AMAR CHAND SEHGAL Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) Mr. Harish Behl, learned counsel for respondent No.5 has placed on record order dated 1.9.2010, passed by Joint Registrar, Cooperative Societies, Shimla, titled as Sh. K.K. Kapoor v. The Mandi Urban Cooperative Bank Ltd; Mandi, H.P. It is quite apparent that award dated 14.11.2005, passed by the Arbitrator in Arbitration Case No.5 of 2005, titled as Mandi Urban Cooperative Bank Ltd. versus Shri Amar Chand Sehgal and others qua the private respondent No.5 Sh. K.K. Kapoor has been set aside.

(2.) Facts are not much in dispute. Petitioner Sh. Amar Chand Sehgal availed benefits of Cash Credit Limit from respondent No.4-bank. Sh. K.K. Kapoor respondent No.5 and Smt. Manoranjana Sehgal respondent No.6 stood guarantors. Persistent default in discharging the contractual obligations on the part of the petitioner resulted into non payment of a sum of Rs. 15,73,112.10 as on 22.12.2004. Since the amount was not paid, in spite of several demands made by the respondent-bank, arbitration proceedings, in accordance with the statutory rules/contractual obligations, were initiated.

(3.) In Arbitration Case No.5 of 2005, Sh. M.R. Sharma, (Ret. ARCS), Mandi, H.P., who was appointed as Arbitrator, after adjudicating the disputes passed final award dated 14.11.2005. The same was assailed by the petitioner before the Appellate Authority, primarily on the ground that opportunity for one time settlement was not afforded to him. His appeal was, however, rejected vide order dated 26.5.2006 (Annexure P-1). Petitioner preferred revision petition before the Joint Registrar (Credit Cooperative Societies) which stands dismissed in terms of impugned order dated 3.6.2008 (Annexure P-5). Impugned order reveals that all along, petitioner was requesting for one time settlement, in accordance with the Scheme of the respondent-Bank.