ssm sm sm IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION APPEAL APPEAL APPEAL NO.93 OF NO.93 OF NO.93 OF 2004 2004 2004 IN IN IN ARBITRATION ARBITRATION ARBITRATION PETITION NO. 311 OF 2003 PETITION NO. 311 OF 2003 PETITION NO. 311 OF 2003 Oriental Bank of Commerce, Through its Asst. General Manager, Having office at Stock Exchange Branch, Dr. V.B.Gandhi Marg, And also at ALF Building, Gokhale Road (South), Dadar, Mumbai- 400 050. ...Appellants. (Orig. Petitioners) Vs. 1. Sir Kikabhai Premchand Trust, Settlement No.XI, a Public Charitable Trust, having its Office at Plot No.96, Sion-Matunga Estate, Near Gandhi Market, Sion, Mumbai-400 022 Through Chairman 2. Manohar C. Shah 3. Kanti Lal K. Sheth. 4. Navinlal L. Shah 5. Laxmikant J. Tanna 6. Ashok C. Shroff 7. Arun R. Mehta All of Mumbai, Indian Inhabitants, Trustees of Trust, 96, Sion-Matunga Estate, Near Gandhi Market, Sion, Mumbai-400 022. ...Respondents. Mr. K.T.S. Tulsi, Senior Advocate with Mr. D.M.S. Shrivastava & Mr. J. S. Saluja and Mr. Vikas Pahwa i/by Mr. Rajesh Dhane for the Appellants. ( 2 ) Mr. Aspi Chinoy, Senior Advocate with Mr. P.N.Mody with Ms. Sunita Masani i/by M/s. N.C.Dalal & Co. for the Respondents. CORAM CORAM CORAM : DR. S. RADHAKRISHNAN & : DR. S. RADHAKRISHNAN & : DR. S. RADHAKRISHNAN & ANOOP ANOOP ANOOP V. MOHTA, JJ. V. MOHTA, JJ. V. MOHTA, JJ. DATE DATE DATE OF RESERVING THE JUDGMENT : 25th January, 2008. OF RESERVING THE JUDGMENT : 25th January, 2008. OF RESERVING THE JUDGMENT : 25th January, 2008. DATE DATE DATE OF PRONOUNCING THE JUDGMENT: 3rd March, 2008. OF PRONOUNCING THE JUDGMENT: 3rd March, 2008. OF PRONOUNCING THE JUDGMENT: 3rd March, 2008. JUDGMENT JUDGMENT JUDGMENT ( PER ANOOP V. MOHTA, J.):- ( PER ANOOP V. MOHTA, J.):- ( PER ANOOP V. MOHTA, J.):- . Being aggrieved and affected by the Judgment/order passed by the learned Single Judge in Arbitration Petition No.311 of 2003 whereby the interim award dated 29/11/2002 passed by the learned Arbitrator has been confirmed. Therefore, this Appeal. 2. The case of the Appellants/ Original Petitioners is as under:- . In the year 1945, Respondent No.1 Sir Kikabhai Premchand Trust settlement No.XI (the Trust) was created in Mumbai. 3. Some time in the year 1994, Shri. Manhar Lal C. Shah (Respondent No.2) took over the Management of the Trust. ( 3 ) 4. On 28/07/1994, M/s. Adrik Traders was registered with the Registrar of Companies with 4 directors namely Shri. Bharat M. Shah, Navnit L. Shah and 2 NRIs. 5. On 16/04/1994, the Trust opened a S.B. Account No.64661 with the Dadar (West) Branch of the Appellant Bank, in the name of "Sir Kikabhai Prem Chand Trust Settlement No. XI". 6. On 02/09/1994, Shri. Bharat Shah son of the Chairman of the Trust, addressed a letter to the Chairman OBC requesting for the credit facility of 15 Crores against UTI Unit Scheme 1964. M/s. Adrik Traders had been projected in the letter as an associate concern of M/s. Ruby Mills managed and controlled by Shri. Manhar Lal Shah, Respondent No.2. The Bank granted the sanction in the year 1995. 7. On 25/01/1995, M/s. Adrik Traders resolved to borrow vide resolution dated 25/01/1995, Rs.7.21 Crores from M/s. Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd., for 91 days. 8. On 14/02/1995 to 23/02/1995, M/s. Adrik Traders ( 4 ) received the said amount between 14/02/1995 and 23/02/1995. 9. On 17/02/1995, Shri. Manhar Lal Shah Chairman of the Trust vide letter dated 17/02/1995 requested the OBC Dadar Branch to issue two COD for Rs.55 lakhs for the period 20/02/1995 to 31/07/1995 and for Rs. 292 lakhs for the period 16/02/1995 to 31/07/1995. Along with the letter two cheques bearing No. 094958 dated 16/02/1995 for Rs.292 lakhs and No. 094959 dated 20/02/1995 for Rs.55 Lakhs were given to the bank filed in the name of "Yourself". Bharat Shah although a non-entity in the Trust initialled the above said letter on behalf of the trust. 