RAJIV SAHAI ENDLAW, J.

1. Both petitions under Section 34 of the Arbitration Act, 1996 arise out of a common arbitral award dated 31st July, 2000 in the claims preferred by each of the petitioners against the respondents (common in both the cases). The petitioners had before the arbitrator, preferred claims, besides against the respondents, also against M/s Ganga Automobiles Ltd. (which is not a party hereto). Identical questions being involved in the two petitions, they are taken up together for consideration.

2. To appreciate the challenge to the arbitral awards, it is deemed expedient to set out certain facts.

3. On 14th February, 1997 the following documents were executed in each case:- (a). An Inter Corporate Deposit Agreement between M/s Ganga Automobiles Ltd. and the petitioner in each case. In the said agreements, identical in language, M/s Ganga Automobiles Ltd. is described as the borrower and the petitioner in each case as the lender. The language of the said agreements is inter-alia as under:

“Whereas the borrower is at present in need of financial assistance for the usual business operations of the company and had approached the lender for the same by way of Inter Corporate Deposits. And whereas lender has agreed to grant to the borrower the required Inter Corporate Deposit herein after referred to as “ICD” (of Rs.1 crores in favour of petitioner M/s Poysha Oxygen Pvt. Ltd. and Rs.2.70 crores in favour of petitioner M/s Goyal MG Gases Ltd.) on the above representation of the borrower, for a period of 90 days at an interest rate of ……………. In view of the above consideration lender has advanced on this day the sum of (Rs. 1 crores in case of petitioner M/s Poysha Oxygen Pvt. Ltd. and Rs.2.70 crores in case of petitioner M/s Goyal MG Gases Ltd.) to the borrower as ICD for a period of 90 days at an interest rate of 30% per annum payable…………… the receipt of which is hereby expressly and specifically admitted by the borrower as well as by a separate money receipt”

(b). Deeds of personal guarantee were executed separately by the respondent No.1 Sh. Ashwini Suri, respondent No.2 Sh. G. Sagar Suri in favour of each of the petitioners and for amounts aforesaid with respect to each of the petitioners. The terms of the said deeds, which are also identical and in so far as relevant for the present purposes are as under:- “Whereas the lender has considered to grant to M/s Ganga Automobiles Ltd……….. an Inter Corporate Deposit of Rs…………… vide ICD agreement dated 14th February, 1997 for the usual business operation of the borrower company and in consideration of the representations made by the guarantor to the lender, the lender has agreed to provide the deposit mentioned herein above. In consideration of the premise, the guarantor hereby unconditionally, absolutely and irrevocably guarantees to and agrees with the lender as follows………………. In the event of any default on the part of the borrower in payment/repayment of any of the monies referred to above or in the event of any default on the part of the borrower to comply with or perform any of the terms conditions and covenants contained in the ICD Agreement the guarantor shall, upon demand, forthwith pay to the lender without demur all the amounts payable by the borrower under the ICD Agreement”. (c). Deed of corporate guarantee with respect to amount of ICD agreement with each petitioner was also executed by the respondent No.3 M/s. Delhi Auto & General Finance Pvt. Ltd. (Delhi Auto). The terms thereof relevant for the present purposes were as under:- “Whereas the lender has considered to grant to the borrower an Inter Corporate Deposit of Rs……………….. vide ICD Agreement dated 14th February, 1997 for the usual business operations of the borrower company and in consideration of the representations made by the guarantor to the lender, the lender has agreed to provide the deposit mentioned herein below:- And whereas in case of default by the borrower in rep