JUDGMENT

1. The present petition under Section 34 of the Arbitration and Conciliation Act, 19961 has been filed assailing the arbitral award dated 06.12.2011 read with order dated 10.01.2012 under Section 33 of the Act.

Factual Background

2. The factual background in the context of which the present petition has been filed is briefly enumerated as under:

3. A company i.e. Samtel Colors Limited (herein referred to as borrower) availed from the petitioner an Inter-Corporate Deposit (ICD) facility for a sum of Rs. 1,70,00,00,000/- on 12.02.2007. The same was granted subject to the borrower furnishing a surety/pledge of 11 lakh shares held by the respondent in the borrower company, as a security for repayment of the outstanding amount under the ICD. It is the case of the petitioner that the said surety was given as a security for repayment of all outstanding amounts not only under the ICD but also "any other existing or future agreement".

4. It was the case of the respondent (claimant) that the borrower repaid the ICD on 19.11.2007 and thereby the borrower stood discharged. Consequently, the respondent (claimant) being the surety, automatically stood discharged and the petitioner herein was