BADAR DURREZ AHMED, J.

( 1 ) -THESE applications have been filed under Order 47 read with Section 151 of the Code of Civil Procedure, 1908 by way of objections to the Execution Petition. The Execution Petition has been filed by the decree-holder for execution of the consent award made and published by the Sole arbitrator Justice A. P. Chowdhri (Retired) on 28/6/2003. Background:

( 2 ) AS noted in the Award the decree-holder had advanced a loan of Rs 5 crores to Morepen Laboratories Limited (JD No. 1 ). The terms and conditions of the loan were incorporated in the Inter Corporate Deposit (ICD) Agreement dated 19. 9. 2002. Clause 5 of the said ICD Agreement provided for the rate of interest and was as under:"5. The normal agreed rate of interest for placement of the ICD is 36% p. a. , however as a special case the lender is placing the ICD at concessional rate of 21% front ended payable at quarterly rests. In case of delay or default in making payment of principal amount or any part thereof on its due date, the normal rate of interest of 36% p. a. with monthly rests shall be payable by the borrower from the date of default till the date of repayment of the ICD along with interest/overdue interest in full. "the said ICD Agreement contained an arbitration clause, namely, Clause 20. Mr sushil Suri (JD No. 2) had extended a personal guarantee. Mr Arun Suri (JD No. 3) also extended a guarantee for the repayment of the loan and Blue Coast Hotels and Resorts Ltd (JD No. 4) stood surety.

( 3 ) DISPUTES had arisen between the parties with regard to the repayment of the loan. The said disputes were referred to arbitration of the said Sole Arbitrator. However, during the pendency of the arbitration proceedings, the parties negotiated the settlement and presented a Memorandum of Settlement dated 27/5/2003 in respect of the said ICD Agreement dated 19/9/2002. By virtue of the said settlement the judgment debtors acknowledged their joint and several liability to pay to the decree-holder a sum of Rs. 5,46,74,808. 00 towards principal and overdue interest calculated upto 7. 5. 2003 at the rate of 30% per annum at monthly rests. It was also agreed and understood by the parties that the judgment-debtors shall also pay interest at the rate of 30% per annum on monthly rests basis on the amount aggregating to Rs 5,46,74,808. 00 outstanding as on 7/5/2003 till the actual date of payment. The other terms and conditions are mentioned in detail in the Award. It was specifically mentioned in the Award that the Award was being made under section 30 of the Arbitration and Conciliation Act, 1996 in terms of the said memorandum of Settlement as per the joint request of the parties and the memorandum of Settlement along with annexures thereto were made an integral part of the Award. It was also noted in the Award that the parties agreed that the award will not be challenged under Section 34 of the Arbitration and Conciliation act, 1996 by any of the parties. On the basis of the said settlement, joint application and statements, the learned Arbitrator made the Award on the following agreed terms:" 1. That the respondents are jointly as well as severally liable to pay the debt, due and payable to the claimant as per Annexure 'a' of the settlement Agreement towards principal and interest on principal calculated @ 30% p. a. at monthly rest from the due date of ICD i. e. 17. 1. 2003 till the date of payment. 2. It is declared that in case the respondents make payments in terms of the Settlement Agreement, the claimant will give a rebate in the rate of interest @ 13% per annum and the respondents shall pay the amount of debt payable as mentioned in Annexure B of the settlement Agreement. The respondents had accordingly given cheques for monthly payments as per schedule annexed as Annexure C. " 3. It is directed that on occurrence of default as defined in Clause 3 and if the default is not remedied as mentioned in Clause 4 of Settlement agreement, then (i) the ple