JUDGMENT :

SANDEEP V. MARNE, J.

1. The Petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (the Arbitration Act) challenging the Award of the learned sole Arbitrator dated 10 October 2023. By the impugned Award, the learned sole Arbitrator has allowed the claim of the Respondent-Bank by directing the Petitioner to pay to the Respondent sum of Rs.7,23,44,313.54 forming part of two loan outstanding amounts of Rs.2,06,61,658.53 and Rs.5,16,82,655.01 as on 13 October 2022 with future interest @ 6% per annum from 14 October 2022 till realisation. In addition to arbitration fees of Rs.47,300/- and administrative costs of Rs.9,000/-, the learned Arbitrator has further declared that the awarded sum is secured by the equitable mortgage of the Unit No.7/19, Bharat Industrial Estate at Ram Mandir Road, Goregaon (East), Mumbai-400 060 and that the Bank can recover the dues by sale/disposal of the mortgaged property. The learned Arbitrator has also restrained the Petitioner from transferring, alienating and /or creating any third-party rights in the mortgaged property. It is further directed that the awarded sum is also secured by hypothecation of machinery, furniture, fixtures, dies and tools, stocks and book debts.

2. M/s. Chetna Metal Industries (CMI) was a proprietary concern of late Anand Sankappa Shetty, who passed away on 27 September 2013. Petitioner is the widow of late Anand Sankappa Shetty. The Respondent is a Cooperative Bank registered inter alia under the Multi State Co-operative Societies Act, 2002 (the MSCS Act). Petitioner’s husband was member of the Respondent-Bank and Petitioner was a nominal member. The CMI applied for Term Loan of Rs.2,00,000/- and Cash Credit Limit of Rs.1,00,000/- to the Respondent, which sanctioned Term Loan of Rs.2,00,000/- and Cash Credit Limit of Rs.80,000/- vide letter dated 13 June 1984. The loan facilities were secured by hypothecation of machinery, tools, etc. and personal guarantee of the Petitioner. A collateral security in the form of Life Insurance Policies was also given. CMI was the principal borrower and the Petitioner was the guarantor.

3. According to the Petitioner, the immovable property bearing Unit No.7/19, Survey Nos.14 and 15, Hiss Nos.3, 7, 8, Bharat Industrial Estate, Ram Mandir Road, Goregaon (East), Mumbai -400 060 (the Property) was not a collateral security for either of the credit facilities. On 26 May 1986, the Respondent-Bank issued notice to the Petitioner that the loan accounts were in arrears. In the year 1987 the Respondent-Bank filed dispute before Co-operative Court, Mumbai for recovery of sum of Rs.1,83,423.14 due under Term Loan and Rs.58,833.48 under Cash Credit facility aggregating Rs.2,42,256.62. On 2 December 2002, the Respondent -Bank withdrew the said dispute for unknown reasons.

4. On 31 December 2009, the Respondent-Bank issued possession notice for taking physical possession of the property. Petitioner objected to the notice. After demise of late Anand Sankappa Shetty, the Respondent-Bank issued symbolic possession notice dated 2 June 2014 and called upon the Petitioner to pay Rs.30,09,389.16 as on 30 September 2003. Petitioner filed Securitisation Application No.517 of 2016 against the Respondent before the Debt Recovery Tribunal-II, Mumbai (DRT). The Tribunal allowed the Application and restored possession of the property by order dated 18 March 2021. By notice dated 14 October 2022, the Respondent called upon the Petitioner to pay Rs.7.23 crores as outstanding amount in respect of both the loans. The Central Registrar of Co-operative Societies, New Delhi passed order dated 18 October 2022 under sub-section (4) of Section 84 of the MSCS Act appointing the sole Arbitrator. Respondent-Bank filed its statement of claim. Petitioner also filed statement of defence. Issues were framed based on pleadings. Parties led evidence in support of their respective cases. The learned sole Arbitrator has rendered Award dated 10 October 2023, o