Laws - The NSDL Byelaws

NSDL -BYELAWS -2000 CH-14

14. ARBITRATION

14.1. CLAIMS, DIFFERENCE AND DISPUTES BETWEEN PARTICIPANTS INTER SE AND BETWEEN PARTICIPANTS AND CLIENTS

14.1.1. All claims, differences and disputes between Participants inter se and between Participants and Clients arising out of or in relation to dealings on the Depository including any agreements, contracts and transactions made subject to the Bye Laws and the Business Rules of the Depository 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, agreements and contracts have been entered into or not, shall be referred to arbitration in accordance to and subject to the provisions of the Arbitration and Conciliation Act, 1996, and this Chapter.

14.1.2. In all dealings, transactions, agreements and contracts which are made subject to the Bye Laws and the Business Rules of the Depository, the provisions relating to arbitration as provided in the Arbitration and Conciliation Act, 1996, and this Chapter shall form a part of such dealings, transactions, agreements and contracts and the parties shall be deemed to have entered into an arbitration agreement by which all claims, differences and disputes of the nature referred to in Bye Law 14.1.1 above shall be submitted to and decided by arbitration as per the provisions of the Arbitration and Conciliation Act, 1996 and this Chapter.

14.1.3. In all claims, differences and disputes between Participants inter se and between Participants and Clients, a sole arbitrator shall be appointed by the Executive Committee of the Depository from a panel of arbitrators constituted from time to time by the Executive Committee. The panel of arbitrators shall consist of such persons as the Executive Committee may in its discretion determine from time to time. The procedure to be followed in such an arbitration shall be as provided for in the Arbitration and the Conciliation Act, 1996.

14.1.4. In the case of a claim, difference or dispute between the Participant and the Client, neither party shall appear in arbitration proceedings through an advocate, counsel or attorney or authorised representative unless otherwise mutually agreed upon by the parties.

14.2. CLAIMS, DIFFERENCES, DISPUTES WHERE THE DEPOSITORY IS A PARTY

14.2.1. All claims, differences and disputes between the Depository and the Participant or the Depository and the Issuer or the Depository and the Clearing Corporation, arising out of or in relation to dealings on the Depository including any agreements, contracts and transactions made subject to the Bye Laws and Business Rules of the Depository 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, agreements and contracts have been entered into or not, shall be referred to arbitration in accordance to and subject to the provisions of the Arbitration and Conciliation Act, 1996 and this Chapter.

14.2.2. In all claims, differences and disputes involving the Depository as one of the parties, the Depository and the other party shall each appoint one arbitrator and the two arbitrators so appointed by them shall in turn appoint a third arbitrator who shall act as the presiding arbitrator. In case the two arbitrators fail to agree upon the appointment of the third arbitrator, the third arbitrator shall be appointed in accordance to the provisions of the Arbitration and Conciliation Act, 1996.

14.3. GENERAL PROVISIONS APPLICABLE TO ALL ARBITRATIONS AS PROVIDED FOR IN THIS CHAPTER

14.3.1. For all claims, disputes and differences which are required by the provisions of this Chapter to be submitted for arbitration, irrespective of the parties involved in such claims, disputes and differences, the place of arbitration shall be at Mumbai only unless otherwise mutually agreed upon by the parties.

14.3.2. The arbitrator may adjourn the hearings from time to time upon an application made by either or both the parties or at his own instance; provided however that when the adjournment is granted at the request of one party to the reference, the arbitrator, may if deemed fit, require such party to pay the fees and costs in respect of the adjourned hearing borne by the other party and in the event of such party failing to do so may deal with the matter in such manner as he may deem fit.

14.3.3. The language to be used in arbitral proceedings shall be English unless otherwise agreed upon by the parties.

14.3.4. The arbitral award shall be written in English language.

Bye Laws (as amended upto January 31, 2000).