10. On 07/03/1995, Shri. Manhar Lal Shah vide letter dated 07/03/1995 requested the OBC Dadar to open COD for the period 02/03/1995 to 31/07/1995 for Rs.38 lakhs, with a cheque in the name "Yourself" bearing No. 94961, dated 02/03/1995 for Rs.38 lakhs. Mr. Bharat Shah had also initialled the above letter. 11. On 21/03/1996, Shri. Manhar Lal Shah and Shri. Navnit Lal Shah issued three cheques in the name of "Yourself" amounting to Rs.50 lakhs, Rs.20 lakhs and ( 5 ) Rs.35 lakhs from the Trust Account maintained with the Dadar Branch, for which no instruction exists in the Branch for the disposal of the proceeds. These cheques were used for Opening CDRs in the name of Sir Kikabhai Premchand Shah a fictitious identity and not in the name of the Trust. On 21/03/1995 when the 3 cheques were issued the balance in the account of the Trust was only Rs.15,40,013/-. 12. On 22/05/1995, Demand Loan of Rs.90 lakhs was sanctioned by Arun Bhargava against CDRs in the name of Kikabhai Premchand Shah. Out of which Rs.50 lakhs was transferred to the account of M/s. Adrik Traders on 22/05/1995 and rest of Rs.40 lakhs was transferred on 01/06/1995. However, the address given against Kikabhai Premchand Shah was C/o Ruby Mills, which shows that the fictitious account had been opened with the connivance of Shah family. 13. On 24/05/1995, the entire amount of Rs.7.21 Crores released from MSCCGMF Ltd became due and payable by Bharat Shah. 14. On 29/05/1995, that inspite of the fact that the account of M/s Adrik Traders was showing a debit ( 6 ) balance of Rs.1480 lakhs, against the OD Limit of Rs.1500 lakhs, Bharat Shah issued 3 cheques worth about Rs.4,26,66,181/- in favour of Maharashtra State Co-operative Cotton Growers Mkt. Fed Ltd. dated 29/05/1995 in the following manner: 1. Cheque No.7501119 for Rs.4,07,55,000/-. 2. Cheque No.750124 for Rs.14,10,411/-. 3. Cheque No.750125 for Rs.5,00,776/-. 15. On 30/05/1995, the three CODs made with the Bank were prematurely encashed (of an aggregate face value of Rs.3,85,00,000/-) to the tune of Rs.3,92,46,087/- and was credited in the account of the Trust. The CODs were marked as "A/c Closed on 31/05/1995". 16. On 30/05/1995, on the same day i.e. 30/05/1995 Rs.385 lakhs was transferred from the account of the trust to the account of M/s. Adrik Traders (P) Ltd., to enable the Bank to clear the cheques drawn by Mr. Bharat Shah (M/s. Adrik Traders) in favour of MNCCGMF Ltd. on 29/05/1995. On 30/05/1995, another amount of Rs.50 lakhs was transferred to M/s. Adrik Traders from M/s. Ruby Mills Ltd. (CC 100029) owned by the Chairman of the Trust Shri. M.L.Shah, to facilitate the encashment of the cheques issued in favour of ( 7 ) MNCCGMF Ltd. On 30/05/1995, Rs.7.46 lakhs was transferred from the Trust Account to M/s. Jayco in the form of a Pay Order prepared on an unsigned application by one Prakash Hosati favoring Jayco. 17. On 01/06/1995, Demand Loan for Rs.90 lakhs was disbursed in the name of one Kikabhai Premchand Shah against security of CDRs for Rs.105 lakhs (in the name of the Trust) and proceeds credited to the account of M/s. Adrik Traders by way of transfer of Rs.50 lakhs on 22/05/1995 and Rs.40 lakhs on 01/06/1995. . Thus the entire liability of Rs.7.21 Crores of MSCCGMF Ltd. was discharged by making up the deficiency in the following manner: - Rs.3.85 Crores from the Trust. (31/05/1995) - Rs.50 lakhs from Ruby Mills (31/05/1995) - Rs.90 lakhs from Demand Loan in favour of KB Shah (22/05/1995 and 01/06/1995) 18. On 24/07/1996, the Bank allegedly issued a certificate to the Trust certifying that the Trust had Certificate of Deposits of Rs.490 lakhs on that date inspite of the fact that the CODs of the value of Rs.3.85 Crores had already been encashed and an amount ( 8 ) of Rs.3,92,46,041/- had already been credited. 