( 1 ) THIS appeal is preferred under Section 37 of the Arbitration and Conciliation Act, 1996 (for short, the Act) against the order dated 5-11 -2004 in O. P. No. 1457 of 2001 on the file of the Court of Ill-Addl. Chief Judge, City Civil court, Hyderabad, whereunderthe application made by the appellant herein undersection 34 of the Act to set aside the arbitral award dated 6-6-2001 was dismissed.

( 2 ) THE facts, in brief, may be noted as under: the second respondent herein was awarded the contract for supply of fresh fruits at supply depots at Tirumalgherry, Hakimpet and ASC golconda for the period from 1-10-1999 to 30-9-2000 in pursuance of the tenders invited by the appellant. As per the agreement dated 6-8-1999 executed between the parties, the second respondent was required to make the supply of fresh fruits in terms of the specifications and conditions annexed to the agreement. It is not in dispute that in pursuance of the said agreement though the supply of fruits was commenced with effect from 1-10-1999, the 2nd respondent stopped the supply from 6-6-2000 on the ground that nonlocal variety of fruits demanded by the appellant were not available. Consequently