Important Points:
Section 84 will come into play for a limited purpose when reference of a dispute is under Multi-State Co-operative Act, 2002, though begin with non-obstant clause but restricted to any dispute touching the Constitution, management or business by a Multi-State Co-operative Societies arises among members, past members and persons claiming through members, past members and deceased members or between a member or between the Multi-State Co-operative Societies or any other Multi-State Cooperative Societies and liquidator etc. so stated in clause (a), (b), (c) and (d) of sub-Section (1) of Section 84. The above nature of dispute shall be referred to arbitration. Further, sub-section (2) of Section 84 elaborates types of disputes touching the constitution, management or business of a Multi-State Co-operative Societies in Clause (a), (b), (c) and finality of decision by arbitrator is only with regard to a contention if raised about a dispute referred to arbitration under this section is or is not a dispute touching the constitution, management or business of a Multi-State Co-operative Society. That sub-section (5) of Section 84 is about applicability of provisions of Arbitration and Conciliation Act, 1996.

Anant S. Dave, J.

Both these Letters Patent Appeals arise under Clause 15 of Letters Patent, whereby, judgment dated 10.5.2013 rendered in the writ petition and five civil applications filed therein is under challenge.

2. The appellant in both these appeals is original respondent No.1 and respondent Nos. 1 to 3 are original petitioners and respondent No.5 is the learned Arbitrator.

3. Before considering the contentions of learned advocates appearing for the parties in both these appeals, it is necessary to mention brief facts, so as to determine issues involved in these appeals.

4. The name of the parties is referred to as it appears in the writ petitions filed by the petitioners Gujarat Industrial Investment Corporation Ltd., (in short "GIIC") is petitioner No.1 in Special Civil Application No.20962 of 2006, a Company registered under the Companies Act 1956 set up by Government of Gujarat for Industrial Investment and overall growth of industries in the State of Gujarat and Government of Gujarat Enterprises. Petitioner No.2 is Gujarat State Financial Corporation established under the provisions of State Financial Corporation Act, 1951 (in short 'GSFC') whereas petitioner No.3 is a trust established and created for a special purpose by the Central Government vide trust deed dated 24.9.2004 for acquiring non-performing assets (NPA) from Industrial Development Bank of India(for short "IDBI"). Respondent No.1 and appellant in both these appeals, is a co-operative bank (in short "GICB), which was earlier governed by Gujarat Co-operative Societies Act, 1961 and now a Multi-State Co-operative bank and hence governed by Multi-State Co-operative Societies Act, 2002 (for short "Societies Act 2002") and mainly dispute has arisen in the context of financial facilities given by petitioner Nos. 1, 2, 3 and respondent No.1, appellant in both these appeals.

5. M/s. Jaiswal Pharma Chem Limited is original respondent No.2 and previously known as M/s. Shri NICOSET Limited and the name of the borrower NICOSET limited was changed on 4.9.2000 to M/s. Jaiswal Pharma Chem Limited (in short "JPCL"). The petitioner No.1 GIIC sanctioned term loan of Rs.325 lacs in favour of JPCL on 4.7.2001. The petitioner NO.2 GSFC sanctioned term loan of Rs.240 lacs vide letter of sanction dated 11.10.1999, for which, equitable mortgage by depositing tittle deeds was executed on 27.11.1999 by a Director of erstwhile M/s. NICOSET Limited in favour of GSFC. Thereafter IDBI sanctioned term loan of Rs.1200 lacs in favour of M/s. NICOSET, for which, security documents like loan agreement and deed of hypothecation dated 1.8.2000 were executed and also indenture of mortgage dated 5.12.2000 by JPCL confirming the same in favour of IDBI etc. The above indenture of mortgage referred to term loan of Rs.1200 lacs by IDBI as 'the first loan' and term loan of Rs.240 lacs of GSFC as 'the second loan'. JPCL ratified all above borrowings by erstwhile NICOSET Limited and including mortgage deed and even charge was registered under Companies Act, 1956 with Registrar of Companies. Later on IDBI had assigned its debts to petitioner No.3-trust Stressed Assessment Stipulation Fund (in short "SASF") as per transfer deed dated 29.9.2004.

5.1. The change in the name of erstwhile M/s. Shri NICOSET limited as M/s. Jaiswal Pharma Chem Limited was approved by the petitioners pursuant to letter dated 21.5.2001. JPCL committed defaults in re-payment of loans to GIIC, GSFC and IDBI and, therefore, all three institutions permitted petitioner No.1 to take action under Section 29 of the State Financial Corporations Act, 1951 (For short "SFC Act, 1951"). The statutory notice to JPCL was given after providing reasonable opportunity etc. possession of the industrial unit at Ankleshwar was taken over by petitioner No.1 on 3.2.2003 in exercise of powers conferred under Section 29 of SFC Act 1951. Even thereafter, JPCL failed to re-pay outstanding dues of GIIC, advertisement was issued inviting offer by