19. On 29/02/1996 M/s. Alpic Finance paid Rs.4.75 Crores as principal and Rs.22,30,027/- as Interest to M/s. Adrik Traders. The principal amount of Rs.4.75 Crores was transferred to the Sundry Account on 29/02/1996. The CDRs of Rs.105 lakhs in the name of Kikabhai Premchand Shah were also prematurely encashed and was transferred in the Sundry Account. 20. On 29/02/1996, an amount of Rs.5.75 lakhs lying in the Sundry Account was used by making pay orders of Rs.5.75 in the name of K.B.Shah in the following manner:- i) 542670 dated 29/02/1996 for Rs.1.75 Crores. ii) 542669 dated 29/02/1996 for Rs.2 Crores. iii) 542668 dated 29/02/1996 for Rs.2 Crores. . That according to the Trust the Bank issued a certificate to the Trust certifying that the Trust had Certificate of Deposits of Rs.5,51,99,890/- on that date. 21. On 29/02/1996 the Trust allegedly instructed the bank to debit its said Savings Bank Account with a sum ( 9 ) of Rs.23,00,110/- and to add such sum to the aforesaid maturity value of the said three certificates of Deposit and to issue a fresh Certificate of Deposit for that amount to mature on 19th June, 1996, at a maturity value of Rs.6,05,32,535.00/-. On 29/02/1996 these deposits were then transferred to the Stock Exchange Branch of the Bank for a period of 110 days. 22. On 01/03/1996, that the Bank (Stock Exchange Branch) allegedly issued a Certificate of Deposit No. 601072 dated 1st March, 1996, to mature on 19th June, 1996 with the maturity value of Rs.6,05,32,535/-. 23. On 11/03/1996, Shri. Arun Bhargava the Chief Manager was transferred to Stock Exchange Branch from Dadar Branch in Mumbai. 24. On 12/03/1996, Shri. Bharat M. Shah opened a CC Account No. 113 with the Stock Exchange Branch under the name and style of Galore International Projects Pvt. Ltd. Bharat Shah signed account Opening form. 25. On 13/03/1996 i.e. on the very next day of his transfer Shri. Arun Bhargava granted Bharat Shah a credit facility of Rs.4.31 Crores in the name of M/s ( 10 ) Galore International against the FDRs/ CDRs. The above said CDRs were not in the name of M/s. Galore International but were in the name of KB Shah a fictitious identity, therefore the Credit facility was granted against the third party FDRs. The amount of Rs.5.75 in the name of KB Shah was converted into two FDRs of Rs.4 Crores in Dadar Branch and Rs.1.75 Crores in Mandvi Branch. 26. On 13/03/1996, against the balance of only Rs.975/- as on 13/03/1996, Bharat Shah had issued a cheque of Rs.3.25 Crores in the name of one Jitendra Kapoor and a cheque of Rs.1.40 Crores favoring M/s Alpic Finance. 27. On 18/03/1996, on account of issuing the above-mentioned cheques worth about 4.65 Crores, a debit in the account of Galore International was created to the tune of Rs.4.67 Crores. 28. On 18/03/1996 a fictitious account in the name of one K.B.Shah was opened in the Stock Exchange Branch. The address in the Account Opening Form was shown as 102 Sriniketan. Sriniketan building happens to be the residence of Shri Manhar Lal Shah and Bharat Shah. ( 11 ) 29. On 18/03/1996, Shri. Arun Bhargava on the same day proposed to the Regional Office for the sanction of Demand Loan to the tune of Rs. 5.46 Crores, against the FDR to tune of Rs.5.75 Crores held in the name of K.B.Shah. 30. On 19/03/1996, while the note of Credit was under process, the credit was released and the amount was transferred in the account of K.B.Shah and after receiving the said credit in the name of K.B.Shah, an amount of Rs.515 lakhs was transferred to M/s. Galore International. 31. On 16/04/1996, K.B.Shah Loan Account was closed and FDR amount was transferred in the account. . On 16/04/1996, another loan was sanctioned to the tune of Rs.1.4 Crores in the name of K.B.Shah. 32. On 18/05/1996, Shri. Bharat Shah received 3.25 Crores as the principal amount and Rs.14,95,000/- an interest from Jitender Kapoor on 18/05/1996 and similarly Rs.1.40 Crores as principal and Rs.9,80,000/- from Alpic Finance. ( 12 ) 33. On 19/06/1996, Shri. Bharat Shah wrote a letter to the Bank on behalf of the Trust. 