SABA CHEMICALS Vs. SIDDHARTHA BHATTACHARYA

JUDGEMENT

(1.) By these five petitions, the petitioners have impugned the arbitral award in Arbitration Petition No. 396 of 2013 dated 8th December, 2012, in Arbitration Petition Nos. 395 of 2013, 400 of 2013 and 401 of 2013, all dated 15th December, 2012 and in Arbitration Petition No. 397 of 2013 dated 8th December, 2012, passed by the learned arbitrator respectively under section 34 of the Arbitration and Conciliation Act, 1996 (for short the said 'Arbitration Act'). Some of the relevant facts for the purpose of deciding these petitions are as under:-

(2.) Since the facts and issues involved in all the aforesaid petitions are identical, the learned counsel appearing for the parties have addressed this court in Arbitration Petition No. 396 of 2013 and have agreed that the reasons to be recorded by this court in the said arbitration petition would also apply to the other four petitions and separate reasons in those four petitions need not be recorded. All the five petitions are thus disposed of by a common judgment. The petitioners herein were the original respondents in the arbitral proceedings whereas the respondent no. 1 who is liquidator of the Memon Co-operative Bank Ltd. was the original claimant.

(3.) The Memon Co-operative Bank Ltd. is registered under the provisions of the Multi State Co-operative Societies Act, 2002 (hereinafter referred to as the said Act of 2002). Sometimes in the year 1999, the petitioner no. 1 firm had made an application for loan facility of Rs. 15,00,000/-. The other petitioners and respondent no. 2 stood as guarantors for the petitioner no. 1. In the year 1999, the said bank advanced loan facility to the extent of Rs. 15 lacs to the petitioner no. 1 against equitable mortgage of property i.e. Plot No. C1-B, admeasuring 704 square meters together with building/structure thereon situated at 3415 GIDC Estate, Ankleshwar, District Bharuch and against hypothecation of machineries. The petitioners and respondent no. 2 signed various documents in favour of the said bank.