Judgment

Tarun Chatterjee, J. —

1. Leave granted.

1A. This is an appeal by special leave against the Judgment and Order dated 15th of June, 2007 of the High Court of Andhra Pradesh at Hyderabad in CRP No. 6618 of 2006, whereby the High Court had affirmed the Order dated 30th November, 2006 of the III Additional District Judge, Kakinada in IA No. 3861 of 2005 arising out of OS No. 34 of 2005 allowing an application filed by the respondent under Section 45 of the Arbitration and Conciliation Act, 1996 (in short, “the Act”).

2. The relevant facts leading to the filing of this appeal, as emerging from the case made out by the appellant, may be summarized as follows:

3. The appellant is a company dealing in the business of manufacturing and exporting food products and cereals/grains etc. The appellant was to export sorghum (hereinafter referred to as the “cargo”) to the State of Niger. The appellant thereafter negotiated with the head of the State of Niger through a lady Principal Officer for an export Order. In that process, the appellant herein obtained an irrevocable letter of credit from the State Bank of India, Overseas Branch, New Delhi, on 12th of July, 2005. On 26th of July, 2005, th