34. On 19/06/1996, according to the Trust a letter dated 19th June, 1996, was sent by the Trust requesting the Bank to renew the deposit and prepare a fresh Certificate of Deposit falling due on 18th September, 1996, with a maturity value of Rs.6,28,36,420.00. Mr. Bharat Shah son of Trustee Mr. M.C.Shah signed this letter. The Bank allegedly issues a certificate of Deposit No. 603684 dated 19th June, 1996, for an amount of Rs.6,28,36,420/- due on maturity on 18th September, 1996, at the aforesaid value. 35. On 21/06/1996, Shri. Manhar Lal Shah and N.L.Shah signed an application for opening an account in the name of SKPC Trust with the Stock Exchange Branch and the account was opened as SB No. 9725. 36. On 21/06/1996, the Trust placed a further sum of Rs.48,16,676.00 by way of a deposit with the Bank to mature on 22nd September, 1996, at a maturity value of Rs.50,00,000/-. The Bank issued a Certificate of ( 13 ) Deposit No. CA603976 dated 26th July, 1996 in respect of this deposit. 37. On 24/06/1996, that vide voucher dated 24/06/1996 an amount of Rs.3.25 Crores was transferred in the Trust Account from the Account of Galore International. 38. On 28/06/1996, Rs.25 lakhs was transferred back to the Account of Galore International from the account of the Trust in the Stock Exchange Branch. 39. On 29/06/1996, vide voucher dated 29/06/1996, an amount of Rs.2,98,63,391.15 was transferred for the creation of COD in the name of the Trust, which in fact had never been cheated. Subsequently, on the direction of the Hon’ble Supreme Court the same amount was paid to the Trust. 40. On 02/07/1996, Shri. Arun Bhargav, Chief Manager of Stock Exchange Branch committed suicide in Mumbai. 41. On 15/07/1996, the Trust by its letter to the Bank pointed out the errors in the statement and sought rectification. ( 14 ) 42. on 21/07/1996, a xerox copy of the Certificate of Deposit No. 603684 dated 19th June, 1996 due for maturity on 18th September, 1996 at a value of Rs.6,28,36,420.00, furnished to the Bank. The Bank informed the Trust that there did not appear to be any Certificate of Deposit of the value of Rs.6,28,36,420.00 maturing on 18th September, 1996, in the Bank’s records. 43. On 30/07/1996, the Trustees sent a reminder to the Bank (Stock Exchange Branch) in respect of the aforesaid entries in the Bank Statement and asked for a rectified Bank Statement. This was followed by further letters dated 3rd August, 1996, and 20th August, 1996 also addressed by the Trust to the Bank (Stock Exchange Branch). 44. On 20/08/1996, Shri. Manhar Lal Shah writes a letter to the General Manager, OBC and mentioned Bharat Shah as a representative of the Trust to speak to the Bank with regard to the CODs/ SB A/c No. 9725 in the name of the Trust. 45. On 21/08/1997, the Bank confirms to the Trust, ( 15 ) that the Certificate of Deposit dated 26th July, 1996, for Rs.50,00,000/- was in order but that information was required with regard to the Certificate of Deposit No. 603684 dated 19th June, 1996 which was not appearing on the Bank’s records. 46. On 22/08/1996, the Trust replied to the Bank, furnishing all the details of the Certificates of Deposit Preceding the Certificate of Deposit No. 603684. 47. On 08/09/1996, the meeting between the Trust and the General Manager of the Bank took place and the Trust was asked to furnish xerox copies of its Bank Statement and was informed that the said Certificate of Deposits aggregating Rs.3,85,00,000/- had allegedly been prematurely encashed in May, 1995. The Trusts’ representative denied this. 48. On 11/09/1996, the Trust wrote to the Regional Head of the Bank setting out the detailed facts and requested the Bank to pay the amount of Rs.6,28,36,420.00 to the Trust on 18th September, 1996. ( 16 ) 49. On 12/09/1996, the Bank wrote a letter dated 12/09/1996 to the Trust after examining the statements of the Saving Bank Account No. 64661 of the Trust, for the period 1st January, 1995 to 12th September, 1996, and noticed that three Certificates of Deposit issued on 24/03/1995 and 02/03/1995 for a face value of Rs.2.92 Crores, Rs.55,00,000/- and Rs.38,00,000/- respectively were encashed on 30/05/1995 i.e. prior to their maturity, and that these amounts were credited to the aforesaid Saving Bank Account of the Trust. Like wise, the amount of Deposits of Rs.50 lakhs, 20 lakhs and 35 lakhs was held under Cumulative Deposit Receipts and not in the form of Certificate of Deposits, and these deposits were also encashed and paid on 29/02/1996. 