The petition challenges an arbitral award dated November 23, 2023, under Section 34 of the Arbitration and Conciliation Act, 1996. The award directed the petitioner to pay the respondents Rs. 65,72,558/- after adjusting for their claim of Rs. 59,97,210/-. The petitioner contends the award is based on an unproven valuation report and alleges procedural lapses. The court considers whether to admit the petition and grant an unconditional stay.

1. Introduction and Petition Details

   • Filed under Section 34 of the Arbitration and Conciliation Act, 1996.
   • Challenges part of the arbitral award dated November 23, 2023.

2. Facts Narrated by the Petitioner

   • Loan Agreement details and terms.
   • Execution of Demand Promissory Note and Deeds of Guarantee.
   • Hypothecation of assets.
   • Occurrence of default and invocation of arbitration.

3. Arbitration Proceedings Timeline

   • Statements of Claim and Counter Claims.
   • Various arbitration meetings and communications.
   • Sale of assets and valuation disputes.
   • Substitution of parties.

4. Petitioners' Grounds for Challenge

   • Counter claim barred by limitation.
   • Arbitrator's reliance on unproven valuation report.
   • Procedural lapses and lack of proper opportunity to respond.
   • Violation of principles of natural justice.

5. Respondents' Submissions

   • Support for the arbitral award.
   • Reference to legal precedents and procedures.

6. Court's Preliminary Observations

   • Findings of the arbitrator regarding sale of assets and valuation.
   • Reliance on an unproven valuation report amounts to patent illegality.
   • Petitioners' failure to file a reply to the counter claim not an admission of allegations.

7. Legal Context and Judgements Cited

   • Reference to Section 36 of the Arbitration Act.
   • Judgements cited by respondents.
   • Analysis of procedural requirements and legal precedents.

8. Conclusion and Court's Decision on Admission and Stay

   • Need for oral evidence to prove the valuation report.
   • Admittance of the petition on grounds of patent illegality.
   • Consideration of unconditional stay based on legal provisions.