( 1 ) THIS order will dispose of the defendant s application under Section 8 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act ) read with Section 151 of the Code of Civil Procedure. The plaintiff has already initiated arbitration for the recovery of its-dues from the Company (defendant No. 4 ). It has filed the present suit for recovery against the Guarantors as well as the company (defendant No. 4), predicating it on a Guarantee Bond.

( 2 ) IT is contended by learned Counsel for the defendants that, on 15. 9. 1995, two agreements were executed between the parties. The first is the "associateship Agreement", the significant contents of which are that the applicants/defendants had to submit personal bonds of the Promoter Directors in respect of the loan to be taken from the plaintiff (Clause 2) and that they had consented to arbitration (Clause 19 ). The second document executed on the same date was the Bond of Guarantee, the salient covenants of which are that in the event of a default in payment of the principal, interest and other monies due to the plaintiff, the Guarantors will pay the whole of the such amount (Clause 1); and that