50. On 13/09/1996, the Trust wrote a letter dated 13/09/1996, denying the premature encashment of the Certificates of Deposits on 30/05/1995. 51. On 13/09/1996, another meeting took place between Shri. M.C. Shah and the Bank’s representative. The Trust again denied and premature encashment. 52. On 14/09/1996, the Bank wrote a letter to Shri. ( 17 ) Manhar Lal Shah as Chairman of the Trust stating that they have already explained how the Certificate of Deposits paid and proceeds thereof were applied as per their record. It was also observed that the records with the Trust were allegedly different from the Bank’s record. It was also stated that the matter was under active consideration/ investigation by the Bank and the Appellants were requested to bear with the bank till 23rd September, 1996. 53. On 17/09/1996, the Trust replied to the letter of the Bank denying giving any instructions of authority for premature encashment of the certificate of Deposits. It was also stated that in view of the Bank’s request it had deferred the matter up to 23rd September, 1996, the presentation of the Certificate of Deposit, which fell due on 18th September, 1996. 54. On 09/09/1996, the Trust presented for encashment, the Certificate of Deposit No. 603976 for Rs.50,00,000.00 which fell due on 22nd September, 1996. 55. On 23/09/1996, the aforesaid Certificate of Deposit of Rs.50,00,000.00 was duly paid by the Bank ( 18 ) to the Appellants by issue of a pay-order dated 23rd September, 1996. 56. On 24/09/1996, the Trust sought payment of the maturity value of Rs.6,28,36,420/- in respect of the Certificate of Deposit No. CA603684 deposited with the Bank. The Bank informed the Trust that the Certificate of Deposit was ’non-existent as per our branch records’ and returned the Certificate of Deposit. 57. By letter dated 29/09/1996, Trust and by letter dated 10th October, 1996, Solicitors of the Trust served a notice to the Bank calling upon, to make payment of the aforesaid amount (Rs.6,28,36,420/-). 58. On 24/10/1996, the Trust lodged a complaint with the Banking Ombudsman (Maharashtra and Goa) with regard to the aforesaid matters. 59. On 02/11/1996, the Banking Ombudsman decided the matter vide order dated 02/11/1996, observing that the instant case requires thorough investigation including from the vigilance angle by examining a number of documents as well as calling of witnesses recording ( 19 ) evidence etc. and that in the absence of such judicial powers the Ombudsman was not competent to deal with the complaint. 60. On 21/11/1996, the Trust filed Writ Petition No. 2294 of 1996 before this Court. 61. On 19/05/1997, the Central Bureau of Investigation on the complaint filed by the bank registered a Criminal case, being RC No. 4(E)/97 CBI BSFC/MUMBAI dated 19/05/1997 against one Shri. Bharat Shah son of the Chairman of the Trust, Late Shri. Arun Bhargava former Chief Manager of the Respondent Bank and two other employees of the Bank u/s. 120B IPC r/w 420/468/471 and 477-A of the IPC and 13(2) r/w 13(1) of the Prevention of Corruption Act. 62. On 21/07/1997, the Division Bench of Bombay High Court passed the order dismissing the Writ Petition, stating that undisputedly even before the filing of the petition by the Trust, by letter dated 12/09/1996 the Bank has already informed the Appellant about the pre-mature encashment of the deposits and by letter dated 