Judgment (excerpt)

A 
B 
HCG STOCK & SHARE BROKERS LIMITED 
v. 
GAGGAR SURESH 
DECEMBER 8, 2006 
[G.P. MA THUR AND A.K. MA THUR, JJ.] 
Limitation-Arbitration proceedings-Objection that claim time 
barred-Sustainability of-Held: As per the Bye-laws the claim was to be 
C submitted to arbitration within six months from the date on which dispute 
arose-Dispute arose much earlier and the complaint was filed after two 
years from the last date for filing complaint-Thus, complaint hopelessly time 
barred-Order of courts b~low upheld-Bye-laws of National Stock Exchange 
of India Limited 
D 
Appellant used to carry out transaction on behalf of the respondent. 
Certain amount became due to the appellant from the respondent towards 
the trade and transaction. Appellant made a Claim before the Arbitral 
Tribunal. Respondent raised an objection that the claim was barred by 
limitation as per the Bye-laws of National Stock Exchange of India 
Limited. Appellant contended that the cause of action arose when it filed 
E a complaint with the Economic Offences Wing on 21.03.2003. Arbitral 
Tribunal upheld the objection of the respondent and rejected the 
appellant's claim. Both the Single Judge and the Division Bench of the High 
Court upheld the order of the Arbitral Tribunal. Hence the present appeal. 
F 
Dismissing the appeals, the Court 
HELD: As per the Bye-laws of National Stock Exchange of India Limited, 
all claims, differences or disputes referred therein were to be submitted to 
arbitration within six months from the date on which dispute arose. In the 
instant case, the time started running from the date on which the dispute has 
G arisen. The last date on which the appellant carried out a transaction on behalf 
of the respondent was 1.7.1999. On the basis of the letter dated 8.2.2001, 
appellant called upon the respondent to clear up the outstanding dues on or 
before 16.2.2001. Then by another letter the appellant again called upon the 
respondent to clear the outstanding dues before 19.3.2001. Reference to this 
H 
408 
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HCG STOCK& SHARE BROKERS LIMITED v. GAGGAR SURESH [A.K. MATHUR, J.] 409 
communication leaves no manner of doubt that the dispute has already arisen A 
on 8.02.2001 and the last date for resolving the dispute was 19.3.2001. 
Therefore, even ifthe last cut off date is taken as 19.3.2001 then too the last 
date for filing the complaint would be September, 2001. In fact, the complaint 
was filed in September 2003. Therefore, the complaint was hopelessly barred 
by time. Thus, the view taken by the Arbitral Tribunal as upheld by the Single B 
Judge and the Division Bench of High Court calls for no interference. 
(411-A-C; 411-E-H; 412-A) 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5669 of2006. 
From the final Judgment and Order dated 2.12.2004 of the High Court C 
of Judicature at Bombay in Appeal No. 738/2004 in Arbitration Petition No.112/ 
2004. 
P.H. Parekh, Suneel Goel and Diksha Rai (for Mis. P.H. Parekh & Co.) 
for the Appellant. 
D.P. Singh and Sanjay Jain for the Respondent. 
The Judgment of the Court was delivered by 
A.K. MA THUR, J. Leave granted. 
Both these appeals involve similar question of law therefore, they are 
disposed of by this common order. For convenient disposal of both these 
appeals, the facts given in Civil Appeal arising out of S.L.P.(c) No.6963 of 
2005 are taken up for consideration. 
D 
E 
This appeal is directed against the order passed by the Division Bench p 
of the Bombay High Court in Appeal No.738 of2004 on 2.12.2004 whereby 
the Division Bench of the High Court has affirmed the order of learned 
Single Judge. Learned Single Judge in turn has affirmed the order of the 
Arbitral Tribunal whereby the Arbitral Tribunal has upheld the objection of 
the respondent that the claim raised by the appellant is barred by limitation 
as per Bye-laws of the National Stock Exchange of India Limited. 
G 
A claim was made by M/s. HCG Stock and Share Brokers Limited 
(hereinafter to be referred to as the "appellant") before the Arbitral Tribunal 
.· and it was contested by the present respondent on the ground of limitation. 
The Arbitral Tribunal framed preliminary issue on limitation and held that the H 
claim was barred by time and accordingly rejected the appellant's claim. 
410 
SUPREME COURT REPORTS (2006] SUPP. IO S.C.R. 
A Aggrieved against that order the appellant filed an arbitration petition before 
learned Single Judge of the High Court of Bombay. Learned Single Judge 
upheld the order of
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