JUDGMENT - KARNIK D.G., J.:-This petition is filed under section 34 of the Arbitration and Conciliation Act, 1996 (for short the Arbitration Act) for setting aside the Appellate Award dated 4th July, 2003 passed by the Appellate Bench of the Stock Exchange, Mumbai.

2. The petitioner is a sub-broker affiliated to the respondent No. 2 who is a broker and member of the Stock Exchange, Mumbai. The respondent No. 1, who was the original claimant before the Arbitral Tribunal was a constituent of the petitioner and was dealing in purchase and sales of shares on the Stock Exchange, Mumbai through the petitioner.

3. The respondent No. 1 made the following claims against the petitioner:

(i) Rs. 3,47,500/- on account of non delivery of shares.

(ii) Rs. 4,30,500/- for non-payment of the sales proceeds of the shares sold.

(iii) Rs. 7000/- towards the dividend on the shares which were not delivered.

(iv) Rs. 30,000/- towards the badla charges.

(v) Rs. 85,000/- interest on the aforesaid amounts.

The afore mentioned claims were referred to arbitration under Bye law 248(C) of the Byelaws of the Stock Exchange, Mumbai. By an award dated 16th December, 2002 the learned Arbitrator passed an award against the petitioner allowing the claim of Rs. 3,47,500/- towards the non delivery of shares, Rs. 4,30,500/- towards the sale proceeds of the shares and Rs. 4,075/- towards the dividend. The claims for badla charges and the past interest were rejected. The claim against the respondent No. 2 who was the principal broker was also dismissed. Being aggrieved by the said Award, the petitioner filed an appeal before the Appeal Bench of the Stock Exchange, Mumbai under Bye-law 274-A, by an order dated 4th July, 2003 the Appeal Bench of the Stock Exchange, Mumbai dismissed the appeal and confirmed the Award. This order of the Appeal Bench is challenged in this petition which has been filed on 29th July, 2003.

4. Learned Counsel for the respondent No. 1 submitted that as the original Award was passed on 16th December, 2002, the petitioner should have filed an application for setting aside of the award under section 34 of the Arbitration Act within three months i.e. on or before 15th March, 2003. The Arbitration Act does not provide for an appeal against an award of an Arbitral Tribunal but, an Award can be challenged only under section 34 of the Arbitration act within a period of 3 months. Bye law No. 274-A which provides for an appeal to the Appeal Bench of the Stock Exchange, Mumbai is inconsistent with the provisions of the Arbitration Act and in particular section 34 thereof and therefore invalid. As the application for setting aside the award has not been filed within the statutory period of three months, and even within the additional period of one month which can be allowed by the Court under proviso to sub-section (3) of section 34 of the Arbitration Act, the petition is barred by limitation and is liable to be dismissed. Learned Counsel for the respondent No. 1 also supported the Award on merits.

5. Bye laws Nos. 248 to 281-D of the Bye laws of the Stock Exchange, Mumbai contain provisions relating to arbitration other than the disputes between the members. Under Bye law 248, all claims, differences and disputes between a member and a non member or non members arising out of or in relation to dealings, transactions and contracts made subject to the Rules, Bye-laws and Regulations of the Exchange or with reference to anything incidental thereto or in pursuance thereof or relating to their construction, fulfilment or validity or in relation to the rights, obligations and liabilities of remisiers, authorised clerks, sub-brokers, constituents, employees or any other persons with whom a member shares brokerage in relation to such dealings, transactions and contracts, shall be referred to and decided by arbitration as provided in the Rules, Bye-laws and Regulations of the Exchange. Bye-laws 249 and 250 provide for appointment of an Arbitral Tribunal. Bye law No. 251 p

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