JUDGMENT :

Rajasekhar Mantha, J.

1. The subject matter of the instant proceeding is an award dated 29th February 2020 passed by Mr. XXX, learned Senior Advocate and Sole Arbitrator. The Arbitrator was appointed by consent as recorded in Consent Terms filed by the parties, recorded in order dated 1st August 2014 in C. S. No. 344 of 2014 filed in the Ordinary Original Civil Jurisdiction of this Court.

2. AP 364 of 2020 (Gopal Das Bagri Vs. C & E Ltd. &Ors.) has been filed by the award debtors under Section 34 of the Arbitration and Conciliation Act of 1996 (the Act of 1996).

3. AP 402 of 2020 (Feather Touch Ltd. Vs. C & E Ltd.) has been filed for setting aside the award under Section 34 of the Act.

4. EC 145 of 2020 (C & E Ltd. Vs. Gopal Das Bagri) is another application for execution under Section 36 (1) of the said Act.

5. EC 81 of 2022 (C & E Ltd. Vs. Gopal Das Bagri) has been filed by the award holder under Section 36 (1) of the said Act.

6. GA 1 of 2022 has been filed in AP 364 of 2020 by the award debtor under Section 36 (2) of the said Act for the unconditional stay of the award, inter alia, for being vitiated by fraud.

7. The applications under Section 36 (2), being GA 1 of 2020 in AP 402 of 2020 and GA 1 of 2020 in AP 364 of 2020 were taken up first.

8. In course of hearing of the said applications, this Court had directed the counsel for the parties to also address on the preliminary issue with regard to the applications under Section 34 as well as section 36(1) of the said Act. The parties have made detailed, elaborate submissions over 7 days, spread over a period of 4 months.

FACTS OF THE CASE

9. The dispute is between the Bagri group, headed by Gopal Das Bagri and his sons on one side, and the Bhaiya group, headed by Bulaki Das Bhaiya on the other side. The said Bulaki Das Bhaiya died in the course of the proceeding before this Court. Substitutions have been carried out.

10. Originally C.S. No. 344 of 2012 was filed by the Bagri family comprising Gopal Das Bagri, Rama Bagri, Anil Bagri, Inder Kumar Bagri, and Sarala Bagri, against M/s. C.& E. Ltd., Bulaki Das Bhaiya, and one M/s. Feather Touch Ltd. and Abhishek Kothari for various reliefs in the Ordinary Original Civil Jurisdiction of the Hon’ble Court.

11. As per consent terms filed in the said suit, a Single Bench of this court on 1st August 2014 referred all disputes and differences to Arbitration, and then Mr. XXX was appointed by consent of the parties.

12. In the first sitting of the arbitration, held on 10th August 2014, the learned Arbitrator disclosed in writing to the parties that he had earlier represented Bulaki Das Bhaiya and his group companies who is evidently a claimant in the proceedings. Upon such disclosure, the award debtors indicated to the Arbitral Tribunal that they had full faith and confidence in the learned Arbitrator. The relevant portions of the minutes of the meeting held on 10th August 2014 are set out below:-

“2.1 At the outset, the Arbitrator informed the parties that he had professionally been engaged several years ago as counsel to appear for Mr. Bulaki Das Bhalya, one of the claimants in this proceeding, or by companies within his management and control in certain earlier legal proceedings with regard to which Shri Bhalya had attended the conferences and had occasi