( 1 ) THE parties hereto are companies registered and incorporated under the Companies Act, 1956 (for short "the Act" ). Directors and shareholders of the petitioner - company, however, are said to be residents of Malaysia. The Board of Directors of the petitioner also sits at Malaysia.

( 2 ) A contract for rehabilitation and upgrading was awarded to the respondent by the National Highway Authority of India. Respondent subcontracted a portion thereof to the petitioner by three letters of awards dated 12. 04. 2002, 24. 05. 2002 and 29. 08. 2002. However, for the purpose of present petition, we are concerned with the second and third letters of award. The parties entered into those contracts containing an arbitration clause, which read as under:

"if the parties fail to settle the question, dispute or difference through negotiations, the same shall be referred to Arbitration as per the provisions of the Indian Arbitration Act, 1940 and the rules made thereunder and any statutory modifications or re-enactment thereof that may be made from time to time and actually in force at the time of reference. The cost of arbitration shall be borne by the parties in the ratio to be agreed upon by t