Bombay Stock Exchange – Arbitral Tribunal – Award for Share Trading Dues

The petitioner is a company engaged in social and charitable activities in public and rural healthcare.   The respondent is the corporate member – brother of Bombay Stock Exchange since 1997.  The petitioner had trading account with the respondent.

After 13.1.2006, the petitioner made several transactions through respondent no.1.   However, on review of account it was found that certain amount was due and payable by the petitioner.   The petitioner made only part payment.

However, in the second review of accounts, it was found that the petitioner was liable to pay Rs.30,28,565.61 ps and demand letter was issued.  However, the petitioner did not make any payment.

The respondent no.1 made arbitration reference on 20.10.2006.

The petitioner filed the written statement with counter claim of Rs.46,06,547.25 ps.  However, nowhere the petitioner raised any challenge to the constitution of Arbitral Tribunal or denial of hearing.  There was no application and objection to the constitution of Arbitral Tribunal.

By the Arbitral Award dated 27.3.2008, the claim of the respondent no.1 was allowed and the counter claim of the petitioner was rejected.

HELD that where a party does not raise a plea of jurisdiction before the Arbitral Tribunal, then such plea is deemed to have been waived in view of the provisions of Sections 4 and 16 of the Act and in consequence, cannot be raised for the first time in the proceedings under section 34 of the Act.

The Arbitral Tribunal found that the counter claim could not be entertained simply on the basis that it pertained to transactions on the NSEL, which dispute was outside the scope and ambit of the BSE.

Judgment dated 2.12.2025 of the High Court of Bombay in Arbitration Petition No.1634 of 2014 (OS) of MPD Associates Pvt Ltd   Vs.  Angel Broking Ltd and other