S.N.PRASAD,M/S HITEK INDUS.(BIHAR)LTD. vs M/S MONNET FINANCE LTD..

The Supreme Court addressed whether a guarantor, not a party to the loan agreement containing an arbitration clause, can be compelled to arbitrate disputes regarding loan repayment under the Arbitration and Conciliation Act, 1996. The Court held that the guarantor can be included in arbitration proceedings if the dispute arises from the guarantee, affirming the applicability of Section 11 of the Act for appointing an arbitrator. The appeal was dismissed, upholding the arbitration awards against the guarantor.