Arbitration limitation under exchange regulations: a late reference was barred where no valid acknowledgment extended time.

An exchange regulation prescribing a three-month period for referring disputes to arbitration governed the limitation question, and the subordinate bye-laws could not override that prescription unless they were genuinely inconsistent with it. On the stated facts, the cause of action arose in 1996 but the arbitration reference was made only in February 1998, so it was outside time. The letter relied on as acknowledgment did not admit liability, and no other document within the limitation period extended time. The award therefore could not stand because the reference was time-barred.

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Issues: Whether the respondent's reference to arbitration was barred by limitation under the NSE Capital Market Trading Regulations and Bye-laws, and whether any subsequent correspondence extended the period by acknowledgment of liability.

Analysis: Regulation No. 5 prescribed a period of three months from the date the cause of action arose for referring a dispute to arbitration. The Bye-laws were subordinate to the Regulations only to the extent not inconsistent with them, and the relevant chapters of the Bye-laws did not displace the limitation prescribed by Regulation No. 5. On the facts, the cause of action had arisen in 1996, while the reference was made only in February 1998. The letter relied upon as acknowledgment did not contain an acknowledgment of liability, and no other document within the limitation period was shown to extend time.

Conclusion: The arbitration reference was time-barred and the petition succeeded.

Final Conclusion: The award could not stand because the dispute had been referred beyond the prescribed limitation period, and the petition was allowed.

Ratio Decidendi: Where the governing exchange regulation prescribes a specific limitation period for arbitration, the reference must be made within that period from accrual of the cause of action unless a valid acknowledgment of liability extends time; subordinate bye-laws cannot override the regulation absent a real inconsistency.

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