Judgment

S.H. KAPADIA, J.- M/s Aurohill Global Commodities Ltd. has filed an arbitration application herein under Section 11 (9) read with Section 11 (5) of the Arbitration and Conciliation Act, 1996 (the said Act) for the appointment of arbitrators to settle the dispute between the said Company and M/s Maharashtra STC Ltd. (PSU). The facts giving rise to this petition briefly are as follows.

2. The petitioner Company is based in Cyprus having its offices in Russia and India. The petitioner has been exporting steel products for more than a decade.

3. Vide letter dated 2-3-2005, M/s Sunvijay Rolling and Engineering Ltd., Nagpur placed an order on the petitioner for supply of 5000 MT of billets. Accordingly, on 10-3-2005 the petitioner forwarded pro forma invoice to the said Sunvijay Rolling and Engineering Ltd. for the required quantity of billets for a total consideration of US $2,225,000. Payment was to be made through irrevocable confirmed letter of credit (LC) payable 100% at sight. The petitioners banker was M/s BNP. Subsequently, M/s Sunvijay Rolling and Engineering Ltd. informed the petitioner that they preferred to buy the billets through M/s Maharashtra STC Ltd. (the responde