B.N. SRIKRISHNA, J.:---This appeal under section 37(1)(b) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act") challenges the order of the learned Single Judge dated 6th/7th November, 2000 dismissing the petition to set aside the arbitral award.

Facts :

2. The facts giving rise to the present appeal, concisely stated, are as under :---

The appellant is a nationalised bank, carrying on the business of banking in its various branches and offices in the city of Mumbai. The respondent is a company registered under Companies Act, 1956 doing business in real estate including the business of hiring out built up areas of business premises. The respondent, at the material time, was the owner of certain premises situated on the ground floor and basement of Maker Chamber No. IV, Nariman Point, Mumbai 400 021. These premises were offered to the appellant under agreements of leave and licence dated 23rd May, 1988 and 27th June, 1989. Under the agreement of 23rd May, 1988 an area of 6078 sq.ft. on the ground floor and 620 sq.ft. in the basement of the suit property was given on leave and licence basis for a period of ten years. An amount of Rs. 2,75,00,000/- was paid by the appellant to the respondent as advance payment under the agreement which was to carry interest at the rate of 15% per annum with quarterly rest and was liable to be adjusted towards the compensation during the last five years of the licence period. The compensation for use of the aforesaid premises was fixed at the rate of Rs. 3,62,500/- per month for the first five years and at the rate of Rs. 4,71,250/- per month for the second term of five years.

3. Under a supplemental agreement dated 23-5-1988 the respondent agreed to provide certain services to the appellant. Under the agreement of 27-6-1989 an area of 2195 sq.ft. was given on leave and licence on monthly compensation of Rs. 1,42,675/- from the date of the agreement to 30-6-1994 and at the rate of Rs. 18,500/- from 1-7-1994 to 31-3-1998.

4. Under Clause 22 of the agreement dated 23rd May, 1988, it was, inter alia, agreed as under :---

"If at the expiry of the period reserved under this agreement or on the happening of the contingency hereinabove envisaged the licensee is unable to deliver the possession of the licensed premises to the licensor for any reason whatsoever then at the option of the licensor, to be expressed by at a notice of 15 days duration and to be served upon the licensee, the licensee doth hereby agree to purchase the licensed premises from the licensor on ownership basis at a price prevailing at the relevant time to be determined by M/s. K.G. Kapadia Co. presently having their office at 3rd floor, Maker Chamber III, 223 Nariman Point, Bombay 400 021 failing which by M/s. I.M. Kadri having their office at Shivsagar Estate, Annie Besant Road, Bombay 400 018 and failing both of them by such Government approved valuers and surveyors as the licensor may appoint and which price shall be ascertained on the relevant date on the basis of and with reference to the mutually accepted present base price at the rate of Rs. 12,500/- (Rupees Twelve Thousand Five Hundred Only) per sq.ft of built up area in respect of the ground floor premises and Rs. 3000/- (Rupees Three Thousands Only) per sq.ft. of the basement premises, aggregating to Rs. 7,78,35,000/- (Rupees Crores Seven Crores Seventy Eight Lakhs Thirty Five Thousand Only). The prevalent price at the relevant time to do so ascertained shall under no circumstances be less than the aforementioned base price."

The agreement also provides in the same clause that, until the exercise of the aforesaid option of the respondent licensor expressed in the manner in the agreement, the agreement to sell contained in the clause shall not come into force and that the relationship between the parties shall continue to remain as that of licensor and licensee. By a further letter of 27th June, 1989 addressed by the respondent to the appell