24/09/1996 the Bank has informed the nonexistence of the deposits certificates. ( 20 ) 63. On 02/09/1998, the Respondent Trust filed the Special Leave Petition against the order of the high Court and this Hon’ble Court disposed of the SLP filed by the Trust, stating that the Bank shall pay Rs.2,98,63,391/- together with interest thereon at the rate of 5% p.a. with six monthly rests from 29/06/1996 till the date of payment (i.e. Rs.33,94,388/-). The Bank shall also pay to the Trust the difference between the sums of Rs.6,28,36,420/- and Rs.2,98,63,391/- amounting to Rs.3,29,73,029/- together with interest at the rate of 5% with six monthly rests from 18/09/1996 (i.e.Rs.34,83,949/-). The said amount of Rs.3,29,73,029/- together with the interest amount of Rs.34,83,949/- aggregating to Rs.3,64,56,978/- shall be paid by the Bank to the Trust within two weeks of the Trust furnishing security of immovable property at Bombay or such other security as may be offered by the Trust to the satisfaction of the Prothonotary and Senior Master of the Bombay High Court at Bombay for the sum of Rs.3,64,56,978/-. 64. The dispute as to the liability of the bank regarding the liability to pay the said amount of ( 21 ) Rs.3,29,73,029/- together with the dispute as to the rate of interest payable on the said amounts of Rs.2,98,63,391.15 as well as Rs.3,29,73,029/- was referred to the Sole Arbitrator Shri. Y.V.Chandrachud, former Chief Justice of India. 65. On 09/11/1998, the learned Sole Arbitrator Justice Y.V.Chandrachud held first arbitration meeting at his residence and directed the parties to file statement of claim/ reply/rejoinder and the filing of documents, inspection and discovery within 10 weeks. 66. In the year 2000, after conducting detailed and thorough investigation for about 3 years and after collecting comprehensive documentary evidence, the CBI has filed the charge sheet in the above case against 9 accused persons including the Chairman of the Appellant Trust Shri. Manhar Lal Shah and one trustee Navnit Lal Shah (Appellant Nos. 2 and 4 before this Hon’ble Court) besides Bharat Shah, the son of Appellant No.2. 67. On 11/08/2001, the instant charge sheet has also been placed on record vide Application dated 11th August, 2001 filed before the learned Sole Arbitrator ( 22 ) on behalf of the Respondent Bank. Respondent Bank. Respondent Bank. 68. On 08/09/2001, that after hearing both the parties, the learned Sole Arbitrator framed one preliminary issue and 13 other issues to be decided during the course of arbitration proceedings. The preliminary issue reads as under: . "If there was no mandate from the Public Charitable Trust for pre-mature encashment and credit/utilization of the Trust CODs, whether the allegation that one or two of the Trustees colluded with a Trustee’s son and with Bank officials in wrongfully diverting the Trust funds/ CODs can in law be a defense to a claim by the Public Charitable Trust for recovery of Trust funds/ CODs from the Bank." 69. In the month of October, 2001, pursuant to the charge sheet filed by the CBI in October, 2001, the Appellant Bank filed an application seeking amendment of the Reply filed by the Appellant Bank to the statement of Claim filed by the Claimants and ( 23 ) requested to allow the amendment by the insertion of certain paragraphs in the preliminary submissions in the Written Statement to the Statement of Claim filed by the Claimants. 70. On 07/03/2002, the learned Sole Arbitrator after hearing both the sides, vide Order dated 07/03/2002, directed to amend the Reply only to the extent of adding the following:- . "The Trust, through its Chairman Manhar Lal Shah, his son Bharat Shah and a Trustee Navnit Lal Shah, colluded with Arun Bhargava, General Manager of the Respondent, for perpetrating a fraud on the Respondent." 71. On 25/03/2003, the learned Sole Arbitrator on allowing the application of amendment made by the Appellant bank