1 AP76809 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION NO.768 OF 2009 Sanjay Gupta ...Petitioner v/s Networth Stock Broking Ltd. ...Respondents Mr Rahul Karnik for Petitioner. Mr Dilip Rai i/b Ms Aruna Singh for Respondents. CORAM : D.K. DESHMUKH J. DATE : 25TH MARCH 2011. 2 AP76809 P.C. :- 1] By this petition, filed under section 34 of the Arbitration and Conciliation Act 1996, the petitioner challenges the award made in statutory arbitration under the bye-laws of the Bombay Stock Exchange. By that award, the learned Arbitrator has directed the petitioner to pay certain amount to the respondents. The only point urged before me was that the reference was not made within the period of limitation provided by bye-law No.242(2) of the Bye- laws of the Bombay Stock Exchange. On finding that the petitioner was liable to make payment for squaring of the transaction, the respondents started selling the stock belonging to the petitioner which was with the respondents. That was sold on 3rd March 2008, 7th March 2008 and 3rd April 2008. After selling the stock upto 3rd April 2008, still the amount remained due from the petitioner and the matter was referred to arbitration. The Arbitral Tribunal has held that the cause of action for making the reference arose on 3rd April 2008, when 3 AP76809 after conducting sale, it was found that still money is recoverable by the respondents from the petitioner. According to the petitioner, however, the cause of action did not accrue on 3rd April 2008. Though it was found that before 3rd April 2008 that money is payable by the petitioner to the respondents, the respondents had stock of the petitioner which they were entitled to dispose off to recover the money payable by the petitioner. They started disposing off the stock, it was disposed off till 3rd April 2008. The position became clear on 3rd April 2008 that after disposing off the stock, still certain amount is recoverable. Therefore, the cause of action arose on 3rd April 2008. The view taken by the Arbitral Tribunal is a possible view. It cannot be disturbed in the limited jurisdiction of this Court under section 34 of the said Act. Petition is disposed off. Parties to act on the copy of this order duly authenticated by the Associate / Private Secretary of this Court. 4 AP76809 Certified copy expedited. ( JUSTICE D.K. DESHMUKH )