TRADE

Definitions

'Arbitrator' shall mean a sole arbitrator or a panel of arbitrators. 'Act' shall mean the Arbitration and Conciliation Act, 1996 and includes any statutory modification, replacement or re-enactment thereof, for the time being in force.

1. Reference to Arbitration

All claims, differences or disputes between the Trading Members inter se and between Trading Members and Constituents arising out of or in relation to dealings, contracts and transactions made subject to the Bye-Laws, Rules and Regulations of the Exchange or with reference to anything incidental thereto or in pursuance thereof or relating to their validity, construction, interpretation, fulfillment or the rights, obligations and liabilities of the parties thereto and including any question of whether such dealings, transactions and contracts have been entered into or not shall be submitted to arbitration in accordance with the provisions of these Byelaws and Regulations.

2. Provisions of these Byelaws and Regulations deemed to form part of all dealings, contracts and transactions

In all dealings, contracts and transactions, which are made or deemed to be made subject to the Byelaws, Rules and Regulations of the Exchange, the provisions relating to arbitration as provided in these Byelaws and regulations and shall form and shall be deemed to form part of the dealings, contracts and transactions and the parties shall be deemed to have entered into an arbitration agreement in writing by which all claims, differences or disputes of the nature referred to in clause (1) above shall be submitted to arbitration as per the provisions of these byelaws and regulations.

3. Limitation period for reference of claims, differences or disputes for arbitration

All claims, differences or disputes referred to in clause(1) above shall be submitted to arbitration within six months from the date on which the claim, difference or dispute arose or shall be deemed to have arisen. The time taken in conciliation proceedings, if any, initiated and conducted as per the provisions of the Act and the time taken by the Relevant Authority to administratively resolve the claim, differences or disputes shall be excluded for the purpose of determining the period of six months.

4. Power of the Relevant Authority to prescribe Regulations

(a) The Relevant Authority may, from time to time prescribe Regulations for the following:

i) The procedure to be followed by the parties in arbitral proceedings In particular, and without prejudice to the generally of the foregoing power, such procedure may, inter alia, provide for the following:
(a) The forms to be used
(b) The fees to be paid
(c) The mode, manner and time period for submission of all pleadings by both the parties:
(d) Matters relating to requests from the parties for amending or supplementing the pleadings; and
(e) The consequences upon failure to submit such pleadings by the parties
ii) The procedure to be followed by the arbitrator in conducting the arbitral proceedings.
In particular, and without prejudice to the generality of the foregoing power, such procedure may, inter alia, provide for
(a) Adjournment of hearings; and
(b) Terms and conditions subject to which the arbitrator may appoint experts to report on specific issues and the procedure to be followed in arbitral proceedings upon such an appointment.
iii) Different set of arbitration procedures for different claims, differences or disputes after taking into consideration such circumstances and facts as the Relevant Authority may deem fit which circumstances and facts may include the value of the subject matter and the persons who are involved as parties to such claims, differences or disputes.
iv) Creation of seats of arbitration for different regions or prescribing geographical locations for conducting arbitrations and prescribing the courts which shall have jurisdiction for the purpose of the Act.
v) The claims, differences or disputes which may be referred to a sole arbitrator and the claims, differences, or disputes which may be referred to a panel of arbitrators.
vi) The procedure for selection of persons eligible to act as arbitrators.
vii) The procedure for appointment of arbitrator
viii) The terms, conditions and qualifications subject to which any arbitrator may be appointed.
ix) Determination of the number of arbitrators in the case of a panel of arbitrators
x) The time period within which a substitute arbitrator has to be appointed in case the office of the arbitrator falls vacant for any reason whatsoever.
xi) The matters to be disclosed by any person who is approached in connection with his possible appointment as an arbitrator.
xii) The procedure to be adopted by the parties for challenging an arbitrator.
xiii) (a) The claims, differences or disputes which, may be decided by the arbitrator without a hearing unless either party in writing requests the Relevant Authority for a hearing and the time period within which such a request shall be made.
(b) The claims, differences or disputes which, may be decided by the arbitrator only by hearing the parties unless both the parties jointly waive the right to such hearing and the time period within which such a waiver shall be made.
xiv) The place of arbitration for each reference and the places where the arbitrator can meet for consultation, for hearing witnesses, experts, or the parties, or for inspection of documents, goods or other property.
xv) The making of the arbitral award including the manner in which a decision is to be taken in the case of panel of arbitrators and the form and contents of the arbitral award. The term arbitral award shall also include an arbitral award on agreed terms. Prescriptions as to the contents of the arbitral award may include provisions for costs and where the arbitral award is for the payment of money, may include interest payable on principal sum due.
xvi) The amount of deposit or supplementary deposit, as the case may be, as an advance for the costs which it expects will be incurred in respect of the claim, diference or dispute. Provided where a counter-claim is submitted to the arbitrator, a separate amount of deposit for the counter-claim may also be prescribed.
xvii) The administrative assistance which the Exchange may render in order to facilitate the conduct of arbitral proceedings.
xviii) All matters regarding the mode and the manner of service of notices and communications by the parties including communication addressed to arbitrator. xix) Any other matter which in the opinion of the Relevant Authority is required to be dealt with in the Regulations to facilitate arbitration.
(b) The relevant authority from time to time may amend, modify, alter, repeal or add to the provisions of the Regulations.

