By these petitions filed under section 34 of the Arbitration and Conciliation Act, 1996, the petitioners seeks to challenge the awards made by the learned arbitrator under section 84 of the Multi State Cooperative Societies Act, 2002 (hereinafter referred to as “Multi-State Act, 2002”) allowing the claims made by the first respondent. As the learned counsel appearing for parties have made common arguments in all the four petitions, the same were heard together by consent of the parties finally at the admission stage and are being disposed of by this common order.

2. The facts in Arbitration Petition No. 85 of 2010 and Arbitration Petition No. 23 of 2010 are as under:-

(a) The first petitioner in Arbitration Petition No.85 of 2010 is a private limited company.

One of the Director of first petitioner Mr. Abdul Latif Mahmood Dadan expired leaving petitioner no. 3 to 6 as his legal heirs. Petitioner no. 3 is one of the Directors of the first petitioner. Petitioner no. 3 is also one of the legal heirs of Mr. Abdul Latif Mahmood Dadan. Petitioner no. 4 to 7 are legal heirs of the said Abdul Latif Dadan. Petitioner No. 8 was a guarantor who had executed guarantee to secure the facilities granted by the first respondent to the first petitioner. Respondent nos. 2 and 3 are also guarantors. On 14th June, 1981 the first respondent granted a term loan, cash credit over draft and over drawn facility of Rs. 15 lacs in favour of the petitioner no. 1. The first respondent disbursed a sum of Rs. 1 lacs as term loan on 10th October, 1981 and Rs. 7 lacs as cash credit on 7th September, 1981 to the first petitioner against the hypothecation of machinery, equipments, accessories, land, building and plant, book debt, stock in trade, raw material etc. The Petitioner no. 8 and respondent nos. 2 and 3 stood as securities for repayment of the said loan. The first petitioner also executed hypothecation deeds in favour of the first respondent. It was the case of the first respondent that the first petitioner committed default in making payment of the various amounts towards the term loan, cash credit, over draft and over drawn/adjustment accounts and sum of Rs.12,52,858.86 was due and payable by the first petitioner to the first respondent. According to the first respondent, guarantors were also jointly and severally liable to the first respondent in respect of the said facilities.

(b) On 20th May, 1983, the first respondent filed dispute being Cooperative Case No. CC-II/372 of 1983 under section 91 of the Maharshtra Cooperative Societies Act, 1960. The said summary case was subsequently renumbered as CC/V/685 of 1987. The first respondent had claimed Rs.12,52,858.86 in the said proceedings. Parties in the said proceedings had commenced oral evidence. The first respondent thereafter was converted into Multi-State cooperative Bank under the provisions of the said Multi-State Act, 2002. The Cooperative Court passed an order on 18th June, 2002 holding that the said court had no jurisdiction to try and entertain the dispute and returned the plaint to the disputant to file before appropriate authority.

(c) On 28th June, 2006, the first respondent filed arbitration proceedings (RC/204/06) before the learned arbitrator appointed under section 84 of the Multi- State Act, 2002 inter alia praying for an award in the sum of Rs.4,92,34,124.40 with further interest thereon and cost. In the said proceedings, the petitioner nos. 3 to 6 have also been joined as legal heirs of the said Mr. Abdul Latif Dadan. The Petitioners filed common written statement and also counter claim before the learned arbitrator disputing the claims made by the first respondent on various grounds and also praying for an award against the first respondent in the sum of Rs.77.69 lacs with interest thereon. Petitioner no. 3 also filed affidavit of evidence in support of counter claim before the learned arbitrator.

(d) On 9th October, 2007 the first respondent made an application unde