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Head Note

The Arbitration and Conciliation Act, 1996  - Section 7 , Section 11

Application to settle claim - Guarantor for a loan - Not a party to the loan - Agreement between lender and borrower - Loan agreements among lender borrower and third guarantor - Disputes - Lender referred claims for arbitration - Appellant impleaded as respondents - Court held - An arbitration agreement between lender on one hand and borrower and one of guarantors on the other - Cannot be deemed or construed - An arbitration agreement - In respect of another guarantor - Not a party to arbitration agreement - Held - Impleading of appellant as a respondent in arbitration proceedings - Award against appellant in arbitration cannot sustained - Both arbitration awards against appellant set aside - Appeals allowed.

Topic(s)-

Important Decision(s)- Guarantor for a loan - Not a party to the loan - Award cannot sustained.