JUDGMENT

D.K. JAIN, J. —

1.Leave granted.

2.This appeal by Special Leave arises out of a judgment and order dated 1st March, 2005 rendered by the High Court of Judicature at Bombay, whereby the learned Single Judge has set aside the order passed by the Arbitral Tribunal, holding that they did not have jurisdiction to entertain and try the claim and counter claim made by the parties.

3.In order to appreciate the issue, requiring determination, a few relevant facts may be stated The appellant M/s. Bharat Petroleum Corporation Limited is a Government of India Undertaking, under the administrative control of the Ministry of Petroleum & Natural Gas and is engaged in refining, distributing and selling of petroleum products all over the country. The respondent M/s. Great Eastern Shipping Company Limited is engaged in the business of shipping and allied activities and owns a fleet of tanker vessels for charter, including the vessel known as JAG PRAJA.

4.An agreement, called the Time Charter Party in legal parlance, was entered into between the appellant and the respondent on 6th May, 1997 for letting on hire vessels for a period of two years from 22nd September, 1996 to 30th June, 1997 and from