1 Both the Petitioners have invoked Section 34 of the Arbitration and Conciliation Act, 1996 (for short, the Arbitration Act) and thereby challenged the undated common award. The operative part of the same is as under:

“AWARD

The claim is allowed as follows:

The claimants are entitled to recover Rs. 20,74,359.19 from the Respondent Nos. 1 and 3 to 11 jointly and/or severally together with interest on the above said amount at the rate of 17.5% p.a. from the date of recovery Suit i.e. 20.06.1992 till 18.2.2003 and also further interest at the rate of 14% p.a. (simple mode) from 19.02.2003 till full recovery of the claim is allowed and also Rs.15,000/towards cost of administrative charges.”

2 The Claim Petitions were filed by Respondent No.1 (Original Claimant) against the borrower alleged guarantors, Respondent No. 12 Official Assignee, also made party, as Original Respondent No.1 was declared insolvent. The proprietor expired long back. Respondent Nos. 3 to 7 are his Legal Heirs. The Petitioner in Arbitration Petition 767 of 2009 is original Respondent No. 8 and Arbitration Petition No. 677 of 2009 is by original Respondent No.9. The other Respondents though served not present.

3 The Principal borrower submitted an application on 19 June 1989, for enhancement of Cash Credit Facility from Rs.10 lacs to Rs.15 lacs. The same was against the Security of Stock and Trade with 25% margin subject to hypothecation. The Application for Cash Credit Facility of Rs.15 lacs was filed on 21 January 1991. The same was kept pending. Because of a considerable loss of more than Rs.13 lacs, an application to the bank for a settlement on 27 May 1991, and requested for adjustment. On 8 June 1991, the sanction was granted for Rs.15 lacs. As there was default, the bank issued demand notices some time in January 1992. But as alleged, it were not addressed to the Petitioners.

4 The demand notices were addressed to all other guarantors as they alleged to have been signed the documents in the year 1989. A request was made again in 1992 to settle the matter. The claimant bank ultimately on 20 June 1992 filed a dispute Application No. 721 of 1992 before the Cooperative Court at Mumbai, as at the relevant time, they were governed by the provisions of Maharashtra Cooperative Societies Act, 1960 (for short, the “MCS Act-1960”).

5 The same was opposed basically by Respondent Nos. 8 and 9 and also by the Principal borrower in the year 1994. The Petitioners have also filed written statement on 20 April 1995. The issues were framed some time in the year 2000. An additional written statement was also filed. The issues were recasted on 12 June 2002. By an order dated 18 February, 2003, the Cooperative Court returned the plaint to the bank by holding that the Court has no jurisdiction, in view of the specific provisions of the MultiState Cooperative Societies Act2002 (for short, “MSCS Act-2002”), which came into force w.e.f. 3 July 2002.

6 On 28 June 2006, in view of specific provisions as available under the MSCS Act2002 (Chapter-IX) for the settlement of dispute, an application was filed for reference of disputes. An Arbitrator was appointed accordingly. The Petitioners filed written statement some time in October 2007 before the Arbitrator. The claimant filed claim affidavit on 21 February 2008. An application was filed by the Petitioners to produce and furnish copy of the documents referred. The claim was opposed by the Petitioners also. Notice for production of documents was also issued in 13 May 2008. The same was replied by the bank. The Petitioners moved an application directing the bank to produce the records and proceedings of the Cooperative Court. The same was opposed. An application was filed by the Petitioners for framing issues on 28 August 2008. However, the learned Arbitrator by an order dated 28 August 2008 rejected the application by holding that the Arbitrator is not bound by the Code of Civil Procedure (for short, “the CPC”). No issues w