UMA SHANKAR GOENKA, H.U.F. AND ORS. Vs. R. SARAOGI AND COMPANY AND ANOTHER
LAWS(CAL)-1996-1-40
HIGH COURT OF CALCUTTA
Decided on January 12,1996

UMA SHANKAR GOENKA, H.U.F. AND ORS. Appellant
VERSUS
R. SARAOGI AND COMPANY AND ANOTHER Respondents




JUDGEMENT

Shyamal Kumar Sen, J. - (1.)There are two applications : One, by Uma Shankar Goenka, H.U.F. for supersession of the reference on the ground that there is no arbitration agreement at all between Uma Shankar Goenka, H.U.F. and R. Saraogi and Company. There is also another application by the Calcutta Stock Exchange Association Ltd. for modification and/or variation of order dated 22nd Dec., 1993 because within the time limit mentioned in the order dated 22nd Dec., 1993, it was not possible for the Calcutta Stock Exchange Association Ltd. to form a new Arbitration Sub-Committee consisting of members other than those who passed the earlier Award and complete the Arbitration proceedings. In view of the various guidelines issued by the Security and Exchange Board of India (SEBI). The Calcutta Stock Exchange Association Ltd. mentioned the matter on 29th April, 1994 and prayed for modification and/or variation of order dated 22nd Dec., 1993. However, it was directed that the Association should make a formal application, Accordingly the instant application for modification has been made by a petition verified by an affidavit affirmed by Pravat Kr. Dey on 10th June, 1994 for modification and/or variation of the order dated 22nd Dec., 1993 in the manner mentioned in paragraph 13 thereof. The operative portion of the said order dated 22nd Dec., 1993 is set out :
"In that view of the matter it is ordered that the award filed in this proceeding stands quashed and set aside. Let the Arbitration sub-committee consisting of members other than those who have heard the matter on the earlier occasion be constituted by the Calcutta Stock Exchange Association Ltd. within two weeks from date. The newly constituted Sub- Committee will hear parties on the basis of the documents already filed. It will be open, however, to the parties to file any fresh documents if they are so advised. Such documents are to be filed within two weeks after notice is received by the parties regarding the constitution of such Sub-Committee. Such Sub-Committee will be constituted by 15th Jan., 1994. Such documents will be filed by 31st Jan., 1994 and the hearing of the disputes will commence from 7th Feb., 1994. If necessary, day to-day hearing will be taken and the proceedings will be concluded by 30th June, 1994.

In the event of any adjournment is granted, the next date will be intimated to the parties on the very sitting of Arbitration itself.

The application is thus disposed of.

Costs cost in the arbitration proceedings. All parties are to act on a signed copy of the minutes of the order on the ususal undertaking."

(2.)Uma Sankar Goenka H.U.F. opposed the application of the Calcutta Stock Exchange Association Ltd. and also made an application for supersession of the reference on the ground that there is not arbitration agreement at all between Uma Shankar Goenka, H.O.F. and R. Saraogi and Company.
(3.)Following grounds have been taken in support of the contention by Uma Shankar Goenka in both the applications :
1. The Calcutta Stock Exchange Association Ltd. cannot make the application for modification and/or variation of the order dated 22nd Dec., 1993 in view of the fact that the Calcutta Stock Exchange Association Ltd. is in no way connected with dispute between itself and R. Saraogi and Company. From the said application it is evident that the Calcutta Stock Exchange Association Ltd. is taking the side of R. Saraogi and Company.

2. The application made by the Calcutta Stock Exchange Association Ltd., is not maintainable in law in view of the fact that for enlarging the time to make the award, an application under Sec. 28 of the Arbitration Act has to be made.

3. The Calcutta Stock Exchange Association Ltd. cannot hold any arbitration because under Chapter XVI of the Bye-Laws and Regulations of the Calcutta Stock Exchange Association Ltd., only a claim between a member and a non-member can be referred to the arbitration of the Calcutta Stock Exchange Association Ltd. A non-member is a person who shares brokerage with another member. Since Uma Shankar Goenka, H.U.F. does not share any brokerage with R. Saraogi and Company, who is a member of the Calcutta Stock Exchange, the alleged dispute between Uma Shankar Goenka, H.U.F. and R. Saraogi & Company cannot be referred to the arbitration of the Calcutta Stock Exchange Association Ltd. In fact, there is no dispute between Uma Shankar Goenka, H.U.F. and R. Saraogi and Company.

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