KRISHNA MOORTHY, J.

( 1 ) THIS appeal arises out of an order rejecting an application under S. 34 of the Arbitration Act by the Company Law Board. The first respondent in the appeal is an Indian Company by name Insotex (India) Ltd.

( 2 ) THE first respondent filed an application before the Company Law Board under S. 111 of the Companies Act alleging that they purchased 13,600 shares of the second respondent company from the appellant which is a German Company and a non-resident company, under an agreement between them dt. 1-9-1989 for a total consideration of Rs. 13,60,000/ -. The first respondent Insotex (India) Limited duly lodged transfer Instruments together with share certificates with the second respondent company on 4-9-1989. Since the transaction involved transfer of share by a non-resident company, permission of the Reserve Bank of India was obtained subject to certain terms and conditions stipulated by the Reserve Bank of India. The time granted by the Reserve Bank of India was extended from time to time up to 5-9-1989. According to the first respondent Insotex (India) Limited, they also handed over to the appellant a cheque dt. 4-9-1989 for the consideration amount and a

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