Justice Sanjay Karol, J. (Oral)

Mr. Harish Behl, learned counsel for respondent No.5 has placed on record order dated 1.9.2010, passed by Joint Registrar, Cooperative Societies, Shimla, titled as Sh. K.K. Kapoor v. The Mandi Urban Cooperative Bank Ltd; Mandi, H.P. It is quite apparent that award dated 14.11.2005, passed by the Arbitrator in Arbitration Case No.5 of 2005, titled as Mandi Urban Cooperative Bank Ltd. versus Shri Amar Chand Sehgal and others qua the private respondent No.5 Sh. K.K. Kapoor has been set aside.

2. Facts are not much in dispute. Petitioner Sh. Amar Chand Sehgal availed benefits of Cash Credit Limit from respondent No.4-bank. Sh. K.K. Kapoor respondent No.5 and Smt. Manoranjana Sehgal respondent No.6 stood guarantors. Persistent default in discharging the contractual obligations on the part of the petitioner resulted into nonpayment of a sum of `15,73,112.10 as on 22.12.2004. Since the amount was not paid, in spite of several demands made by the respondent-bank, arbitration proceedings, in accordance with the statutory rules/contractual obligations, were initiated.

3. In Arbitration Case No.5 of 2005, Sh. M.R. Sharma, (Ret. ARCS), Mandi, H.P., w