5. Disclosure by persons to be appointed as arbitrators

Every person who is approached in connection with his possible appointment as an arbitrator, shall disclose to the Relevant Authority in writing any circumstances likely to give rise to justifiable doubts as to his independence and impartiality. If the person discloses any circumstances which in the opinion of the Relevant Authority are likely to give rise to justifiable doubts as to his independence and impartiality, then he shall not be appointed as an arbitrator.

6. Disclosure by persons appointed as arbitrators

An arbitrator, from time to time of his appointment and throughout the arbitral proceedings, shall without delay disclose to the Relevant Authority in writing any circumstances referred to in clause(5) above which have come to his knowledge after his appointment as an arbitrator.

7. Termination of mandate of the arbitrator The mandate of the arbitrator shall terminate if

(a) The arbitrator withdraws from office for any reason; or
(b) In the opinion of the Relevant Authority, the arbitrator becomes de jure or de facto unable to perform his functions or for other reasons fails to act without undue delay including failure to make the arbitral award within the time period prescribed by the Relevant Authority. Such a decision of the Relevant Authority shall be final and binding on the parties; or
(c) The mandate of the arbitrator is terminated by the Relevant Authority upon receipt of written request for the termination of the mandate of the arbitrator from both the parties to arbitration; or
(d) The arbitrator discloses any circumstances referred to in clauses (5) and (6) which in the opinion of the Relevant Authority are likely to give rise to justifiable doubts as to his independence and impartiality.
(e) The arbitral proceedings are terminated as provided for herein.

8. Supplying of vacancy to the office of the arbitrator

At any time before the making of the arbitral award should the office of the arbitrator fall vacant for any reason whatsoever including any vacancy due to the illness or death of the arbitrator or termination of the mandate of the arbitrator by the Relevant Authority or otherwise, the vacancy shall be supplied by the Relevant Authority by following the same procedure as specified by it for appointment of the arbitrator.

9. Consideration of recorded proceedings and evidence

Unless otherwise agreed by parties, any arbitrator who has been appointed by the Relevant Authority to supply a vacancy to the office of the arbitrator, may repeat any hearings previously held.

10. Order or ruling of previous arbitrator not invalid

An order or ruling of the arbitrator made prior to the termination of his mandate shall not be invalid solely because his mandate has been terminated. Provided that when the termination has been effected to pursuant to clause (7)(I)(d), the order or ruling of the arbitrator made prior to termination of his mandate shall become invalid unless otherwise agreed upon by the parties.

11. Interim arbitral award and interim measures ordered by the arbitrator

The arbitrator may be empowered to make an interim arbitral award as well as to provide interim measures of protection. An arbitrator may require a party to provide appropriate security in connection with an interim measure.

12. Appearance in arbitral proceedings by counsel, attorney or advocate

In arbitral proceedings where both the parties are Trading Members, the parties shall not be permitted to appear by counsel, attorney or advocate but where one of the parties is a Constituent, the the Constituent shall be permitted to appear by counsel, attorney or advocate. If the Constituent chooses to appear by counsel, attorney or advocate, then the Trading Member shall be granted a similar privilege.

13. Arbitral award by arbitrator

The arbitrator shall make the arbitral award within one month from the date of entering upon the reference and the time to make the award may be extended from time to time by the Relevant Authority on an application by either of the parties or the arbitrator as the case might be. For the purpose of this clause the arbitrator shall be deemed to have entered upon a reference on the date on which the arbitrator has or is deemed to have applied his mind.

14. Arbitration proceedings subject to the provisions of the act

The arbitration proceedings as provided for by the provisions of these Byelaws and Regulations shall be subject to the provisions of the Act to the extent not provided for in these Byelaws or the Regulations.

15. Construction of references

For the purposes of section 2(6) of the Act, in all claims, differences or disputes which are required to be submitted to arbitration as per the provisions of these Byelaws and the Regulations, wherever Part 1 of the Act leaves the parties free to determine a certain issue, the parties shall be deemed to have authorised the Relevant Authority to determine that issue.

16. Administrative assistance

For the purpose of section 6 of the Act, in all claims, differences or disputes which are required to be submitted to arbitration as per the provisions of these Byelaws and Regulations, the parties shall be deemed to have arranged for administrative assistance of the Relevant Authority in order to facilitate the conduct of the arbitral proceedings.

17. Jurisdiction

All parties to a reference to arbitration under these Byelaws and Regulations and the persons, if any, claiming under them, shall be deemed to have submitted to the exclusive jurisdiction of the courts in Mumbai or any other court as may be prescribed by the Relevant Authority for the purpose of giving effect to the provisions of the Act.