JUDGMENT :

J. B. PARDIWALA, J.

1. This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, (for short, ‘the Act 1996’), filed at the instance of a company based in Switzerland and engaged in the business of manufacturing of arms etc., praying for appointment of an arbitrator for the adjudication of disputes and claims arising out of the Contract No. 78953/SMG/GS/WE-4(GS-IV) dated 27.03.2012 executed with the respondent Government of India in its Ministry of Defence.

FACTUAL MATRIX

2. The respondent, Ministry of Defence vide the RFP No. 78953/SMG/GS/WE-4 dated 18.11.2009 floated an urgent tender for procurement of 1,568 Sub Machine Guns under a Fast Track Procedure. The petitioner participated in the tender process and offered its bid. The tender was opened on 21.12.2010 and the petitioner was declared to be the lowest acceptable bidder. After due negotiations, the Contract was executed and signed on 27.03.2012.

3. The dispute between the parties arose in relation to the alleged wrongful encashment of warranty bond by the respondent. The respondent vide i